Best AI stocks to own in 2023
- Daniel Newman names IBM and ServiceNow as top AI stocks.
- He says Nvidia is another one of the best AI stocks to own in 2023.
- He defended his stocks picks today on CNBC's "Squawk Box".
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Artificial Intelligence has been the buzz word in financial markets ever since Microsoft announced its multibillion-dollar investment in ChatGPT (read more).
According to Futurum Group’s Daniel Newman, following are the best AI stocks to play the said arms race.
Newman likes IBM and ServiceNow
Newman is convinced that artificial intelligence has numerous enterprise applications. To That end, he recommends that investors own names like IBM (NYSE: IBM) and ServiceNow Inc (NYSE: NOW).
We’ll see a move from this open internet to data that resides proprietary, inside of companies. So enterprise applications and companies like IBM and ServiceNow that can build workflows and automations [could benefit].
IBM was recently reported to have built a magnificent AI supercomputer in the cloud to efficiently and effectively train its massive AI models.
IBM stock is currently down about 8.0% for the year.
Nvidia is the best AI stock to own in 2023
Nonetheless, one of the best AI stocks to own in 2023, as per Newman, is Nvidia Corporation (NASDAQ: NVDA) that issues upbeat guidance for its current quarter last night as Invezz reported HERE. On CNBC’s “Squawk Box”, the Futurum Group CEO said:
Nvidia is infrastructure company that’ll put a lot of compute into data centres. It’ll enable this next generation arms race. They’re trying to up the performance while lowering power utilization to make these models more efficient.
Nvidia Corporation is calling for up to $6.63 billion in revenue this quarter – well ahead of $6.31 billion that analysts had anticipated.
Newman’s constructive view on NVDA is in line with Wall Street that also currently recommends buying Nvidia stock.