5 Best Stocks To Invest In According to AI

In this article, we discuss 5 best stocks to invest in, according to AI. If you want to read our detailed discussion on how valuable AI can prove to be in the financial and stock trading industry, head over to 13 Best Stocks To Invest In According to AI.

5. Salesforce Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 122

Share price performance from May 30 to September 7: 1.26%

Salesforce Inc. (NYSE:CRM) provides CRM technology to facilitate global business-customer interactions, including sales and customer service solutions. Their services cover data management, analytics, and personalized support, enhancing overall customer engagement and operational efficiency. On August 30, Salesforce Inc. (NYSE:CRM) reported a Q2 non-GAAP EPS of $2.12, beating Wall Street estimates by $0.24. The revenue of $8.6 billion increased 11.4% year-over-year, surpassing market prediction by $70 million.

As of May 30, the share price performance of Salesforce Inc. (NYSE:CRM) has seen an increase of 1.26%. This, coupled with the elevated revenue imply that this can be a good stock to invest in, as indicated by AI. According to Insider Monkey’s second quarter database, 122 hedge funds were bullish on Salesforce Inc. (NYSE:CRM), as compared to 136 in the last quarter. Ken Fisher’s Fisher Asset Management is the most prominent stakeholder of the firm, with almost 13.9 million shares, worth approximately $3 billion.

Ithaka US Growth Strategy made the following comment about Salesforce, Inc. (NYSE:CRM) in its first quarter 2023 investor letter:

“Salesforce, Inc. (NYSE:CRM) is the largest pure-play cloud software company, holding a leading market share in customer relationship management applications and a top-five market share position in the company’s other clouds (Marketing, Service, Platform, Analytics, Integration, and Commerce). The company’s software subscription term-license model differs from the traditional perpetual-license software model in two respects: (1) the software is hosted on centralized servers and delivered over the internet, as opposed to traditional enterprise software that is loaded directly onto customers’ hard drives or servers; and (2) the revenue model is subscription-based, typically charging monthly fees per user as opposed to charging one-time licensing fees. The stock’s strong relative performance followed a strong F4Q23 earnings release that easily beat Street expectations on the top- and bottom-lines. In addition to the beat, management announced a number of initiatives that activist investors have been clamoring for, specifically a halt to large M&A transactions and a focus on operating profitability.”

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 175

Share price performance from May 30 to September 7: 6.86%

NVIDIA Corporation (NASDAQ:NVDA) offers graphics, computing, and networking solutions both domestically in the United States and internationally, including Taiwan and China. On August 23, NVIDIA Corporation (NASDAQ:NVDA) reported a Q2 non-GAAP EPS of $2.70, beating Wall Street estimates by $0.61. The revenue of $13.51 billion increased 101.6% year-over-year, surpassing market prediction by $2.43 billion.

As of May 30, the share price performance of NVIDIA Corporation (NASDAQ:NVDA) has seen an increase of 6.86%. This, coupled with a more than 100% increased revenue imply that this can be a good stock to invest in, as suggested by AI. According to Insider Monkey’s second quarter database, 175 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), as compared to 132 in the last quarter. Rajiv Jain’s GQG Partners is the most prominent stakeholder of the firm, with almost 13.9 million shares, worth approximately $6 billion.

RiverPark Large Growth Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA): NVDA shares were our next top contributor in reaction to blowout 1Q results and 2Q guidance. The company reported revenue of $7.2 billion and EPS of $1.09, 10% and 18% ahead of expectations. Revenue guidance for 2Q of $11 billion was 53% above expectations. The artificial intelligence arms race kicked-off by generative AI applications ChatGPT and Alphabet’s Bard has generated tremendous demand for Nvidia’s next generation graphic processors.

NVDA is the leading designer of graphics processing units (GPU’s) required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming-focused chip vendor to one of the largest semiconductor/software vendors in the world. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. Following 1Q’s strong results, Jensen Huang, founder and CEO of NVIDIA stated in the company’s press release, “[a] trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.”

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 204

Share price performance from May 30 to September 7: 23.05%

Alphabet Inc. (NASDAQ:GOOG) provides a range of products and platforms across regions including the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. The company’s operations are categorized into three segments: Google Services, Google Cloud, and Other Bets. On July 25, Alphabet Inc. (NASDAQ:GOOG) reported a Q2 GAAP EPS of $1.44 beating Wall Street estimates by $0.10. The revenue of $74.6 billion increased 7% year-over-year, surpassing market estimates by $1.84 billion.

As of May 30, the share price performance of Alphabet Inc. (NASDAQ:GOOG) has seen an increase of 23.05%. This, coupled with a hiked revenue imply that this can be a good stock to invest in, as suggested by AI. According to Insider Monkey’s second quarter database, 204 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), same as the last quarter. Ken Fisher’s Fisher Asset Management is the most prominent stakeholder of the firm, with almost 42.7 million shares, worth approximately $5.11 billion.

