Coronavirus Resurgence to Propel AI Stocks: 5 Picks

Since the start of the coronavirus carnage in March, economies around the world have been in various stages of closure. While the US stock market is on a roller coaster ride, technology stocks are holding the indices high.
Indeed, the technology company is booming, helping organizations and individuals manage jobs at home and work from home. At this hour, the need for automation and efficient use of data has boosted AI, which was already a promising industry.
AI can surpass traditional practices
Remote work is now the new normal. AI has evolved from internet search to some big changes like cloud and productivity gains. The leading providers of public clouds, Amazon Web Services, Microsoft Azure and Google Cloud, saw significant growth in just a few months.
Google Cloud grossed $ 2.78 billion in the first quarter of 2020, a massive 52% increase over the previous year. The segment, which was previously only a small part of the company, accounted for almost 7% of sales in the first quarter.
Companies are now trying to adapt to the digital age, and AI companies are driving digital transformation. This is because a software suite supports companies in all aspects of customer relationships and data management. This software includes sales, service, marketing and data management services. AI-based insight provides users with actionable elements that help them make decisions and provide a better experience for customers.
In addition, AI has the power to free up human time to focus on higher-order activities and rational decisions.
Big data and AI become an integral part of the business through the availability of data from sources like IoT. Combined with machine learning, they can easily capture and process big data. The use of AI in real-time functions such as cloud, autonomous robots and facial analysis promote growth. Indeed, AI can provide banking, finance, healthcare, manufacturing, retail, e-commerce, telecommunications, marketing and sales, and education services.
What's more? AI is widely used, from materials science to medical research to climate science. For example, Geisinger researchers have developed an algorithm that can reduce intracranial bleeding by up to 96% during diagnosis. In the meantime, researchers at the Montreal Institute for Learning Algorithms are using GANs (generative adversarial networks) to simulate the damage from severe storms and rising sea levels, and to understand and predict the effects of climate change.
5 shares to buy
AI is also currently helping to research the coronavirus vaccine. AI-based deep learning algorithms have been used in healthcare for a decade. GE Healthcare recently announced a number of AI algorithms designed to reduce the clinical burden caused by coronavirus. Lunit INSIGHT CXR's eight algorithms can analyze chest X-rays to find abnormalities such as tuberculosis, pulmonary nodules and pneumonia that are indicators of COVID-19 and a leading cause of death in coronavirus patients.
According to a market and market forecast, the AI ​​market was estimated at $ 21.46 billion in 2018 and is expected to reach $ 190.61 billion by 2025, an annual growth rate of 36.62%. In fact, the increasing use of big data, the increasing acceptance of cloud-based applications and services and the increasing demand for intelligent virtual assistants are the main drivers for the AI ​​market.
Given the encouraging factors, we shortlisted five stocks that could enjoy the boom.
Dropbox, Inc. DBX provides a collaboration platform. The company's expected earnings growth rate for the current quarter is 70% compared to the forecasted 16.3% decline in earnings for the Zacks Internet services industry. The Zacks consensus estimate for the current year has increased by 8.6% in the past 60 days. Dropbox has a Rank 1 Zacks (Strong Buy). The full list of today's Zacks # 1 Rank stocks can be found here.
The Trade Desk, Inc. TTD operates a cloud-based self-service platform that enables buyers to create, manage, and optimize data-driven digital advertising campaigns. The company's expected earnings growth rate for the next year is 30.6% compared to the projected earnings growth of 23% for the Zacks Internet services industry. The Zacks consensus estimate for the current year has increased 2.8% over the past 60 days. The trade desk has a Zacks rank 2 (buy).
AudioEye, Inc. AEYE provides web access solutions for the Internet, print, broadcast and other media. The company's expected earnings growth rate for the current quarter is 33.3% compared to the forecast earnings growth of 23.1% for the Zacks Internet software industry. The Zacks consensus estimate for the current year’s result has increased by 2.9% in the past 60 days. AudioEyecarries a Zacks Rank 2.
NVIDIA Corporation NVDA is a visual computing company. The programming language CUDA GPU plays a role in AI technology. The company's expected profit growth rate for the current year is 36.4% compared to the 14.3% profit decline forecast by Zacks Semiconductor - General Industry. The Zacks consensus estimate for the current year has increased by 3.8% in the past 60 days. NVIDIA has a zacks rank of 2.
Micron Technology, Inc. MU provides an easy-to-use software programmable platform that supports a wide range of machine learning frameworks. The company belongs to the Zacks Semiconductor Memory industry and expects a profit growth rate of 33.9% for the next year. The Zacks consensus estimate for the current year has increased by 15.4% in the past 60 days. Micron Technology has a Zacks rank 2.
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