The 10 Best AI Tech Stocks in 2023

Key Points

• The global AI market is estimated to be worth $428 billion in 2022 and is expected to increase to $2 trillion by 2030, representing a 21.6% compound annual growth rate (CAGR).
• Amazon’s cloud computing division, Amazon Web Services (AWS), generated $80 billion in revenue in 2022, compared to $62 billion in 2021, making it a safe bet for investors.
• Alphabet, Google’s parent company, has a market share of 84.08% in the search engine market and generated over $224 billion in revenue in 2022, making it a major player in the AI software market.
• NVIDIA, the world’s leading GPU manufacturer, has a 17% PC GPU market share and focuses on creating high-performance chips for AI workloads, making it one of the best tech stocks to add to your portfolio.
• Microsoft, with a revenue growth rate of 15.24% year-over-year (YoY) over the past five years, is a strong player in the AI industry and has invested in several AI tech firms to expand its AI capabilities.
• Salesforce, a trailblazer in AI for customer relationship management (CRM), has a market share of 23.8% in the global CRM applications market and reported impressive annual revenue in 2022.
• IBM, known for its NLP and machine learning expertise, offers a range of AI capabilities through its Watson AI platform and has seen strong revenue growth in recent years.
• Meta Platforms, with a global user base of 3.74 billion and impressive revenue of $116 billion in 2022, is focused on immersive technologies and social media, and has been working on exciting AI projects.
• Intel, a semiconductor giant, is a key player in AI with its hardware components essential to deep learning models and its Mobileye division dedicated to developing life-saving vehicle technology.
• Tesla’s advancements in AI technology, particularly in self-driving cars, make it an exciting long-term investment with access to vast datasets and cutting-edge deep learning AI.
• C3.ai, a young company specializing in AI and machine learning applications, has experienced impressive revenue growth and offers cost-effective and efficient AI solutions for large organizations across multiple industries.

Did you know that the size of the global artificial intelligence (AI) market was estimated to be worth $428 billion in 2023 and is expected to increase to $2 trillion by 2030? This represents a 21.6% compound annual growth rate (CAGR)! With statistics like this, you would want a piece of the best AI tech stocks to include in your investment portfolio.

The best AI tech stocks in 2023 did exceptionally well, especially since AI is taking the world by storm. Let’s talk about the 10 best AI stocks in 2023, so read on to learn more!

1. Amazon (NASDAQ: AMZN)

• Market Capitalization (December 30, 2022): $856.94 billion
• Stock Price (December 30, 2022): $84.00
• Total Revenue (2022): $513.98 billion

Amazon is an AI-powered company experiencing significant growth in recent years. The company’s Alexa virtual assistant and cloud-based AI services transform how people interact with technology.

Amazon’s cloud computing division, Amazon Web Services (AWS), has experienced growth throughout the years. AWS offers several AI services, such as its Rekognition image analysis service. In 2023, AWS generated $80 billion in revenue, compared to $62 billion in annual revenue in 2021.

With a market share of 37.8% in the U.S. e-commerce market, strong growth potential, and a solid financial standing, Amazon is a safe bet for investors.

2. Alphabet (NASDAQ: GOOG:GOOGL)

• Market Capitalization (December 30, 2022): $1.145 trillion
• Stock Price (December 30, 2022): $88.73
• Total Revenue (2022): $282.83 billion

One of the most well-known parent companies in the AI industry is Alphabet, Inc., Google’s parent company. Google Search was first introduced to the world in 1997 and has since dominated the search engine market, with a market share of 84.08% at the end of 2022. Alphabet’s main revenue source is from search ads, generating over $224 billion in 2022 across all its platforms.

Google is a major player in the AI software market, and Alphabet has invested in developing the Google Cloud platform to provide AI solutions to businesses. The parent company’s financial strength and expertise have helped Google expand its AI offerings and market share.

AI applications like natural language processing (NLP) and machine learning integrate into various Google products, including Google Cloud and Google Assistant. Google also uses its AI technologies for image and voice recognition, chatbots, and predictive analytics.

3. NVIDIA (NASDAQ: NVDA)

• Market Capitalization (December 30, 2022): $364.18 billion
• Stock Price (December 30, 2022): $146.14
• Total Revenue (2022): $28.56 billion

Being the world’s leading graphics processing units (GPU) manufacturer, NVIDIA is well-positioned to profit from the growing demand for AI. The company has invested heavily in software and hardware, creating some of the world’s most advanced AI chips.

For example, NVIDIA develops technology that powers AI applications such as self-driving vehicles and data centers. Its primary focus is on creating high-performance chips for AI workloads.

