Artificial intelligence (AI) — the capability of a machine to mimic intelligent human behavior — is a huge growth trend. The tech is being used to smarten up countless things large and small — from cities and homes to cars and computers to factory equipment and healthcare diagnostic tools.
One research firm, IDC, estimates that spending on AI systems will soar from $37.5 billion in 2019 to $97.9 billion in 2023, which is a more than 28% compound annual growth rate. Some sources predict even faster growth.
So it’s wise for investors to want some exposure to this high-growth area. Below are two top AI-related stocks worth investing in. You can invest in these stocks with as little as $1,000 (or less) because some online brokerages allow you to buy fractional shares of stock.
2 top AI stocks: Overview
Projected Annualized 5-Year EPS Growth*
YTD 2020 Return
Amazon: AI plays a key role across its businesses
Alexa is probably the most visible way to consumers in which Amazon uses AI since the voice-activated assistant is the brains of the company’s popular Echo smart home speakers. Amazon was the first mover in this space, beating fellow technology titans Alphabet and Apple to the punch.
Echo is still the market leader. This is important because smart speakers act as a hub of a smart home, so Amazon should be able to leverage its market leadership to sell…