5 Most Advanced AI Companies

In this article, we will be taking a look at the 5 most advanced AI companies. To read our detailed analysis of current trends in the artificial intelligence sector, you can take a look at the 11 Most Advanced AI Companies.

5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 132

NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company based in Santa Clara, California. It is the top provider of GPUs and AI chips that have become indispensable to the growth and development of AI operations today.

In total, 132 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA) in the first quarter, with a total stake value of $12.3 billion.

Vijay Rakesh at Mizuho maintains a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) shares as of July 24, alongside a $530 price target.

The Ithaka Group mentioned NVIDIA Corporation (NASDAQ:NVDA) in its second-quarter 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including: data center acceleration, artificial intelligence (AI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefited from tremendous excitement surrounding the further development of generative AI and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future; Second, Nvidia posted a beat-and-raise quarter for the history books, where the company upped its F2Q24 revenue guidance above Street estimates by an astounding 50%, causing the stock to gap up ~25% on the announcement.”

4. salesforce.com, inc. (NYSE:CRM)

Number of Hedge Fund Holders: 136

A Buy rating was maintained on salesforce.com, inc. (NYSE:CRM) shares on July 20 by Gregg Moskowitz at Mizuho, alongside a price target of $260.

Based in San Francisco, California, salesforce.com, inc. (NYSE:CRM) is an application software company. The company has introduced many AI solutions and incorporated them into its products like Service Cloud and Sales Cloud.

salesforce.com, inc. (NYSE:CRM) had 136 hedge funds long its stock in the first quarter. Their total stake value was $9.1 billion.

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

Number of Hedge Fund Holders: 220

There were 220 hedge funds long Meta Platforms, Inc. (NASDAQ:META) in the first quarter, with a total stake value of $25.1 billion.

Meta Platforms, Inc. (NASDAQ:META) is based in Menlo Park, California. It has been actively involved in the AI field, now owning an AI laboratory by the name of Meta AI, which is working on developing different forms of AI, improving augmented reality and artificial reality tech, and more.

Ella Ji at China Renaissance upgraded Meta Platforms, Inc. (NASDAQ:META) from Hold to Buy on July 28 while announcing a $380 price target on the stock.

Wedgewood Partners made the following comments about Meta Platforms, Inc. (NASDAQ:META) in its second-quarter 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) was the top contributor to performance during the quarter. The Company managed to grow adjusted expenses more in line with revenue growth, which helped re-establish managements credibility with investors with respect to future profitability and returns. The Company also guided to accelerated revenue growth as product investments are beginning to bear fruit relative to easier comparisons from a year ago. Meta has been at the forefront of investing in some of the most valuable artificial intelligence IP extant, particularly with its ranking and recommendation systems that are in use across its suite of user-facing products and advertiser-facing tools. Despite the recent frenzy of attention around “Gen-AI,” Meta has been researching and developing generative-AI tools for years, so we don’t expect to see a large ramp up in expenses around this phenomenon. Although we trimmed Meta as positions reached our maximum weighting, it ended the quarter as our largest holding.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 243

Amazon.com, Inc. (NASDAQ:AMZN) is based in Seattle, Washington. The company has been making moves in the AI sector through its Amazon Web Services cloud business, which is now offering a complete set of AI and machine learning services. It is also working on developing its own AI chips.

Amazon.com, Inc. (NASDAQ:AMZN) was seen in the portfolios of 243 hedge funds in the first quarter, with a total stake value of $25.8 billion.

A Market Outperform rating was reiterated on Amazon.com, Inc. (NASDAQ:AMZN) shares by Nicholas Jones at JMP Securities on July 18, alongside a $140 price target.

This is what The Ithaka Group said about Amazon.com, Inc. (NASDAQ:AMZN) in its second-quarter 2023 investor letter:

“Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN) has evolved from its early roots as an online bookstore to become one of the world’s largest eCommerce retailers. At the end of 2022 Amazon stood poised to capture ~40% of all US e-commerce sales, representing five times more share than the next closest competitor. In addition to eCommerce, Amazon Web Services (“AWS”) has become the market leader in outsourced cloud infrastructure. Further, Amazon Advertising is garnering significant share in digital advertising, particularly product placement ads, thanks to consumers beginning their product searches on Amazon’s site. Despite providing tepid forward guidance on its 1Q23 earnings call, Amazon’s stock appreciated on the back of increased confidence the company would be able to contain expenses and push operating margins above prior peaks in the near-to medium term.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

Microsoft Corporation (NASDAQ:MSFT) is a tech company based in Redmond, Washington. Its AI moves include the Bing AI chatbot, among other solutions. It has been expanding its suite of Accessible-Artificial-Intelligence-as-a-Service capabilities and announcing plans to upgrade Azure Cognitive Services and Azure Applied AI services.

In the first quarter, Microsoft Corporation (NASDAQ:MSFT) had 289 hedge funds long its stock. Their total stake value was $57.9 billion.

Oppenheimer’s Timothy Horan reiterated an Outperform rating and a $410 price target on Microsoft Corporation (NASDAQ:MSFT) shares on July 28.

L1 Capital said the following about Microsoft Corporation (NASDAQ:MSFT) in its second-quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is a clear and substantial beneficiary of AI – not only through its investment in OpenAI/ChatGPT but through the incorporation of AI into core Microsoft products and services, and increasingly through Azure (Microsoft’s cloud computing business) providing ‘AI-as-a-service’. At this stage we don’t know what the long-term financial benefits of AI will be to Microsoft, but we have confidence that it will be meaningful, that barriers to competition are increasing and that Microsoft is worth more today than it was 12 months ago. That said, Microsoft’s share price has increased 33% (in U.S. dollars) over the past year, and we no longer consider the company to be undervalued in our central base case. We have started to trim our investment in Microsoft, although it remains one of the Fund’s largest positions.”

See also 20 Best AI Chrome Extensions for 2023 and 10 Best Semiconductor Stocks To Buy For The AI Boom.