Key takeaways:

• AI stocks span across market segments like semiconductors, software and hardware, cloud computing, cybersecurity, robotics and automation, medtech, and of course, big tech

The buzz around ChatGPT has led to surging interest in artificial intelligence (AI) stocks, especially tech shares listed on the Nasdaq. 

It goes without saying that AI has the potential to disrupt just about every industry. While ChatGPT has presented AI in its most simple format, using data analysis to generate likely outputs, its capabilities are far more powerful, extending to uses like machine learning, autonomous vehicles, robotics and automation, smart appliances and applications, to name but a few.

With advancement in these areas only set to continue, many investors believe AI could be a key investing theme of the future.

Whether you believe AI will revolutionise our way of living, or that it is another tech bubble in the making, these are some companies at the forefront of the recent frenzy.

Nvidia (NASDAQ: NVDA)

The company that has effectively turned into the flagbearer for AI in recent times, Nvidia is a semiconductor designer already reaping the benefits of growing investment in artificial intelligence. Long known for its expertise developing graphics processing units (GPUs), the company new range of microchips power AI software and services, with demand swelling across a diverse base of end users.

Thanks to its early investment in AI over the years, the company has positioned its GPU business and next-gen range of chips as the engine behind large language models (LLMs) like ChatGPT.  It even led the company to deliver a strong revenue guidance when it reported earnings earlier this month, with business demand for AI platforms on a tear ever since ChatGPT came to prominence.

ServiceNow (NYSE: NOW)

ServiceNow, a cloud infrastructure company, has partnered with Nvidia to develop enterprise-grade generative AI capabilities. More specifically, its focus is on developing customised large-language models that allow new functionality to be extended across an enterprise. This includes duties like customer service tasks that draw on internal data, as well as human resource tasks that involve some degree of automation. 

The company announced it will allocate US$1 billion into its venture firm, ServiceNow Ventures, for investment in AI and automation businesses targeting enterprise use cases. In addition, recent acquisitions of AI businesses and a suite of generative AI tools for businesses - including search functions and workflow APIs - round out the company efforts in this space.

UiPath (NYSE: PATH)

UiPath is a global software company that leverages artificial intelligence to power robotic process automation (RPA) and business process automation (BPA) solutions. While some observers have questioned whether significant adoption of AI technology might work against the investment pitch for RPA, the company believes AI tools like ChatGPT will be complementary with automation software, rather than competitive. In fact, the company indicated that it believes generative AI is the missing piece that has acted as a barrier to widespread adoption of robotic process automation thus far.

Dynatrace (NYSE: DT)

Another lesser-known software name offering exposure to artificial intelligence is US-based Dynatrace. The firm utilises AI for a multitude of cases ranging from app security to log monitoring, and even business analytics. Dynatrace Grail analytics tool is designed to help business users understand internal data and improve customer attrition outcomes. As part of its strategy, the company is transitioning platform subscribers to longer-term contracts, a move intended to provide more visibility and certainty around recurring revenue and retention.

Intuitive Surgical (NASDAQ: ISRG)

Operating in the medical technology space, Intuitive Surgical is a pioneer of robotic-assisted surgical systems. The company most well-known development is the da Vinci Surgical System, which harnesses AI algorithms to improve patient outcomes during surgery. 

Intuitive Surgical has become a leader in this space, with its system rolled out in hospitals and surgical centres around the world. Medical professionals have embraced improvements as far as safety, accuracy, and precision. With artificial intelligence at the heart of its functionality, it stands to reason that further improvements in this realm could also provide additional benefits as far as patient outcomes, as well as the delivery and quality of healthcare.

Crowdstrike Holdings (NASDAQ: CRWD)

Cybersecurity tech firm Crowdstrike provides cloud workload and endpoint security, threat intelligence, and cyber attack response services. It is behind Charlotte AI, a generative AI cybersecurity analyst designed to help end users better understand the threats and risks facing their organisation. 

This AI tool was created so that users of any experience level can identify and respond to cyber security threats with more efficiency. Users simply need to ask a few simple questions and Crowdstrike AI system can deliver real-time insights into a company risk profile, while also facilitating threat hunting and allowing mundane tasks to be automated.

Symbotic (NASDAQ: SYM)

Multinational retailer Walmart has a major stake in Symbotic, a US robotics warehouse automation company. It incorporates artificial intelligence in the software behind the automated warehouse systems it builds and operates for North American clients such as Walmart. Symbotic end-to-end automated warehouse platform mixes autonomous robots and intelligent software to manage warehouse goods.

