The Best ASX AI Stocks
to buy Now In
April 2024

Check out our Industry Experts’ report and
analysis on the Best AI Stocks right now on the ASX

The Best ASX AI Stocks to buy Now In April 2024

Check out our Industry Experts’ report and analysis on the Best AI Stocks right now on the ASX

How to Identify the Best Artificial Intelligence Stocks

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Assess the financial stability and growth potential of the AI company. Look for companies with solid revenue growth, profit margins, and manageable debt levels.

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Evaluate the leadership team and the company's expertise in AI technology. A strong team with a proven track record in the industry is more likely to drive success.

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Analyze the specific AI applications the company offers. Look for companies that cater to high-demand industries and have diversified AI products and services.

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Consider the company's market share in the AI sector and its competitive advantage over other players. A company with a substantial market share and a unique offering is more likely to thrive.

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Assess the company's growth prospects and its ability to adapt to emerging technology trends. AI is an ever-evolving field, and companies that stay ahead of the curve will be more likely to succeed.

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Why Invest in AI Stocks?

Investing in AI stocks can be an attractive option for several reasons.

First and foremost, AI's impact on various industries is undeniable. From healthcare to finance, AI applications are becoming increasingly integral to business processes, offering more efficiency and precision. As AI continues to be integrated into our everyday lives, the demand for AI-related products and services is only expected to grow, providing a promising outlook for AI stocks.

Secondly, the potential for substantial returns on investment cannot be overlooked. With AI technology continuously evolving and emerging technologies being developed, AI stocks have the potential to experience significant growth over time.

Early investors in established AI software companies have already reaped the benefits, and as AI continues to expand its reach, new investment opportunities are likely to arise. Furthermore, AI stocks offer diversification benefits to an investment portfolio. By investing in companies focused on AI technology, investors gain exposure to a sector that is relatively independent of the broader economic trends.

Even during economic downturns, AI technology is likely to remain in high demand, making AI stocks a valuable addition to any well-balanced portfolio.

The Rise of Large Language and Deep Learning Models in AI Stocks

One of the most significant advancements in AI technology has been the development of large language models.
These sophisticated AI systems, based on machine learning and deep learning algorithms, have the capability to understand, interpret, and generate human language at an unprecedented level of human intelligence. Companies like OpenAI and Google's DeepMind have made significant strides in developing some of the most prominent deep AI models, such as GPT-3 and BERT. The rise of large language models has opened up new opportunities for AI stocks to buy. These companies, at the forefront of AI research and development, identify companies that are capitalizing on the potential applications of language models across various industries.

From improving customer service through chatbots to enhancing language translation services, large language models are transforming the way businesses interact with customers and streamline operations. Artificial Intelligence (AI) has rapidly emerged as a transformative technology, reshaping various industries and revolutionizing the way we live and work.

As AI's potential continues to grow, investors are keen to gain exposure to this cutting-edge sector. In this article, we will explore the world of AI stocks, their significance in the market, top Artificial Intelligence companies, and why investing in AI stocks may be a smart move for the future.

Investing in AI Stocks: Capitalizing on Large Language Models and Beyond

Large language models have proven to be incredibly versatile, capable of performing a wide range of tasks. They can understand context, generate human-like responses, and even summarize complex information. This versatility opens up a plethora of applications across the AI space of industries, from content creation and social media management to virtual assistants and medical diagnoses.

Companies that specialize in developing large language models are at the forefront of integrating an amount of AI innovation. Their cutting-edge technology and continuous research and development efforts position them as attractive AI stocks to buy.

As large language models become more sophisticated and capable, their adoption is expected to accelerate, leading to potential revenue growth for the companies invested in this technology.

Our Top 3 ASX AI Stocks

NextDC (ASX:NXT)

NextDC (ASX:NXT) is the biggest data centre stock on the ASX and the second biggest in Oceania after Equinix. It has recorded spectacular growth since its listing in 2010 – growing its market cap from $80m to over $6bn! And it is continuing to build up its base of data centres, betting that AI will require a lot more digital infrastructure going forward. Although it is not yet profitable, it generated $362m in revenue in FY23, a figure up 25% from the year before. It has 1,820 customers and 18,816 interconnections.

Unith (ASX:UNT)

Unith has a platform called Talking Heads that creates digital avatars that can hold one-on-one conversations with a business’ customers. The company is in the early stages of commercialisation, but has some impressive names as early clients including a (currently anonymous) Big 5 Tech company and the Alliance for Public Health in Ukraine.

BetaShares Global Robotics and AI ETF (ASX:RBTZ)

BetaShares Global Robotics and Artificial Intelligence isn't a company. Rather it is an ETF (Exchange Traded Fund). It is like buying an entire portfolio of shares in just a single trade. It owns shares in global companies, such as Nvidia and Intuitive Surgical – with this pair accounting for nearly 25% of the current portfolio. This ETF gained over 25% in the 12 months to April 11, 2024 – impressive for an ETF, in our view.

Our Top 3 ASX AI Stocks

NextDC (ASX:NXT)

NextDC (ASX:NXT) is the biggest data centre stock on the ASX and the second biggest in Oceania after Equinix. It has recorded spectacular growth since its listing in 2010 – growing its market cap from $80m to over $6bn! And it is continuing to build up its base of data centres, betting that AI will require a lot more digital infrastructure going forward. It is building its first offshore data centres, forecasting $690m in capex spend over the next 12 months. Although it is not yet profitable, it generated $362m in revenue in FY23, a figure up 25% from the year before. It has 1,820 customers and 18,816 interconnections.

Unith (ASX:UNT)

Unith has a platform called Talking Heads that creates digital avatars that can hold one-on-one conversations with a business’ customers. The company is in the early stages of commercialisation, but has some impressive names as early clients including a (currently anonymous) Big 5 Tech company and the Alliance for Public Health in Ukrain

BetaShares Global Robotics and AI ETF (ASX:RBTZ)

Among ASX AI stocks, BetaShares Global Robotics and Artificial Intelligence is an ETF (Exchange Traded Fund). It is like buying an entire portfolio of shares in just a single trade. This fund invests in companies in Industrial Robotics and Automation, Non-Industrial Robots, Artificial Intelligence and Unmanned Vehicles and Drones. It owns shares in global companies, such as Nvidia and Intuitive Surgical – with this pair accounting for nearly 25% of the current portfolio. This ETF is up 32% in the past year – impressive for an ETF, in our view.

Our Analysis on ASX AI Stocks

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