Artificial Intelligence (AI) could add $13 trillion to global GDP by 2030. And that’s going to produce big gains for one of our top AI stocks.
While AI is becoming one of the hottest investment trends out there, few realize retail and logistics stand to gain the most from this growth.
Facebook Inc. (NASDAQ: FB) uses AI technology to customize ads for each of its 360 million users. The users will see tailored ads based on the information they share with FB – age, locations, likes, and a host of other variables.
That’s AI, and that’s why AI stocks are going through the roof.
Does your car park itself? It uses artificial intelligence to do so.
Are you looking for a job? Your resume likely goes through AI for prescreening.
Does your refrigerator keep track of its contents and order more of what you need? AI.
You get the point. AI is already here, and it will only see wider use in the coming years. Companies that adopt it will become more efficient. They will know when and how much inventory to have on hand for a streamlined operation. They will keep track of their customers and their changing demographic landscape.
Software will be able to crunch enormous amounts of raw data to find new efficiencies and trends hidden to the naked eye. It will even know when equipment will fail or how often to deliver heating oil to a building based on the weather.
Because AI technology is set to infiltrate almost our entire world as we know it, this is a huge growth industry. And it’s giving one of our best AI stocks a 75% boost over the next year.
But that’s only the beginning for this AI stock as we approach the $13 trillion growth mark in 2030…
One of the Top AI Stocks to Own Right Now
Splunk Inc. (NASDAQ: SPLK) is one of our favorite stocks in this space.
This cloud software maker has solutions for information technology operations, security, the Internet of Things (IoT), applications, and business analytics.
Not only is it front and center in this burgeoning industry, it is also trading at a nice discount. According to Morningstar Research, it’s trading 26% below its fair value. That’s a steal for a company on the cusp of this sort of growth.
Wall Street analysts have one-year price targets that are up to 76% higher than this company’s current level of trading. One of them, Rosenblatt Securities, said that Splunk is the “de facto standard” in infrastructure and security management.
Money Morning Defense and Tech Specialist Michael Robinson called Splunk one of the world’s top data analytics firms and a bona fide profit machine. Based in San Francisco, the firm was founded in 2003 and was profitable only six years later. That’s unusual for growth-centric startups. Since the company went public in 2012, it has strung together a strong earnings track record.
Along the way, Splunk has won a series of awards and accolades. It was named by Forbes as one of the top growth firms in the world in 2018.
The company combines organic growth with savvy “bolt-on” mergers. Splunk has bought at least 10 other firms since the fall of 2013, using them to add new products and enter new markets.
With so much momentum, it’s no wonder the firm is growing so quickly.
Over the past three years, per-share earnings have averaged annual gains of a stunning 112%. That’s more than three times faster than its sales growth.
Source: Money Morning