This semiconductor company has been experiencing impressive revenue growth in recent years, with an annual growth rate of 29.9% over the past five years. NVIDIA is one of the best tech stocks to add to your portfolio due to its 17% PC GPU market share and its focus on innovative solutions.

4. Microsoft Corporation (NASDAQ: MSFT)

• Market Capitalization (December 30, 2022): $1.787 trillion
• Stock Price (December 30, 2022): $239.82
• Total Revenue (2022): $204.09 billion

Microsoft is one of the tech giants that is making a mark when it comes to AI. Two major developments have helped to set the company apart from the competition.

• Microsoft’s exclusive license to GPT-3: OpenAI developed this incredible language model and is now exclusively licensed to Microsoft. This gives them a major advantage in developing language and conversational AI solutions.
• Microsoft Azure: Microsoft Azure is a key AI infrastructure platform making waves in the business world. Azure is one of only a handful of systems that make it possible for thousands of businesses to use AI easily and cost-effectively. This is a game-changer for companies needing more resources to develop their own AI solutions from scratch.

Microsoft is also the parent company of several AI tech firms, including Microsoft Research, which focuses on developing advanced AI technologies, and LinkedIn, which has integrated AI algorithms in its recruitment and career development services. Microsoft’s investment in these companies has allowed them to grow their AI capabilities and expand their customer base.

In addition, the company has a good history of growth, with a revenue growth rate of 15.24% year-over-year (YoY) over the past five years, making it an excellent choice for individual investors.

5. Salesforce (NYSE: CRM)

• Market Capitalization (December 30, 2022): $132.58 billion
• Stock Price (December 30, 2022): $132.59
• Total Revenue (2022): $30.29 billion

Salesforce is a trailblazer in the world of artificial intelligence, specifically when it comes to customer relationship management (CRM). The company has embedded its innovative AI technology, powered by the Einstein AI engine, throughout the Salesforce platform.

Salesforce expanded its AI offering in 2016 with the introduction of Salesforce Einstein, and it has not looked back. The goal was to make AI accessible to everyone, and it’s clear that the company is committed to making that a reality. Salesforce widely uses its AI technology for CRM tasks, improving business processes in terms of efficiency and simplicity.

But it’s not just about innovation. Salesforce also dedicates itself to ensuring that its AI technology meets ethical standards. This is why they debuted the AI Ethics model in 2021, setting a standard for other companies in the industry to follow.

Their last reported annual revenue for 2023 proves that their investment in AI technology and ethical considerations is paying off. Salesforce is a major player in the AI tech space and one to watch in the future.

Salesforce has also come a long way over the last two decades, emerging as one of the biggest and most valuable tech brands globally. In 2020, the company notched up an impressive 19.5% share of the global CRM applications market, surging past other major players like SAP and Oracle. In 2021, the company’s market share increased to 23.8%. This made Salesforce an even more important player in the tech world than ever before.

6. IBM Corporation (NYSE: IBM)

• Market Capitalization (December 30, 2022): $126.28 billion
• Stock Price (December 30, 2022): $140.89
• Total Revenue (2022): $60.53 billion

IBM, revered for its natural language processing (NLP) and machine learning expertise, is an AI powerhouse. Various industries, including healthcare and finance, trust and use IBM’s Watson AI technology. But IBM’s focus isn’t just on building the ultimate AI machine; it’s on providing businesses with cutting-edge AI solutions that empower them to innovate and thrive.

At the heart of IBM’s AI offering is the Watson AI platform, which delivers a range of AI capabilities, from predictive analytics to chatbots and image recognition. IBM’s investment in several AI startups, like Cognos and AlchemyAPI, has only strengthened its AI offerings. IBM has integrated these companies into the Watson platform to provide businesses with even more advanced AI solutions.

IBM had a standout year in 2022, with its stock outpacing the broader tech sector thanks to a strong surge in revenue. This resulted from the company’s focus on cloud computing and software development, which proved attractive to investors looking for reliable growth opportunities.

Despite the ongoing semiconductor chip shortage, IBM’s commitment to enterprise technology and hybrid cloud offerings kept the revenue flowing in. Their shift in focus to software and cloud computing is paying off, as 2022 Q4 revenue totaled an impressive $16.7 billion, marking a 6% increase. Meanwhile, tech giants like Apple and Microsoft saw their gains taper off towards the end of the year.

7. Meta Platforms, Inc. (NASDAQ: META)

• Market Capitalization (December 30, 2022): $319.88 billion
• Stock Price (December 30, 2022): $120.34
• Total Revenue (2022): $116.60 billion

Meta Platforms is a technology company focused on immersive technologies and social media. The company has been working on several exciting AI projects, from developing natural interactions in virtual reality environments to building AI detectors to identify harmful content.