Pershing Square Holdings made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its first half 2023 investor letter:

“Earlier this year, we initiated a position in Alphabet Inc. (NASDAQ:GOOG), the parent company of Google. We believe that Google is one of the world’s greatest businesses with deep barriers to entry and massive network effects underpinning its core search business. After having closely followed the company for many years, we had the opportunity to acquire a stake in Google at a highly attractive valuation as misplaced concerns over its competitive positioning in AI overshadowed the high-quality nature of its business and its strong growth prospects.

Google is the dominant leader in the fast-growing digital advertising market. Google has 85%+ market share in search and, along with YouTube, approximately 50% share of the digital advertising market. With higher and improving returns on investment, we expect digital ads to continue to take market share from traditional ad formats like TV and print, and increasingly drive the total advertising market growth above its historical trend. For example, in retail, rising e-commerce penetration is catalyzing the migration of offline promotion and trade spend dollars into digital ads. With Search and YouTube as two of the highest return and most resilient ad formats, Google is well positioned to benefit from the structural growth in digital ad share across many categories.

Similarly, in its Cloud business, Google is a top three player in an oligopolistic market that is in the early stages of a multi[1]year shift of IT workloads from on-premise to cloud and hybrid cloud solutions. These powerful secular tailwinds have enabled Google to grow overall revenues at a high-teens compound annual growth rate over the last five years which should continue to support near- double-digit top-line growth in the coming years…” (Click here to read the full text)

2. Meta Platforms Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 225

Share price performance from May 30 to September 7: 13.96%

Meta Platforms Inc. (NASDAQ:META), formerly known as Facebook, Inc. and TheFacebook, Inc., is a multinational technology conglomerate headquartered in Menlo Park, California, USA. The company possesses and manages various products and services, including Facebook, Instagram, Threads, and WhatsApp, among others. On April 26, Meta Platforms Inc. (NASDAQ:META) reported a Q1 GAAP EPS of $2.20 beating Wall Street estimates by $0.23. The revenue of $28.65 billion increased 2.7% year-over-year, surpassing market predictions by $990 million.

As of May 30, the share price performance of Meta Platforms Inc. (NASDAQ:META) has seen an increase of almost 14%. According to Insider Monkey’s second quarter database, 204 hedge funds were bullish on Meta Platforms Inc. (NASDAQ:META), same as the last quarter. Ken Fisher’s Fisher Asset Management is the most prominent stakeholder of the firm, with almost 42.7 million shares, worth approximately $5.11 billion.

RiverPark Large Growth Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q2 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META): META shares, continuing their rebound, were the top contributor for the second quarter. The company reported 1Q23 results, beating revenue expectations and lowering guidance for operating expenses and capital expenditures, while increasing revenue expectations.

META owns multiple social media platforms, each with more than one billion users, has an 80% gross margin, and generated $20 billion of FCF in 2022. Both its Facebook and its Instagram franchises have more than 2 billion Daily Active Users and generate the bulk of the company’s revenue. Recently, the company’s short form video offering, Reels, has gained mass user engagement and growing advertiser adoption, which we believe will return the company to strong revenue and free cash flow growth. After its advance, META shares trade at 19x Wall Street’s consensus estimates for 2024 EPS, estimates that we think could prove to be too low.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 300

Share price performance from May 30 to September 7: 0.50%

Microsoft Corporation (NASDAQ:MSFT) is a multinational technology company based in Redmond, Washington, USA. Some of the company’s most recognizable software offerings include the Windows series of operating systems, the Microsoft 365 suite comprising productivity applications, as well as the web browsers Internet Explorer and Edge. On July 25, Microsoft Corporation (NASDAQ:MSFT) reported a Q4 GAAP EPS of $2.69, beating Wall Street estimates by $0.14. The revenue of $56.2 billion increased 8.3% year-on-year, surpassing market estimates by $710 million.

As of May 30, the share price performance of Microsoft Corporation (NASDAQ:MSFT) has seen an increase of almost 14%. According to Insider Monkey’s second quarter database, 300 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), same as the last quarter. Michael Larson’s Bill & Melinda Gates Foundation Trust is the largest stakeholder of the firm with almost 39.3 million shares, valued at approximately $13.4 billion.

Alger Spectra Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. Microsoft’s CEO expects technology spending as a percent of Gross Domestic Product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector. The company operates through three segments: Productivity and Business Processes (Office, LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices, Gaming, and Search). During the period, shares contributed to performance as the company reported fiscal third quarter results above expectations driven by outperformance in More Personal Computing and Office Commercial. Additionally. management provided in-line Azure guidance, easing investor concerns of a potential slowdown in Azure growth estimates. Moreover, management provided encouraging commentary around Al, noting strong long-term opportunities as they integrate various Al offerings into their products and services.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out Long-Term Returns of Scott Ferguson Activist Targets and 20 Most Famous Breweries in the US.