Is Nvidia the only AI stock to pay attention to? As AI adoption increases, investors may be wondering which other companies have similar returns and innovations in artificial intelligence. Nvidia’s growth is impressive, but a number of other, more diverse applications for AI can also serve to fuel portfolio growth.
Let’s take a quick look at some of the top-performing AI stocks beyond Nvidia based on a mix of opinions from some experts and recent data from AI-focused indexes. The companies on this list have distinct positions in AI and serve specific sectors, each with potential for growth outside of the semiconductor giant.
SoundHound AI is a leading voice-based AI solutions solutions provider, from voice assistants to conversational AI products capable of the food service, automotive, and hospitality sectors. SoundHound’s innovations are already getting traction with clients like Hyundai, Pandora, and Toast, and have delivered more than 231.59% returns in that same year. But its adaptable technology offers businesses tools to automate customer interactions, simplify processes and deliver improved user experiences.
Procept BioRobotics isn’t a typical AI company, but it brings AI and robotics to healthcare. Its innovative solutions focus on the area of urology, offering advanced and minimally invasive robotic surgeries. AI can find its place in precision healthcare: The company’s AquaBeam therapy system treats benign prostatic hyperplasia without the need for heat. The growth of Procept was with a one-year return of 187.29% — that’s because the use of AI in healthcare continues to grow, and there’s a need for more efficient robotic treatments.
AI is used by Pegasystems to promote better optimization of business process automation, customer engagement and decision-making. In industries like finance, healthcare, telecom, etc., its AI-driven platform helps clients to enhance customer int experience and streamlines its operation. Pegasystems’ solutions have served as a valuable solution to enterprises’ shift towards data-driven strategies, contributing a stellar 88.70% over the past year. AI plays a key role beyond hardware, says Pegasystems, with transformative software solutions for businesses worldwide.
Upstart Holdings uses AI in the financial industry. Its AI-powered lending platform is more accurate in assessing credit risk compared to traditional credit scores, which means loans are more accessible to a wider group of people who aren’t served by traditional systems. Upstart pairs up with banks and credit unions and uses AI to make smarter credit decisions, making its stock grow 85.92% in a year. The model predicts that AI could transform finance to a heightened version that would simplify risk assessment and smooth access to financial services.
With AI enhancing further, intuitive Surgical has always been a leader in robotic assist surgery. AI is embedded in the company's flagship da Vinci surgical system for improving precision in complex surgeries by keeping them safer and more efficient. The company’s stock returned 85.65 per cent this year due to rising demand for minimally invasive surgeries and the increasing importance of AI in improving patient outcomes. For those looking for AI stocks in the healthcare industry, Intuitive Surgical makes for a compelling play.
AeroVironment is a defence and aerospace company focused on AI-driven unmanned systems and drone technologies. Real-time AI data processing and autonomous systems are core to modern defense strategies and AeroVironment’s products enable these strategies. The past year has seen the company return 82.56 per cent, which is something considering that it is a company in the sector where AI is rapidly developing. The importance of AI in defence is underscored by geopolitical tensions, which make AeroVironment a hugely important, still growing, company.
AI stocks are more than just mega-cap tech giants, spanning everything from healthcare to finance to defence. Despite tech behemoths like Amazon and Tesla grabbing the public’s attention on the AI fundraising front over the past year, they’re not the only ones that can deliver unique exposure to the disruptive power of AI, according to Haydar Haba, Andra Capital founder.
Investing in individual AI stocks can lead to big rewards but they come with loads of research and a tolerance for volatility. The most important steps are to open a brokerage account and learn about each stock’s performance and each sector’s trend. Another option for investors may be AI-focused ETFs which will track indices such as the Index Global Robotics & Artificial Intelligence Thematic Index and will cover a number of AI innovators.
Some analysts worry that AI stocks are inflated valuations, but many experts say that AI’s transformational effect across various industries is appropriate for strong performance. Haba cautions that hype is not enough to guide investment decisions — companies need to have real-world progress in using AI to solve problems. Yet, with how quickly machine learning is developing, and how integration into all sectors is occurring, some investors believe that this is a real moment, not overenthusiasm.
AI stocks can be a great addition to a well-rounded portfolio for those who have some risk appetite and want to diversify. According to the investors, if they invested strategically, they could park their money in the growth of AI in all fields and their return would exceed Nvidia.