With technology pushing the boundaries of automation, the AI arena has witnessed significant growth, evolving from smart gadgets to autonomous driving and much more.
AI is essentially a group of technologies that enable machines to emulate human thinking. Some of the technologies included within the AI spectrum are ML, natural language processing (NLP), predictive analysis, image recognition and robotics.
AI technology is already creating revolutionary changes in the way enterprises operate. Moreover, rampant adoption of technologies like IoT and 5G present significant growth opportunity for the AI space.
The direct beneficiaries of the technology are software companies and robotic process automation industries, primarily owing to their first-mover advantage. Moreover, AI is playing a vital role in sectors like healthcare, hi-tech engineering, oil and gas as well as financial and banking sectors.
According to an insight from InvestorPlace, AI spending is likely to reach $383.5 billion by 2020. Another data from Investment U highlights that the AI market is expected to reach $208.49 billion by 2025 witnessing a CAGR of 32.6%.
AI Presents Investment Opportunities
Courtesy of strong growth prospects, companies that invest in AI opportunities have spiked interest amongst investors. Blue-chip companies such as Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) and Amazon (AMZN - Free Report) are already standing out as AI-intensive companies, making the technology pervasive across most of their product lines.
Nevertheless, smaller companies are also adopting AI solutions to adapt themselves with the changing digital landscape. In fact, many non-blue-chip companies are adhering to AI to reduce cost of operations, create unique offerings and attract market share.
On that note, we are highlighting some of the less commonly known stocks that have been associating themselves with AI and are likely to benefit from growth prospects ahead.
Offbeat AI Bets to Gain From in 2020
Synaptics (SYNA - Free Report) is engaged in designing and marketing human interface solutions such as touchpads for notebook computers, touch screen controllers for handsets and biometric fingerprint sensors for mobile devices. The company is utilizing smart edge AI in its offerings. In fact, the company’s AudioSmart offerings include fully integrated SoCs comprising neural network acceleration, a proprietary wake word engine and highly-advanced far-field voice processing.
The company flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Synaptics Incorporated Price and Consensus
Commvault (CVLT - Free Report) , another Zacks Rank #1 stock, provides data management solutions for high-performance data protection, universal availability and management of information on complex storage networks. The Commvault machine learning algorithms and AI processes identify patterns and detect anomalies from file activity and change rates. This helps alerting clients when a potential threat or issue tis detected.
CommVault Systems, Inc. Price and Consensus
Box (BOX - Free Report) , with a Zacks Rank #2 (Buy), offers cloud management solutions for content automation, application development and security. Through the Box Skills solutions platform, the company provides clients with advanced AI solutions that offer structure and extract insights from information. The platform leverages third-party AI and machine learning services to process and extract information from files once they're uploaded to the ECM.
Box, Inc. Price and Consensus
Zuora, Inc. (ZUO - Free Report) , also carrying a Zacks Rank 2, is a cloud-based subscription management solutions provider. Earlier in 2019, the company partnered with Ricoh for offering the RICOH IM Series. The system leverages AI, while digitizing various documents that occur daily in business transactions and in-house operations.
In 2018, Zuora partnered with Japan-based NEC Corporation to build a subscription business platform that is based on AI and IoT components.
Zuora, Inc. Price and Consensus
Secureworks (SCWX - Free Report) , with a Zacks Rank #2, offers intelligence-driven information security solutions focused on protecting from cyber-attacks. It leverages AI in its Counter Threat Platform (CTP) to reduce the complexity of keeping enterprises safe in the digital realm. Through CTP's machine learning and analytics capabilities, organizations can make informed decisions regarding how to predict, prevent and respond to threat activity.
SecureWorks Corp. Price and Consensus
Zacks Top 10 Stocks for 2020
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