The artificial intelligence sector is off to a fast start in 2023 as one of the top-performing investment sectors. Much of this buzz has been driven by OpenAI releasing ChatGPT. Researchers have taught the ChatGPT to converse with users in a “conversational style,” opening it up to a larger range of users. Among other things, the chatbot has been able to pass the Medical Licensing exam and MBA exams.
According to current sources, Chat GPT reached a million subscribers barely five days after it was established in November 2022. This is a remarkable accomplishment, particularly in light of the long time it has taken other well-known online platforms to achieve a comparable milestone.
Investing in artificial intelligence (AI) can be a smart decision, as AI is a rapidly growing field with a lot of potential for innovation and growth. However, like any investment, there are risks and uncertainties involved. It’s important to conduct thorough research and due diligence to understand the potential rewards and risks of any investment opportunity, including AI-related investments. This can involve considering factors such as market trends, the competitive landscape, and the stability and scalability of the technology.
It is difficult to determine the “best” artificial intelligence (AI) investments, as the field is rapidly evolving and market conditions can change quickly. That being said, some companies that are frequently mentioned as leaders in AI and are often seen as potential investment opportunities include:
- Alphabet (Google)
- Amazon
- Microsoft
- IBM
- NVIDIA
- Intel
- Salesforce
- Baidu
- Alibaba Group
- Tencent
But most of these companies are diversified with only a small percentage of income coming from artificial intelligence. Instead, we like to target investment opportunities where the companies are more pure-play AI and likely to benefit more substantially from the rapid advancement of the sector.
A few of those companies that we are tracking at Nicoya Research include:
C3.ai (AI) is up 79% year to date in 2023. They are a company that specializes in enterprise artificial intelligence (AI) software. It provides a suite of AI tools and solutions for businesses and organizations to help them transform their operations and processes using AI technologies. The company’s offerings include solutions for various industries, such as energy, finance, healthcare, and government, among others. C3 AI also provides a platform for building and deploying AI applications, which allows businesses to quickly and easily integrate AI into their operations. The company’s goal is to help organizations harness the power of AI to drive innovation, improve efficiency, and gain a competitive advantage in their respective industries.
UiPath Inc. (PATH) is up 25% year to date. The company provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform combines artificial intelligence with desktop recording, back-end mining of both human activity and system logs, and intuitive visualization tools, which enables users to discover, analyze, and identify processes to automate in a centralized portal; offers low-code development environments that allows users in an organization to create attended and unattended automations without any prior knowledge of coding; deploys robots in highly immersive attended experiences or in standalone, unattended modes behind the scenes, and can leverage native connectors built for commonly used line-of-business applications; offers centralized tools designed to manage, test, and deploy automations and ML models across the enterprise; allows customers to manage long running processes that orchestrate work between robots and humans; and enable users to track, measure, and forecast the performance of automation in their enterprise and help businesses ensure compliance with business standards.
Presto Automation (PRST) is up 53% year to date. The company offers the restaurant industry’s most widely adopted A.I.-powered drive-thru voice assistant. The solution has the richest feature set, is easy to install at scale, offers 24/7 availability, and delivers proven ROI. The vast majority of drive-thru voice A.I. systems currently operational in the United States are powered by Presto with over 277,000 products deployed. voice A.I. system operates at peak efficiency 24/7 all year round. Over 95% of the orders are taken with no human intervention and provides increased order accuracy and ultimate reliability.
Fetch.ai (FET) is up 186% year to date. The cryptocurrency provides Autonomous Agent technology allowing user to power peer-to-peer applications with automation and AI capabilities, with or without direct access to a blockchain. The Fetch.ai network is an interchain protocol, based on the Cosmos-SDK, and uses a high-performance WASM-based smart contract language (CosmWasm). This also allows the Fetch.ai network to serve as a layer-1 network for Ethereum and as an interchain bridge to the rest of the blockchain world.
Fetch.ai provides modular and reusable code for P2P interactions, blockchain network and smart contracts for economic settlement, decentralised Machine Learning for innovative solutions for agents to act upon, development using their client library, an indexer for fast querying and a CLI tool for contract deployment and testing. The FET token is the primary medium of exchange within the Fetch.ai ecosystem. If you want to pay for services provided by Fetch.ai, you pay in FET. Much like you use USD to buy services in the United States.
Render (RNDR) is a cryptocurrency that is up 258% year to date. The Render Network is the leading provider of decentralized GPU based rendering solutions, revolutionizing the digital creation process. Render puts the power of GPU rendering at your fingertips, at a fraction of the cost and speed of in-house rendering. The Render Network is designed to connect users looking to perform render jobs with people who have idle GPUs to process the renders. Owners would connect their GPUs to the Render Network in order to receive and complete rendering jobs using OctaneRender. Users would send RNDR to the individual performing the render work and OTOY would receive a small percentage of RNDR for facilitating the transaction and running the Render Network. It provides a window into the next generation of the metaverse, where blockchain networks, AI technology, generative art, and fully immersive NFTs come together to open up new horizons for virtual experiences.
There is no way to know for sure if the rapid valuation appreciation we have seen from artificial intelligence investments will continue in 2023. They are likely to follow the macro trend, which still remains uncertain. Some are predicting a Recession in 2023 and others see a soft landing from the Fed and other central banks ending rate hikes. Either way, the names that we have highlighted above appear to have bottomed and are just starting to bounce after major corrections over the past year of 50% or more. They still have upside of 3x to 5x to return to the highs from the past few years.
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