At the heart of its capabilities, AI is designed to help end users manage their supply chain, predict consumer demand patterns, enable virtual customer experiences, and facilitate customer search queries. With more than 15 years of operations, the company boasts around 500 patents, and has developed something akin to a first-mover advantage within its industry.

C3.ai Inc (NYSE: AI)

Offering Software-as-a-Service (SaaS) applications to develop, deploy, and run enterprise-scale AI applications, C3 AI is a multidisciplinary software provider. The company has developed tailored software packages for the energy industry, financial services firms, as well as supply chain optimization suites. 

The enterprise AI platform provider has a number of high-profile clients on its books, and it also boasts a partnership with Alphabet that sees the pair developing AI applications using Google Cloud infrastructure and resources. That partnership also hosts all of C3 AI applications via Google Cloud.

Arista Networks(NYSE: ANET)

Arista Networks provides the infrastructure that is the foundation for big data AI. There are expectations that mega-tech firms and hyperscalers will need to boost their infrastructure to support the larger bandwidths that arise from the use of AI-optimised graphics processing units. 

The network infrastructure company history of delivering high-performance networking equipment is something it touts amid a potentially favourable backdrop where stronger capacity may be required to cater to AI-driven demand. It has established relationships with companies developing AI tech like Microsoft and Meta Platforms, while emerging trends around data storage and cloud computing are other factors that could impact the company future prospects.

Palantir (NYSE: PLTR)

As an operator of AI data mining platforms for government agencies and enterprises, Palantir is looking to roll out its solutions for increasingly complex tasks. The company has argued that artificial intelligence, including large language models, is something that could be transformational for its operations. 

Palantir government platform, Gotham, is designed to identify data patterns in order to provide counter-terrorism intelligence. On the other hand, its fully-managed SaaS business platform, Palantir Foundry, is designed to equip users with situational intelligence and to make data-driven operational decisions.

More AI Stocks to Watch

Big tech

It no secret that the likes of Microsoft (NASDAQ: MSFT), through its investment in the team behind ChatGPT, and Alphabet (NASDAQ: GOOGL), by way of its generative AI chatbot Bard, are the heavy hitters in this space with the resources to capitalise on the AI boom.However, other big tech players like Tesla (NASDAQ: TSLA), Apple (NASDAQ: AAPL), Meta Platforms (NASDAQ: META), Adobe (NASDAQ: ADBE), IBM (NYSE: IBM), and Baidu (HKG: 9888) could also have an important role to play in the widespread adoption and utilisation of artificial intelligence.

Semiconductor stocks

Nvidia might be the most prolific chip company suggesting an upswing in business in the wake of the AI era, but there is a long list of other semiconductor stocks also hoping to ride the wave of euphoria, or even take the next step in their growth journey. 

Whether they are chip designers, foundries, fabless manufacturers, electronic design automation (EDA) companies, or something else altogether, here are some names:

• NXP Semiconductors (NASDAQ: NXPI)

• Advanced Micro Devices (NASDAQ: AMD)

• Taiwan Semiconductor Manufacturing (NYSE: TSM)

• ON Semiconductor (NASDAQ: ON)

• Analog Devices (NASDAQ: ADI)

• Qualcomm (NASDAQ: QCOM)

• Lattice Semiconductor (NASDAQ: LSCC)

• Synopsys (NASDAQ: SNPS)

• Ambarella (NASDAQ: AMBA)

• ASML Holding (NASDAQ: ASML)

• Micron Technology (NASDAQ: MU)

• Cadence Design Systems (NASDAQ: CDNS)

• STMicroelectronics (NYSE: STM) 

• Globalfoundries (NASDAQ: GFS)

• Marvell Technology (NASDAQ: MRVL)

• Brainchip (ASX: BRN)

Hardware and software shares

There is no shortage of companies either looking to leverage AI to improve customer outcomes across the tech sector, or that might play a lending hand in providing the infrastructure for artificial intelligence to take off. 

From data centre operators, to software names, automotive technology, automated services, cybersecurity, and cloud computing, among others, AI has well and truly branched out into a number of industries.

Some stocks operating across these areas include:

• NextDC (ASX: NXT)

• Appen (ASX: APX)

• Autodesk (NASDAQ: ADSK)

• Nexteer Automotive Group (HKG: 1316)

• Snowflake (NYSE: SNOW)

• PTC Inc (NASDAQ: PTC)

• Cognex Corporation (NASDAQ: CGNX)

• Altair Engineering (NASDAQ: ALTR)

• ANSYS (NASDAQ: ANSS)

• Synaptics (NASDAQ: SYNA)

• Cerence (NASDAQ: CRNC)

• Samsara (NYSE: IOT)

• Luminar Technologies (NASDAQ: LAZR)

• SentinelOne (NYSE: S)