AI has been one of the most significant developments in the tech space, with companies focused on it flourishing. AI encompasses almost everything, from virtual assistant AI technology like Alexa to semi-autonomous vehicle systems. In fact, several companies are now using AI technologies to enhance their software and services.

 

What’s more, the coronavirus crisis, which has been disrupting many industries, has actually sped up the adoption of AI. After all, AI has touched almost every sphere, including advertising, healthcare, robotics, retail, video streaming, gaming and urban development. 

 

For instance, in retail, AI has completely changed the inventory systems, making it easier for employees to track stocks from the backrooms to the shelves. It has also helped companies adopt to the work-from home-trend by easing IT support systems. Healthcare digitalization has also increased significantly since the coronavirus pandemic, which bodes well for AI stocks.

 

And perhaps the greatest change is coming in the field of language processing, where AI is producing chatbots that more or less sound like humans. Thus, it’s no wonder that companies involved in the development, usage and marketing of AI-related technologies are poised to gain in the long run. The AI market, anyhow, is poised to see 46.2% average annual growth rate between 2019 and 2025, per Grand View Research.

 

Given such promising AI prospects, here’re four AI stocks that investors should keep an eye on.

Booz Allen Hamilton Holding Corporation (BAH Quick QuoteBAH - Free Report) primarily specializes in management and information technology, with a majority of its clients coming from government establishments, including defense department, the civil administration and the intelligence department. 

 

The company is presently working on combining data science with AI so that it can ease work for its government contract clients. Notably, the company has set up an AI-driven process automation system, specifically for the Veterans Administration, to speed up veterans’ benefits and claim compensations. Lest we forget, last year Booz Allen Hamilton launched an AI platform, Modzy, to make machine learning systems more accessible to clients. And this year, the company is working with its Federal clients to apply AI systems in solving coronavirus-related issues.

 

Booz Allen Hamilton is already seeing backlog growth, enhanced technical expertise and a strong performance in the global commercial market. The company currently has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its current-year earnings has moved up 1.4% over the past 60 days. The company’s expected earnings growth rate for the current and next year is 13.8% and 13%, respectively.

Microsoft Corporation (MSFT Quick QuoteMSFT - Free Report) is looking to make AI more accessible through cloud computing. After all, AI in the cloud is anticipated to increase at an annualized rate of 50% through 2025. Microsoft is making use of this great opportunity through its Azure cloud service.

 

Microsoft, by the way, has built a huge supercomputer for AI work, giving a new direction to its Azure cloud computing service. The machine has 85,000 processor cores boosted by 10,000 graphics chips.

 

Microsoft CEO Satya Nadella had said that the company is in the “process to democratize AI” and bring the technology to more industries such as healthcare, education and manufacturing.”

 

The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has climbed 2.4% over the past 60 days. The company’s expected earnings growth rate for the current and next year is 10.9% and 12.4%, respectively.

Stryker Corporation (SYK Quick QuoteSYK - Free Report) is one of the world’s largest medical device companies operating in the global orthopedic market. Notably, Stryker is a leader in orthopedic robots. And now more of Stryker’s customers are ordering such robots. This is because the need for robotic surgery procedures has increased amid the pandemic and along with it the need for AI in the healthcare space has shot up. Needless to say, AI for health care and Medical Mechatronics has provided the company a competitive edge in the MedTech space.

 

Going forward, Stryker’s flagship Mako Total Knee Platform and a diversified product portfolio should support growth of its global business. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has climbed 1.1% over the past 60 days. The company’s expected earnings growth rate for the next year is 40.2%.

NVIDIA Corporation (NVDA Quick QuoteNVDA - Free Report) is one of the biggest names when it comes to graphics processing units (GPUs), which are more or less used by all major tech firms to help servers implement machine learning services, which again is an integral part of the broader AI market.

 

By the way, AI is now widely used in autonomous cars or smart electronic gadgets. Notably, NVIDIA is actively involved in the autonomous vehicles industry, which is expected to reach a worth of $60 billion by 2035.

 

The company currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has moved 3.7% north over the past 90 days. The company’s expected earnings growth rate for the current and next year is 36.4% and 21.8%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

 

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