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AI Stocks: 9 Biggest Companies in 2024

Artificial intelligence (AI) may be an emerging technology, but there are plenty of billion-dollar companies in this space.

As the market has grown over the past few years, AI technology has made strong inroads into several key industries, including logistics, manufacturing, finance, healthcare, customer service and cybersecurity.

While AI-driven advancements in robotics have received the most press in recent years, the latest buzz has centered around OpenAI’s ChatGPT. This intelligent chatbot shows how quickly generative AI is advancing, and has attracted the attention of heavyweight technology companies such as Microsoft (NASDAQ:MSFT), which has reportedly invested billions of dollars in the privately held OpenAI. Alphabet (NASDAQ:GOOGL) has also released its own AI chat tool, Google Gemini.

On a global scale, Fortune Business Insights predicts that the AI industry will experience a compound annual growth rate of 20.2 percent between 2024 and 2032 to reach a market value of more than US$2.74 trillion.

American AI stocks

According to Tracxn Technologies, the number of US AI companies has more than doubled since 2017 with over 70,700 companies working in the sector today.

One of the major factors fueling growth in the American AI market, states Statista, is “the growing investments and partnerships among technology companies, research institutions, and governments’.

Below are three of the top US AI stocks.

1. Microsoft (NASDAQ:MSFT)

Company Profile

Market cap: US$3.134 trillion; share price: US$421.74

In addition to the reported billions Microsoft is committed to investing in OpenAI, the technology behemoth has built its own AI solutions based on the chatbot creator’s technology: Bing AI and Copilot. OpenAI officially licensed its technologies to Microsoft in 2020.

An update to Windows 11 in 2023 integrated Bing into the operating system’s search bar, allowing users to interact with the chatbot directly with Microsoft’s Edge browser, Chrome and Safari.

Microsoft’s moves into generative AI have translated into higher revenues for its Azure cloud computing business, and a higher market capitalization as the tech giant pushed past the US$3 trillion mark in January 2024. The company is also expected to unveil its first AI PC this year.


Company Profile

Market cap: US$2.215 trillion; share price: US$866.11

The global leader in graphics processing unit (GPU) technology, NVIDIA is designing specialized chips used to train AI and machine learning models for laptops, workstations, mobile devices, notebooks, and PCs. The company is partnering with a number of big name tech firms to bring a number of key AI products to market.

Through its partnership with Dell Technologies (NYSE:DELL), NVIDIA is developing AI applications for enterprises, such as language-based services, speech recognition and cybersecurity. The chip maker has been instrumental in the build out of Meta Platforms’ (NASDAQ:META) AI supercomputer called the Research SuperCluster, which reportedly uses a total of 16,000 of NVIDIA’s GPUs.

Most recently, NVIDIA and the Taiwan Semiconductor Manufacturing Company (NYSE:TSM) have developed the world’s first multi-die chip specifically designed for AI applications: the Blackwell GPU. Blackwell’s architecture allows for the increased processing power needed to train larger and more complex AI models.

NVIDIA’s AI ambitions were on full display at its GPU Technology Conference in March where CEO Jensen Huang presented his company’s plans to build humanoid robots, known as Project GR00T. “Building foundation models for general humanoid robots is one of the most exciting problems to solve in AI today,” stated Huang in his keynote presentation.

3. Alphabet (NASDAQ:GOOGL)

Company Profile

Market cap: US$1.967 trillion; share price: US$158.92

Alphabet holds court with both Microsoft and NVIDIA as part of the tech sector’s Magnificent 7, and its foray into AI has also brought the tech giant much success. As of April 12, Alphabet’s market cap looks set to surpass the US$2 trillion mark.

It would seem investors still remain confident in the potential for growth in Alphabet’s AI ventures despite its hiccups in the rollout of its subsidiary Google’s AI chatbot Gemini, formerly called Bard. “While the headlines haven’t been favorable, Google’s role in generative AI products will present massive growth opportunities for the stock,” said Sylvia Jablonski, chief executive officer at Defiance ETFs.

