Best artificial intelligence stocks to buy in 2021

The AI sector includes lots of young and innovative companies. Here our experts choose the best five AI stocks to invest in right now and explain why you should own them.
By: James Knight
James Knight
When he isn’t at work, James is an avid trader and golfer who likes to travel. He once fed,… read more.
Updated: Sep 22, 2021
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This page covers the best artificial intelligence and machine learning companies in the world. Our experts have combed through all the options on the market and picked out the top performers so you don’t have to.

What are the top artificial intelligence stocks to buy?

Here are the best five AI companies according to our expert analysis. The most up to date price information for every stock is available if you follow the links in the table below. Alternatively, scroll down to find a more detailed explanation of why each has been chosen.

#Stock tickerCompany name
1PLTRPalantir Technologies
2AIC3.ai
3CRMSalesforce
4AMDAdvanced Micro Devices
5DOCUDocusign
List selected by our team of analysts, updated 22 September 2021.

1. Palantir Technologies (NYSE: PLTR)

Palantir uses artificial intelligence to analyse data. Founded in 2003, it’s a company that often works with government agencies like the CIA and US Department of Defence to help them train AI algorithms with large data sets.

The company has only been public since late 2020 but its stock price has already doubled since then. Because of the way it operates in the background and who it works with, it’s not that well known amongst the wider population. However, it has begun expanding its customer base to include clients in the financial and healthcare sectors as well.

Alongside growing the base, Palantir’s revenues have been on the up and up as well. It operates in a niche area and offers data services to companies that don’t have the funding or the expertise to create it themselves. That puts it in a great spot to keep making money and means there’s an opportunity for investors to get in on the ground floor. 

2. C3.ai (NYSE: AI)

C3.ai is a software company that specialises in business solutions. It uses artificial intelligence to create more efficient business practices, such as streamlining supply chains and improving reliability. First set up in 2009, C3 is another young company in stock market terms, having only been public since the end of 2020.

That time on the public markets has been quite rocky. C3’s stock price fluctuated between highs of $150 a share and lows of $50 over just a few months. Those results, however, bear little resemblance to the company’s performance, which has continued to be good.

While the stock price has been jumping around, the company reported positive financial results. It has increased its revenue, particularly from subscriptions which is a good indicator of long term success, and added new partnerships in Asia. Like Palantir, it could be a good time to invest in C3.ai before the rest of the market catches up.

3. Salesforce (NYSE: CRM)

Salesforce is a cloud software company. Set up in 1999, its range of software is focused on customer service and marketing, and it’s best known for its leading customer relationship management (CRM) platform.

Like many cloud-based services, Salesforce did well out of the lockdown as more people were forced to work from home. Having performed well for a while, its stock price went up a further 30% in the aftermath of the pandemic. 

Salesforce has teamed up with Amazon to use machine learning to improve the former’s CRM software. It also now part-owns Figure Eight, a company that uses AI to improve customer support and online search results. Both developments indicate Salesforce’s forward-thinking nature and put it in a great place to keep growing in the future.

4. Advanced Micro Devices (NASDAQ: AMD)

AMD is a semiconductor company that develops computer chips. It’s much older than the other companies on this list, having been formed all the way back in 1969. It traditionally lagged behind big names in the semiconductor industry, such as Intel, but that has changed in recent times.

The company broke through in a big way in 2019 and the stock has been on a dramatic upward trajectory ever since. It has increased by more than 500%, thanks to a convergence of the company producing higher quality chips with much more demand for things like graphics cards.

Along with the rest of its chips, AMD has a range of deep learning servers that use artificial intelligence to remove the bottlenecks that often affect regular data centres. New technology like this means AMD is set to capitalise on its big boost in popularity over the last couple of years and transform that into long term success.

5. DocuSign (NASDAQ: DOCU)

DocuSign is a software company that specialises in e-signatures. Formed in 2003 and a public company since 2017, DocuSign offers technology that lets people sign important documents digitally, from any device.

More than most, DocuSign did well out of the pandemic. With businesses forced to move most of their operations online, the need for people to sign for things online became acute. Its stock price increased by more than 200% as lockdowns took hold all over the world.

