Check out the top 10 AI companies leading the charge in innovation and growth.
Numerous companies will gain from AI advancements, but a select few have made AI and automation the core of their business strategies.
Artificial intelligence, automation, and robotics are transforming nearly every industry. Significant advancements in AI technology, such as OpenAI’s ChatGPT, GitHub’s Copilot for code generation, and Google’s Gemini AI model, have become widely recognized names.
From machine learning and large language models to smart applications, digital assistants, synthetic media, and autonomous vehicles, companies not investing in AI risk falling behind. While many companies may benefit from AI, a select few have made AI and automation the core of their business. According to Argus, here are 10 of the top AI stocks to consider.
| STOCK | IMPLIED UPSIDE OVER AUG.8 CLOSING PRICE |
| Microsoft Corp. (MSFT) | 30.6% |
| Alphabet Inc. (GOOG, GOOGL) | 23.4% |
| Amazon.com Inc. (AMZN) | 23.6% |
| Nvidia Corp. (NVDA) | 42.9% |
| Meta Platforms Inc. (META) | 17.7% |
| Taiwan Semiconductor Manufacturing Co.Ltd. (TSM) | 21.5% |
| Adobe Inc. (ADBE) | 27.3% |
| ASML Holding NV (ASML) | 42.6% |
| International Business Machines (IBM) | 17.8% |
| Arista Networks Inc. (ANET) | 16.6% |
Microsoft Corp. (MSFT)
Microsoft has poured $13 billion into OpenAI and integrated ChatGPT into Bing. They’ve unified their AI copilots under the “Microsoft Copilot” brand, emphasizing a cohesive AI experience. In May, Microsoft released its first Responsible AI Transparency Report, outlining its AI practices and goals. Analyst Joseph Bonner notes that Microsoft is heavily investing in AI through internal projects and stakes in startups, with CEO Satya Nadella focusing on generative AI opportunities. Argus rates MSFT as a “buy” with a price target of $526, compared to its $402.69 close on Aug. 8.
Alphabet, the parent company of Google and YouTube, leverages AI and automation across its operations, from ad pricing and content promotion to Gmail’s spam filters. Google introduced its Bard AI chatbot in March 2023 and unveiled its most advanced AI model, Gemini, in December 2023. In May, Google launched AI Overview, offering AI-generated summaries at the top of search results. Analyst Joseph Bonner highlights that Google is integrating its Gemini AI model throughout its tech stack. Argus has a “buy” rating with a $200 price target for GOOGL stock, which closed at $162.03 on Aug. 8.
Amazon.com Inc. (AMZN)
Amazon has embedded AI across its entire business, from targeted ads and marketplace search to recommendation algorithms and Amazon Web Services (AWS). AWS provides a broad array of AI and machine learning services, including advanced text analytics, automated code reviews, and chatbots. The company is reportedly planning a $100 billion investment over the next decade to build a network of AWS data centers capable of managing significant AI workloads. Analyst Jim Kelleher notes that the focus on AI cloud services has revitalized AWS. Argus has a “buy” rating with a $205 price target for AMZN stock, which closed at $165.80 on Aug. 8.
Nvidia Corp. (NVDA)
Nvidia, a leading high-end chipmaker, provides the essential processing power for advanced AI applications. The company’s strong performance in recent years is largely attributed to its significant AI involvement. CEO Jensen Huang recently announced that Nvidia will now design and release new AI chips annually, shifting from the previous two-year refresh cycle. Analyst Jim Kelleher highlights Nvidia’s Blackwell platform, which supports generative AI on trillion-parameter large language models. Argus has a “buy” rating with a $150 price target for NVDA stock, which closed at $104.97 on Aug. 8.
Meta Platforms Inc. (META)
Meta Platforms, the parent company of Facebook and Instagram, is a leader in social media and online advertising. Meta plans to launch free AI-powered customer-relations chatbots for businesses on WhatsApp, testing CEO Mark Zuckerberg’s strategy of making AI technology freely available to gain market share and reduce competitors’ prices. Analyst Joseph Bonner notes that Zuckerberg has a history of building large user bases and successfully monetizing them. Argus has a “buy” rating and a $600 price target for META stock, which closed at $509.63 on Aug. 8.
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
Taiwan Semiconductor Manufacturing (TSMC) is the world’s largest dedicated semiconductor foundry, producing advanced AI chips for Nvidia and other leading AI chipmakers. In June, CEO C.C. Wei expressed optimism about TSMC’s future, driven by strong AI-related demand. Analyst Jim Kelleher believes the mainstream adoption of AI, along with lower inflation and a recovery in electronic device demand, will drive solid revenue growth for TSMC. The company anticipates global semiconductor market demand to increase by 10% in 2024. Argus has a “buy” rating and a $200 price target for TSM stock, which closed at $164.55 on Aug. 8.
Adobe Inc. (ADBE)
Adobe, known for its creative content software and applications for marketing and e-commerce, has seen growing customer interest in its Firefly generative machine learning model, which is integrated into platforms like Photoshop and Illustrator. The company has also infused its Sensei AI and machine learning technology into products such as Adobe Analytics, Campaign, and Target. Recently, Adobe announced it will not train its AI models on users’ content following concerns from artists about AI-generated imitations of their work. Analyst Joseph Bonner believes Adobe will continue expanding AI features across its product offerings. Argus has a “buy” rating and a $675 price target for ADBE stock, which closed at $530.24 on Aug. 8.
ASML Holding NV (ASML)
ASML specializes in photolithography systems and processing equipment essential for semiconductor fabrication, including the exclusive extreme ultraviolet lithography tools needed to produce advanced AI chips. Major customers like Taiwan Semiconductor and Samsung Electronics Co. Ltd. rely on ASML’s technology, with Nvidia depending on these companies to manufacture AI chips for Microsoft and Google’s expansive AI data centers. Analyst Jim Kelleher notes that the demand for ASML’s products is expected to remain strong due to the growth in generative AI applications and high-end edge devices. Argus has a “buy” rating and a $1,250 price target for ASML stock, which closed at $876.65 on Aug. 8.
International Business Machines (IBM)
IBM has been working for years to adapt its AI supercomputer, Watson, to transform various sectors such as healthcare, finance, law, and academia. The company offers a range of Watson AI solutions aimed at enhancing customer service, automating workflows, and predicting outcomes, while Watson Studio enables enterprises to develop their own AI applications. In June, IBM introduced several enhancements to its Watsonx AI assistant. Analyst Jim Kelleher notes that while IBM’s consulting business has faced challenges, AI and hybrid cloud sales have helped balance the scale, with AI expected to be a pivotal element in IBM’s future. Argus has a “buy” rating and a $225 price target for IBM stock, which closed at $190.94 on Aug. 8.
Arista Networks Inc. (ANET)
Arista Networks offers cloud networking solutions tailored for internet companies, cloud service providers, and enterprise data centers. Its high-performance cloud networking products and data center switches are designed to handle the demands of intensive AI workloads. The company attributed its recent sales growth, which surpassed Wall Street forecasts, to rising demand for networking equipment driven by AI applications and cloud computing. Analyst Jim Kelleher highlights Arista’s leadership in enterprise and data center cloud networking and its strong position to capitalize on the AI cloud services surge. Argus has a “buy” rating and a $390 price target for ANET stock, which closed at $334.50 on Aug. 8.