In early April, Google introduced a custom AI chip designed for its cloud services customers. Set to be delivered later this year, the technology uses British semiconductor company Arm Holding’s (NASDAQ:ARM) AI architecture. In the same week, Google revealed its new A3 Mega AI processor based on NVIDIA’s H100 Technology.

Canadian AI stocks

Recognized as a world-leading AI research hub, Canada ranks fifth out of 54 countries in the Global AI Index. Since 2017, the Canadian government has invested hundreds of millions of dollars into accelerating the research and commercialization of AI technology in the country through the Pan-Canadian Artificial Intelligence Strategy.

Recent research by IBM (NYSE:IBM) says Canadian businesses are increasingly adopting AI, with 37 percent of IT professionals in large enterprises reporting that they have deployed the technology in their operations.

Below are three of the top Canadian AI stocks.


Company Profile

Market cap: US$33.238 billion; share price: US$143.45

Montreal-based CGI is among the world’s largest IT systems integration companies, and offers a wide range of services, from cloud migration and digital transformation to data analysis, fraud detection, and even supply chain optimization. Its more than 700 clients span the retail, wholesale, consumer packaged goods and consumer services sectors worldwide.

Through a partnership with Google, CGI is leveraging the Google Cloud Platform to strengthen the capabilities of its CGI PulseAI solution, which can be integrated with existing applications and workflows.

CGI is aggressively working to expand its generative AI capabilities and client offerings, and reportedly is planning to invest US$1 billion into its AI offerings. In early March, the company launched Elements360 ARC-IBA, an AI powered platform for brokers and insurers to settle accounts in the UK broking industry.

2. OpenText (TSX:OTEX)

Company Profile

Market cap: C$13.366 billion; share price: C$48.58

Ontario-based OpenText is one of Canada’s largest software companies. The tech firm develops and sells enterprise information management software. Its portfolio includes hundreds of products in the areas of enterprise content management, digital process automation and security, plus AI and analytics tools. OpenText serves small businesses, large enterprises and governments alike.

OpenText’s AI & Analytics platform has an open architecture that enables integration with other AI services, including Google Cloud and Azure. It can leverage all types of data, including structured or unstructured data, big data and the internet of things (IoT) to quickly create interactive visuals.

In January, OpenText launched its Cloud Editions 24.1, which includes enhancements to its OpenText Aviator portfolio. ‘Leveraging AI for impactful results depends on reliable data – without it, even the most skilled data scientists will struggle,” stated OpenText CEO and CTO tMark J. Barrenechea. “By expanding the Aviator portfolio in conjunction with our world class information management platform, Cloud Editions 24.1 empowers customers with the tools and insights needed to get ahead.’

3. Descartes Systems Group (TSX:DSG)

Company Profile

Market cap: C$8.9 billion; share price: C$104

Descartes Systems Group provides on-demand software-as-a-service (SaaS) solutions. The multinational technology company specializes in logistics software, supply chain management software and cloud-based services for logistics businesses.

AI and ML enhancements to Descartes’ routing, mobile and telematics suite are helping the company’s customers optimize fleet performance. “AI and ML are perfect extensions to our advanced route optimization and execution capabilities,” said Ken Wood, executive vice president at Descartes. “From dynamic delivery appointment scheduling through planning and real-time route execution, we’ve used AI and ML to improve our ability to deliver the next level of fleet performance for customers.”

Australian AI stocks

AI investment in Australia is expected to reach AU$5.7 billion in 2026, according to research firm IDC. The biggest spenders when it comes to AI in Australia are the banking industry, the federal government, professional services and retail.

Below are three of the top Australian AI stocks.

1. Xero (ASX:XRO)

Company Profile

Market cap: AU$18.451 billion; share price: AU$121.96

New Zealand-based technology company Xero provides cloud-based accounting software for small and medium-sized businesses. The company’s product portfolio also includes the Xero Accounting app, Xero HQ, Xero Ledger, Xero Workpapers and Xero tax tools.