Along with its basic signature offerings, DocuSign has a much more advanced document-checking package that uses AI to scour important files for mistakes. That offers the company the opportunity to monetise a genuine enterprise-level solution that can help it make the next step in its journey.

Where to buy the best AI shares

You can buy any of the shares on this list using the brokers below. Use the links in the table to go to their website and start trading straight away, or read our detailed reviews of each platform to help you choose the right one.

1
Min. Deposit
$50
Exclusive promotion
user-score
10
Trade/invest in stocks with just $50
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
Start Trading
Description:
eToro is a multi-asset investment platform with more than 2000 assets, including FX, stocks, ETF’s, indices and commodities. eToro users can connect with, learn from, and copy or get copied by other users. Buying stocks on eToro is free and you can invest with as little as $50.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$1
Exclusive promotion
user-score
9.3
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Start Trading
Description:
Financial company driven by technology and offering all-in-one self-directed investment platform that provides excellent user experience.
Payment Methods
Full regulations list:

What is an AI stock?

Any company that incorporates artificial intelligence or machine learning software in the product or service they offer. AI is relatively new but these companies operate across a whole range of industries, from futuristic cloud software to enhancing the supply chains of traditional, old-school companies.

Are artificial intelligence shares a good investment?

They can be, although they are more risky than other industries because they are relatively unproven. Owning an AI stock is a bet on the future and you should be prepared to hold it for a while – years, rather than months – if you expect the technology to become more mainstream over time.

As with many tech stocks, AI companies are often volatile investments to hold. They might rise or fall dramatically over a short space of time as the industry is based on a lot of hype rather than real results at the moment. Keep your focus on the raw numbers: if the revenue and customer base keeps increasing, that’s a good sign if you’re in it for the long haul.

In an industry based on innovation and new technology, it’s more important than ever to keep track of the latest developments. New competition can spring up at any time and you want to be the first to know when it does. Use the links below to stay up to date with everything that happens in the AI sphere.

Latest AI news

The laboratory division, home to the original Echo and the Alexa voice assistant, is back in the news. Tech giant Amazon.com, Inc. (NASDAQ: AMZN) is working on designing and developing a series of new products and services at its Lab126 division. At a launch event which is scheduled…
Hewlett Packard Enterprise (NYSE: HPE) has announced the acquisition of cloud data protection and management leader Zerto for a cash consideration of $374 million. This acquisition gives HPE’s GreenLake edge-to-cloud platform a proven solution in the burgeoning data security industry. Further, it will propel HPE’s storage operations into…
Facebook Inc. (NASDAQ: FB) began testing a new virtual-reality teleworking tool on Thursday, allowing users of its Oculus Quest 2 headsets to conduct meetings as avatars versions of themselves. The Horizon Workrooms beta test comes as many organizations continue working from home after the pandemic shut down traditional…
Palantir Technologies Inc. (NYSE: PLTR) shares jumped 9% pre-market after the data analytics firm topped Wall Street revenue estimates for Q2 and offered a buoyant outlook for the current quarter. The company reported a revenue jump of 49% YoY to 376 million against $352.3 projected by analysts. In…
The American self-driving vehicle technology company Aurora Innovation Inc is merging with the special purpose acquisition company (SPAC) Reinvent Technology Partners to list its shares on the Nasdaq Stock Exchange under the ticker AUR. CEO Chris Urmson’s comments on CNBC’s “TechCheck” The SPAC listing is expected to raise $2.5 billion…
Intel Corp (NASDAQ: INTC) announced on Wednesday organizational changes with appointments into major leadership roles as the company seeks to enhance innovation and execution in critical areas of operation.  The company’s CEO, Pat Gelsinger, announced the appointment of two new technical leaders into the executive team and various…

Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

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James Knight
Financial writer
When he isn’t at work, James is an avid trader and golfer who likes to travel. He once fed, rode, and ate an ostrich all on… read more.
Jayson Derrick
Lead News Editor
Jayson lives in Montreal with his wife and daughter, loves watching hockey, and is on a lifelong quest to perfect the art of Texas style BBQ. read more.