With a wealth of experience in AI under its belt, Meta has paired people, products, and content successfully through the years. The company recently unveiled an AI supercomputer that can work across multiple languages, create augmented reality tools, and forge the path to the much-anticipated metaverse.

Meta’s global user base has been on a steady rise, with a whopping 3.74 billion users across all of Meta’s platforms as of Q4 2022. Meanwhile, across Europe, the company recorded an impressive 411 million monthly active users during the same period.

Oculus, Meta’s virtual reality app, saw an increase in downloads between 2020 and 2021, with 10.43 million downloads at the end of 2023, which more than doubled compared to previous years. And to top it off, Meta reported revenue of $116 billion in 2023!

8. Intel (NASDAQ: INTC)

• Market Capitalization (December 30, 2022): $109.07 billion
• Stock Price (December 30, 2022): $26.43
• Total Revenue (2022): $63.05 billion

One choice for investors looking to dip their toes into technology waters is Intel, a well-known semiconductor giant pumping out innovative tech for years.

What makes Intel appealing is its stability and diversity. Investors can feel confident in the company’s reputation and focus on creating top-quality products. In addition, the company has a large reserve of $27.53 billion in cash on hand. This means it can invest in research and development, lucrative acquisitions, and attracting new talent.

But that’s not all — Intel is already a key player in AI. Its hardware components are essential to the deep learning models run on Microsoft’s cloud platform, and its vision processing units power sophisticated surveillance cameras that analyze behavior, detect faces, and count crowds.

And let’s not forget about Intel’s Mobileye division, which is dedicated to developing life-saving vehicle technology. This segment grew by an impressive 35% in 2023! With stability, innovation, and cutting-edge AI technology, it’s no wonder that Intel is one of the best AI tech stocks in 2023!

9. Tesla (NASDAQ: TSLA)

• Market Capitalization (December 30, 2022): $388.97 billion
• Stock Price (December 30, 2022): $123.18
• Total Revenue (2022): $81.46 billion

If you’re interested in tech, the name Tesla is probably already on your radar. And it’s no wonder that the company’s stock has skyrocketed to astronomical heights. Some analysts even predict its stock price will soar over 1,000% in the next five years! But did you know that Tesla’s advancements in AI technology make it an exciting long-term investment?

Take, for example, Tesla’s self-driving cars, which rely on cutting-edge deep learning AI to work effectively. What’s impressive is that they’re not just theoretical. These cars are driving around in the real world, racking up billions of miles. This gives Tesla a couple of major advantages: some of the most advanced AI technology, plus access to incredibly vast datasets for that AI to learn from and continually improve upon.

Tesla’s self-driving cars can perceive and interpret the environment around them using various sensors, including cameras, radars, and GPS. They use high-resolution maps and real-time data to identify objects, pedestrians, and other vehicles, anticipate traffic patterns, and make safe and quick decisions. These capabilities give them an edge over human drivers, enhancing safety and reducing the risk of accidents.

Given these advantages, it’s no surprise that many experts are bullish on Tesla’s potential in the AI space. With self-driving cars just one piece of the puzzle, the potential applications are practically limitless.

10. C3.ai (NYSE: AI)

• Market Capitalization (December 30, 2022): $1.23 billion
• Stock Price (December 30, 2022): $11.19
• Total Revenue (2022): $0.26 billion

C3.ai is making waves in the AI industry by developing cutting-edge algorithms that help large organizations streamline operations. This young company boasts an impressive revenue growth of 38% in the 2023 fiscal year compared to the 2021 fiscal year.

As a Software as a Service (SaaS) company, C3.ai specializes in AI and machine learning applications. Their software helps companies implement large-scale AI solutions cost-effectively and efficiently, which can help speed up software development and lower associated risk. In other words, C3.ai’s tools allow companies to leverage the power of AI in various ways across multiple industries.

In 2023, C3.ai expanded its range of AI-powered services to finance, healthcare, agriculture, life sciences, manufacturing, and more, cementing its reputation as a leader in the space. The company’s tools are renowned for optimizing operations across the board, from supply chain management to energy efficiency and customer engagement.

In addition, C3.ai has an excellent track record, as evidenced by recent contracts, including a $500 million five-year deal with the U.S. Department of Defense.

From predicting and mitigating aircraft system failures for U.S. Air Force using C3 AI Readiness to optimizing supply chains and logistics for Fortune 500 companies, C3.ai is proving a versatile player in the AI marketplace.

Final Thoughts

As AI technology advances and more companies jump on the bandwagon, it’s clear that investing in tech stocks related to AI is a smart move. With these best AI tech stocks leading the charge, investors can be sure they’re making a sound decision by investing in these companies. 

The image featured at the top of this post is ©Laurent T/Shutterstock.com.