Xero has made a number of AI enhancements to its platform in recent years, including bank reconciliation predictions that save time and reduce errors, and Analytics Plus, a suite of AI-powered planning and forecasting tools.

In March, the company launched its Gen AI assistant, named ‘Just Ask Xero’ or JAX. Some of its features include the automation or streamlining of repetitive and time-consuming tasks; the ability to anticipate tasks based on previous user actions and the ability to make cashflow projections on request.

2. TechnologyOne (ASX:TNE)

Company Profile

Market cap: AU$5.213 billion; share price: AU$16.23

TechnologyOne is another large enterprise technology software firm in Australia. In fact, it is the country’s largest enterprise resource planning SaaS company. TechnologyOne has a client base of over 1,200, including customers in the government, education, health and financial services sectors across Australia, New Zealand and the UK. The company’s research and development center is targeting cloud-based technology, AI and ML.

TechnologyOne recently announced its 2023 financial results, highlighting that it saw record profits for the 14th year. The company’s SaaS annual recurring revenue was up 22 percent and its after-tax profit was up 16 percent. TechnologyOne attributes the strong results to robust demand for the company’s global SaaS enterprise resource planning solution. TechOne attributed its success to the large number of major deals it completed in the government sector over the period.

3. Brainchip Holdings (ASX:BRN)

Company Profile

Market cap: AU$647.603 million; share price: AU$0.345

Global technology company BrainChip Holdings has developed and commercialized a type of edge AI that simulates the functionality of the human neuron. The company’s neuromorphic processor, Akida, enables the deployment of edge computing across several applications, including connected cars, consumer electronics and industrial IoT.

BrainChip partnered with AI-based video analytics solutions provider CVEDIA in May 2023 to further develop edge AI and neuromorphic computing. The CVEDIA-RT platform for video analytics will be integrated with BrainChip’s Akida neuromorphic IP. The technology has applications in security and surveillance, transportation, information technology services and retail.

The company has also partnered with MYWAI, a leader artificial intelligence-of-things (AIoT) solution provider. They will leverage BrainChip’s Akida, with MYWAI’s AIoT Platform for equipment-as-a-service. “The partnership is expected to accelerate the adoption of Edge AI in the industrial and robotic sectors and generate significant value for both companies and their customers,” stated the press release.

FAQs for AI stocks

Which company is leading the AI race?

Google and Microsoft are battling it out for king of the AI hill. While a study from digital marketing firm Critical Mass shows that consumers believe Alphabet’s Google is leading the AI race, analysts are pointing to Microsoft as the clear frontrunner. Microsoft stands to benefit in a big way from its billions of dollars investment in OpenAI’s ChatGPT as advancements in generative AI may have the potential to increase the company’s revenues for its Azure cloud computing business.

Which country is doing best in AI?

North America is the global hotspot for advancements in AI technology and is home to the majority of the world’s largest AI providers. Of the countries in this region, Canada’s AI industry is showing the fastest growth, according to a report by Markets and Markets. Swiss-based CRM firm InvestGlass positions the US as the primary hub for AI development, and many of the world’s leading tech giants are headquartered there. According to the firm, China comes in a close second.

What is Elon Musk’s AI company?

In November 2023, Elon Musk launched Grok, a new AI technology company based in Nevada. While not much is known about the company yet, Musk said he is starting it as a ‘third option’ to ChatGPT and Google Gemini; its product will be named TruthGPT.

Does Tesla have its own AI?

Tesla (NASDAQ:TSLA) has developed proprietary AI chips and neural network architecture. The company’s autonomous vehicle AI system gathers visual data in real time from eight cameras to produce a 3D output that helps to identify the presence and motion of obstacles, lanes and traffic lights. The AI-driven models also help autonomous vehicles make quick decisions. In addition to developing autonomous vehicles, Tesla is working on bi-pedal robotics.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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