Top 3 ASX AI Stocks To Invest In Right Now!

Our Active Trades Performance in September
COMPANY NAME
ASX CODE
OPEN DATE
BUY RANGE
CURRENT PRICE
STOP LOSS
TARGET
PERFORMANCE

  • Cyclopharm (ASX:CYC)

    CYC
    March 31, 2023
    Up to $2.20
    $2.79
    $2.25
    $3.00
    70.1%

  • Weebit Nano (ASX: WBT)

    WBT
    May 17, 2022
    Up to $5.00
    $3.15
    $3.50
    $9.56
    41.9%
NAME
ASX
OPEN DATE
CURRENT PRICE
PERFORMANCE

  • Cyclopharm (ASX:CYC)

    CYC
    March 31, 2023
    $2.79
    70.1%

  • Weebit Nano (ASX: WBT)

    WBT
    May 17, 2022
    $3.15
    41.9%

Stocks Down Under’s team of Experts has put together our top ASX AI Shares Picks To Invest In Right Now!

Get our Industry Experts’ reports and recommendations, along with BUY and SELL Alerts for ASX-listed Stocks with Stocks Down Under’s Concierge. Sign up to see our trades.

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Identifying the Best Artificial Intelligence Stocks

For investors seeking to identify the best AI stocks to buy, comprehensive research and analysis are vital. The following are some essential considerations:

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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.

money-bag 1

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.

price-of-gold

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

search

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.

earth 1

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.

Identifying the Best Artificial Intelligence Stocks

For investors seeking to identify the best AI stocks to buy, comprehensive research and analysis are vital. The following are some essential considerations:

time

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

money-bag 1

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.

price-of-gold

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

Group 57

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.

earth 1

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.

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.

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.

Our Top 3 ASX AI Stocks

nextic ltd

NextDC (ASX:NXT)

NextDC (ASX:NXT) is the biggest data centre stock on the ASX and the second biggest in Oceania after Equinix.

Nextic Ltd 300x199
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.

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unith

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.

Unith 300x199Unith 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.

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betshare

BetaShares Global Robotics and AI ETF (ASX:RBTZ)

Among ASX AI stocks, BetaShares Global Robotics and Artificial Intelligence is an ETF (Exchange Traded Fund).

Betshare 300x199
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.

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Nextic Ltd

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.

Nextic Ltd
Unith

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.

And it has struggled with investor sentiment due to sovereign risk - sudden changes to the Mining Act in 2017 (including forced renegotiation of existing agreements, a mandatory 16% government shareholding, and restriction of repatriation of funds derived from mining) meant the company couldn't secure funding. Since then President John Magufuli died in 2021, things have looked up for EV1. The new President Samia Suluhu Hassan has appeared to be more mining friendly and the Company now has a Formal Framework with the state.

Unith
Betshare

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.

This makes it one of the most promising of graphite concentrate stocks on the ASX. Its share price has lagged for a couple of reasons, including the scars remaining from sovereign risk issues in Tanzania and the requirement for funding. It will need a total of US$510m and you'd be forgiven for thinking it should have secured it by now. But BKT is planning to have finance in place in the next 12 months and commence production in the first half of CY25.

Betshare

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