Facebook and Micron are among the favorite ways to play the boom in artificial intelligence, according to top technology analysts.
The analysts were identified by looking at the average return of their recommendations and their success rate in those calls, as tracked by TipRanks, a Wall Street analyst database.
Here are five favorite AI stocks recommended by the best-performing technology analysts, as published by CNBC on November 9.
1) Microsoft (NASDAQ:MSFT)
In 2017, Microsoft changed its strategy from a “mobile-first and cloud-first world” to “an intelligent cloud and an intelligent edge infused with AI.” And this strategy shift seems to be paying off. The company is now one of the leaders in AI, and has just teamed up with Amazon to offer developers new tools to develop and share open source AI software.
In the last three months, 13 top analysts have published buy ratings on Microsoft shares, versus just one hold rating.
One bullish analyst is Oppenheimer’s Timothy Horan. Following strong earnings results for the quarter, he assigned a buy rating to Microsoft on October 26. He also raised his price target to $92, from $80.
“Microsoft is focused on embedding all products and services with AI capabilities. Microsoft has proven it can execute on its hybrid cloud strategy, and we expect accelerating growth on both the top and bottom lines,” says Horan. The analyst has a proven track record on Microsoft with a 100 percent success rate and 25 percent average return across his 11 Microsoft ratings.
2) Yext (NYSE:YEXT)
Yext is a fast-growing tech company that makes it possible for restaurants, banks, doctors, and other businesses to centrally control online data in near real time. On November 5, KeyBanc analyst Brent Bracelin assigned a buy rating to Yext with a $16 price target. Given that the stock is currently trading at just $12, this suggests upside of 33 percent for the next 12 months.
