Have you ever used artificial intelligence (AI)? The answer is very likely "Yes." I know that because AI is already an active part of our daily lives, from virtual assistants like Siri and Alexa to personalized movie recommendations on Netflix. And with AI technology continuing to advance, the potential for growth in the AI industry is enormous. This makes investing in AI stocks a smart move for long-term investors looking to reap the rewards of this rapidly growing industry.
Several publicly traded companies have links to artificial intelligence. But do AI stocks have a place in investors' portfolios? The answer is yes. The AI industry is projected to reach $190 billion by 2025, and companies that specialize in AI are expected to see significant growth in the years to come. Long-term investors may want to consider these AI stocks to buy, given their upside in this current market environment.
The small-cap sector may be the place to find some of the best AI stocks to buy, and here are three names to watch closely. The first is NVIDIA (NASDAQ:NVDA), a leading AI chipmaker that provides the essential processing power for many AI applications. The company's graphics processing units (GPUs) are widely used in AI applications such as self-driving cars, natural language processing, and image recognition. Another small-cap AI stock to consider is Twilio (NYSE:TWLO), a cloud communications platform that has been expanding into the AI market. Twilio's AI-powered communication tools enable businesses to connect with customers in new and innovative ways. The third small-cap AI stock to watch is Cognex Corporation (NASDAQ:CGNX), a company that specializes in machine vision technology. Cognex's advanced vision systems are used in manufacturing, logistics, and other industries to automate processes and improve efficiency.