Artificial intelligence has already become a transformative technology. AI-powered smart speakers sit in our homes, manufacturing robots with AI work in factories, and some of our cars use AI to automatically apply the brakes or steer vehicles back into their lanes.
But tech companies are still just getting started with AI, which means that there’s still plenty of opportunities for investors to benefit from artificial intelligence for years to come. If you’re looking for some top artificial intelligence stocks to buy right now, check out what Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Lemonade (NYSE:LMND) are doing.
Amazon’s integrated AI
Amazon has integrated artificial intelligence into nearly every part of its businesses, from cloud computing to its delivery network.
The company uses AI to recommend products on its massive e-commerce market, which ensures that when you’re shopping on Amazon it knows exactly what you want and suggests the right products for you.
Considering that Amazon makes nearly 90% of its revenue from its e-commerce business the company is putting a lot of faith in AI. But that’s not the only place where the company relies on this tech innovation. Amazon’s experimental GO grocery stores use advanced AI to allow shoppers to automatically keep track of what they put in their carts and charge them as they walk out of the store.
But Amazon’s AI integration doesn’t end there. The company has one of the leading AI-powered virtual assistants, Alexa, which is the brains in its Echo smart speakers and Fire TV streaming devices, and integrated with a slew of third-party devices.
And finally, Amazon offers AI services for developers and companies through its Amazon Web Services (AWS) company. AWS is one of the biggest public cloud computing services, and Amazon earns 54% of its operating profit from AWS. Through AWS, developers implement complex AI and machine learning services without having to build the technologies themselves.
Nvidia’s AI chip powerhouse
While artificial intelligence may seem like an abstract technology that happens in the cloud, it still needs hardware to function. And that’s where the graphics chip company Nvidia comes in.
The company’s graphics processors (GPUs) are some of the most advanced in the industry and, for a while, they were only used to power video game graphics. But it turns out that GPUs are also very adept at processing AI information as well.
Nvidia’s GPUs are used by nearly all of the world’s top technology companies to power their AI data centers and there’s no end in sight for the demand. As AI continues to be integrated into more software and services, many companies will rely on Nvidia’s chips to provide the brains for their AI systems.
And with NVIDIA’s data center segment already growing at a healthy clip — sales in the segment skyrocketed 124% in fiscal 2021 — artificial intelligence should continue to help Nvidia continue growing.
Lemonade is using AI to make insurance sweeter
Last, but certainly not least is the online insurance company Lemonade, which uses AI to allow customers to find low-cost policies. The company offers term life insurance, homeowners insurance, renters insurance, pet insurance, and will soon offer car insurance.
Not only does Lemonade’s AI help potential customers find the right policy, but it also does much of the legwork when customers file an insurance claim. Lemonade is able to process many insurance claims entirely through the company’s AI chatbots, making it efficient for both the company and its policyholders to get their claims processed online.
Demand for an AI-powered insurance company appears very strong, considering that Lemonade now has 1 million customers, more than triple its customer count just two years ago. And once the company launches its car insurance offering, it’s likely that this fast-growing AI insurance company will experience even more demand.
Don’t wait until AI is everywhere
Investors have a unique opportunity right now to benefit from AI while it’s still in its infancy. Soon, artificial intelligence will power nearly every type of technology that we use. But right now, investors have the chance to buy stocks that are leading the AI charge.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.