A couple of weeks ago, I pointed out three compelling Artificial Intelligence (AI) stocks you may not have even known about. There are certainly more than three such artificial intelligence prospects though. So, today I’d like to introduce you to three more possibilities we just didn’t have the time or room to explore with the first go-around.
Like last time, the goal isn’t to state the obvious. Most investors fully understand that Nvidia Corporation (NASDAQ:NVDA) makes the hardware that powers most AI applications while International Business Machines Corporation (NYSE:IBM) is arguably doing the most to put artificial intelligence to practical use. Our goal is to uncover AI stocks you simply may have never known about.
In no particular order:
Artificial Intelligence Stock 1: Box Inc
Those who know Box Inc (NYSE:BOX) may be a bit surprised to see it earn a spot on a list of AI stocks to consider, since it’s not directly in the artificial intelligence arena. But, CEO Aaron Levie has repeatedly — and accurately — made the point that Box is well-positioned to ride the rising tide of artificial intelligence.
In simplest terms, Box allows organization to effectively manage documents and data, share files and collaborate via the cloud.
It’s not AI. It’s not AI in the least. But, late last year Levie launched a toolkit called Box Skills that will allow customers to apply artificial intelligence tools of their choice — apps from Microsoft Corporation (NASDAQ:MSFT) and IBM, just to name a couple — to extract more use out of all the data a company’s employees were uploading via Box. The more the world embraces AI, the more customers Box can garner.
Some industry experts have taken notice too. In April, former Facebook, Inc. (NASDAQ:FB) executive and now technology fund manager Chamath Palihapitiya said Box “is a business that is incredibly cheap and undervalued with incredibly low churn and unbelievable margin of safety,” pegging it as his favorite among AI stocks.
Artificial Intelligence Stock 2: NXP Semiconductors NV
Much like Box, NXP Semiconductors NV (NASDAQ:NXPI) isn’t seen or known as an artificial intelligence play. But, it’s more involved in the industry than one might realize.
As the name suggests, the Netherlands-based company makes (among other things) semiconductors. It’s perhaps best known for the strides it’s made in connected automobile and wireless technologies.
That, of course, puts NXP in the proverbial driver’s seat of autonomous vehicles, where it’s thrived as a supplier of sensors, radar, and all the AI computing power needed to make them work. Its product lineup gives NXP more than a fair shot at what’s expected to be a market worth more than $120 billion by 2023.
The kicker: NXP Semiconductors was named Compass Intelligence’s third-best company among organizations working on artificial intelligence chipset innovation. The accolade recognizes all that NXP has done for AI, even though much of it has gone unnoticed.
Artificial Intelligence Stock 3: DXC Technology Co
Last but not least, there’s a good chance that investors who already own DXC Technology Co (NYSE:DXC) may not fully understand what it does. That’s because what it offers is so complex and narrowly-specific, only its customers know, or care.
Regardless, it’s an artificial intelligence play. And it’s a good one in that it brings AI into a workplace where AI has been needed, but not readily available.
DXC Technology is, essentially, a company that helps other organizations make better use of technology when that client company has no idea where to start. It’s helped corporations move data into the cloud, set up human resources platforms and even developed military training systems, just to name a few.
As for its part of the artificial intelligence pie though, its January unveiling of its Agile Process Automation, or APA, is a fine example of what it can do. The platform allows a manufacturer to “train” a robotic production line using artificial intelligence. DXC Vice President Mahesh Shah put it at the time, “We are now able to go beyond traditional limitations, helping our clients leap into a new era of speed, productivity and efficiency.”
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley.