These 3 AI Stocks Report This Week… What to Know
Artificial intelligence (AI) is undoubtedly the driving force behind the massive returns we’ve seen in 2023. Companies across various industries are recognizing the value of integrating AI into their business plans, leading to a significant increase in mentions of AI during earnings calls. The estimated worth of generative AI alone adds up to a staggering $7.9 trillion per year, further highlighting the economic impact of this technology.
This week, three major AI companies are set to report their earnings, and all eyes are on them. Despite a 5% decline in shares year to date, sentiment among investors seems to be shifting, thanks to their positive earnings reports in recent quarters. It’s the perfect time to examine these companies and the developments they are making in the AI space.
First up is IBM, which is expected to earn $2.01 per share on $15.77 billion in revenue. Although these figures are lower compared to the previous year, IBM is making significant strides in the AI field. Just last week, the company unveiled its watsonX AI technology platform, designed to enhance workflow productivity for businesses. With two of the three prongs of this platform already available, IBM is demonstrating its commitment to AI. Furthermore, IBM’s collaboration with Adobe and its acquisition of FinOps software company, Apptio, demonstrate its dedication to automation technologies.
Next on the list is Taiwan Semiconductor Manufacturing Company (TSM). The demand for AI chips is skyrocketing, and as a result, Nvidia’s shares have surged over 220% this year. However, TSM, a key player in the AI development process, has only seen a 40% gain. This seems highly undervalued considering the company’s role in expediting U.S. semiconductor production. TSM’s commitment to constructing a new manufacturing facility in Arizona highlights its pivotal position in the AI chip market.
Last but not least is Intuitive Surgical (ISRG), the company behind the groundbreaking da Vinci Surgical System. As the line between robotics and AI becomes increasingly blurred, Intuitive Surgical is capitalizing on its advantage in the medtech space. With strong financials and increasing momentum for its da Vinci Surgical System, the company is attracting the attention of top institutional investors and hedge funds. Despite trading below its 52-week high, investor optimism remains high for Intuitive Surgical.
These three companies are just a glimpse into the vast opportunities surrounding AI in today’s market. As AI continues to push the market higher, it’s essential to keep an eye on the stocks that are worth investing in. From companies like IBM, making significant advancements in AI technologies, to TSM’s critical role in the semiconductor industry, and Intuitive Surgical’s innovation in robotics and AI, the future looks promising. As an AI investor, it’s crucial to stay informed about these developments and make informed decisions based on this ever-evolving sector.
