There is a lot of buzz surrounding investing in agriculture AI stocks. Companies turn to AI technology for solutions as the world population grows and the agricultural industry faces challenges. By investing in agriculture AI stocks, investors can benefit from the potential of this technology and its potential returns.
AI has the potential to revolutionize agriculture by making it easier to regulate the surrounding environment, providing consumers with organic food, and saving farmers a lot of time and money.
AI in the agricultural industry has undergone tremendous growth due to many factors. Perhaps the most pressing reason is the shortage of skilled labor and an aging farming population. This has become an obstacle for farmers, and AI offers a plausible solution. In addition, since young people don’t find farming an interesting field of work, automated farming operations have become increasingly significant.
With the growth of nations, fewer people are engaged in agricultural activities, as compared to other industries.
AI solutions are becoming increasingly popular in agriculture for many reasons. There is a need for innovation and new opportunities to streamline production and improve efficiency. Robotics replace labor and do weeding, hay bailing, and seeding with exactness and productivity.
In the next three decades, the world’s population is forecasted to rise from 8 billion to 9.7 billion by 2050, possibly reaching 10.4 billion by the 2080s. This surge will propel the rising demand for agricultural produce.
As a result, agriculture AI stocks are expected to grow exponentially as more companies invest in this technology. The immense growth potential could result in significant profits for those who invest early on. With the right strategy, investors can capitalize on this emerging trend and reap the rewards from their investments in agriculture AI stocks.
| Ticker | Company | Price |
| MSFT | Microsoft | $248.02 |
| IBM | IBM | $128.39 |
| AMZN | Amazon | $92.82 |
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is one of the most influential companies in the world. It also takes pride in developing and supporting software, services, devices, and solutions.
A major part of Microsoft’s success lies in its Azure platform, which provides a comprehensive suite of AI-powered solutions for various industries.
By leveraging Microsoft’s Azure platform, French multinational food-products corporation Danone and Microsoft collaborated to introduce the AI Factory for AgriFood. The program aims to support sustainable food and regenerative agriculture across France.
Danone and Microsoft will collaborate to provide a hub for AI startups in the agri-food sector. AI startups will have three months of acceleration during this collaboration, helping them develop their business infrastructure and providing a great learning experience.
This program is the third series about implementing AI solutions within business situations.
Whenever there is talk about Microsoft in investing circles, there is sure to be talk about its potential acquisition of Activision (NASDAQ:ATVI). There is often discussion on the future of the two companies.
The all-cash transaction deal valued at $68.7 billion is subject to several regulatory hurdles. Analyst Dan Ives recently weighed in on the merger, saying he believes it will go through. In raising his per-share price target on Microsoft to $290, Ives said the software giant had seen a “steady” flow of cloud computing deals since December.
Shares are up just 4.42% in 2023, making MSFT attractive among agriculture AI stocks.
International Business Machines (IBM)
International Business Machines (NYSE:IBM) has made significant contributions to the advancement of AI, from its early developments in natural language processing and computer vision to more recent advances in deep learning and machine learning.
In addition, IBM has innovated in developing AI-based products and services such as Watson, an AI-driven cognitive computing system. As AI continues to evolve and become more prevalent in our society, IBM is poised to remain a leader in this field for many years.
It is also applying AI to precision agriculture in India and various other countries to help resolve food shortage and draught issues, which the government is trying to tackle.
In 2022, IBM’s revenue was up 6% (and 12% in constant currency terms), and its adjusted earnings per share jumped 15%. It also generated a free cash flow of $9.3 billion.
In 2023, IBM anticipates its revenue will stay consistent with its mid-single-digit forecast, aided by the weakening of currency headwinds in the second half. This year’s FCF estimate is $10.5 billion, representing a growth of about 13%.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) is one of the world’s most successful companies, and its success is largely due to its innovative approach to technology. It has disrupted the retail industry by introducing a wide range of products and services, from online shopping to cloud computing. Its use of AI has enabled it to achieve unprecedented efficiency, accuracy, and customer satisfaction.
Amazon’s use of AI ranges from powering its recommendation engine to using machine learning for fraud detection. With the help of AI, Amazon continues to revolutionize how people shop and do business.
Companies can leverage the AWS or Amazon Web Services facility to use machine learning, data analytics, storage, security, etc. This service provides the necessary infrastructure for businesses to succeed.
The cloud computing service known as AWS has had a hand in developing predictive weather models as well as other sophisticated agricultural methods to lower the risk of crop loss due to unpredictable weather.
In addition to these services, AWS has powerful tools that assist businesses in building and managing their infrastructure, making it an attractive option for many companies.
On Feb. 22, Amazon completed its latest ambitious venture, the deal to purchase One Medical, an operator of a membership-based primary care platform. It is all part of a larger strategy for Amazon to grab market share in the healthcare space.
However, the markets did not respond aggressively to the move. Shares are up 9.25% in the year thus far.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
