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Artificial intelligence (AI) is already taking over the determining market trend of the year 2023. End of 2022 OpenAI took the world by storm when it released ChatGPT, a free chatbot that quickly gained public fascination for disrupting many industries. Now companies are rushing to grab a piece of the fast-growing market as AI stocks soar and political leaders take notice. On January 27, the White House announced a historic agreement between the United States and the European Union. In it, experts from the US and Europe will work together to develop AI tools, including computers and technologies in the field of data protection. According to National Security Advisor Jake Sullivan’s statement:
“This collaborative effort will drive responsible advances in AI to address major global challenges with a common development model and integrated research to deliver benefits to our societies through five key focus areas: extreme weather and climate forecasting, emergency response management, health and medicine improvements, Power grid optimization and agricultural optimization.”
This news has been excellent for AI stocks as positive speculation increases. An AI-centric collaboration between two economic superpowers could propel AI companies on a truly global scale. This is especially true for those who are already producing technologies with applications for the focus areas outlined by Sullivan. The area of power grid optimization is particularly important as the growth of the electric vehicle (EV) sector depends on it. But companies across many sectors will have an opportunity to benefit as the Biden administration prioritizes AI and the innovators behind it. Let’s take a look at the tech players most likely to come out on top as the AI boom prepares for a new phase.
AI Stocks to Buy: C3.ai (AI)
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This top AI stock has already benefited from the news of the US-EU deal. C3.ai (NYSE:AI) rose 15% following the White House announcement last week. A few days later, the company saw its shares fall again when C3 reported that it would be launching an innovative new suite of products in March 2023 InvestorPlace Assistant News Writer Eddie Pan notes that this is a major step forward that will bring it closer to offering the same services as ChatGPT. The company has given investors plenty of reasons to bet on it, and is up 86% in the past month alone.
However, it will benefit even more from the forthcoming cooperation between the US and the EU. C3.ai is one of the leading AI innovators in the technology sector and produces an enterprise-oriented software platform. This enables customers to create in-depth tools for processing and visualizing data. Before the AI boom, the company worked primarily with industries such as oil & gas. However, it has since branched out and landed a 5-year, $500 million deal with the Department of Defense. Companies with a pre-established relationship with government agencies will have a clear advantage as government shifts focus to helping AI companies grow.
splunk (SPLK)
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One of C3’s AI competitors has grown rapidly, adding to its impressive client list. splunk (NASDAQ:SPLK) recently announced layoff plans, but it’s still rising. That could be because positive sentiment toward AI stocks is high. But Splunk has a proven ability to grow, even in less prosperous times. In December 2022, she renewed her partnership with Amazon (NASDAQ:AMZN) Internet Services (AWS) for another five years. but InvestorPlace Contributors Muslim Farooque reports that its client list includes 90% of the Fortune 100 list. Under the new AI boom, this list could easily be expanded even further. As Farooque states:
“Splunk is a big data juggernaut, bringing AI-powered insights to thousands of businesses worldwide. It has grown its customer base at a rapid pace and has quickly become one of the industry’s leading data providers.”
This far-reaching impact puts Splunk in a great position to take advantage of new AI collaboration. His AI-powered insights have already enabled him to serve a diverse client portfolio that is likely to grow as more companies embrace AI. Demand for AI insights can only increase as governments look to industry to help solve more problems.
AI Stocks to Buy: Palantir Technologies (PLTR)
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This former cybersecurity winner is still recovering from a very difficult 2022. However, that doesn’t mean investors should write it off. But on the contrary. When InvestorPlace Contributor David Moadel argues that there is a strong bullish buy case Palantir (NYSE:PLTR) as a way to play off the AI boom. In his view, the company’s use of data science integrations makes it a clear buy among AI stocks. InvestorPlace Senior Investment Analyst Luke Lango has also welcomed PLTR in a similar light, describing it as “using AI to bring Batman-like technology to the real world.”
Despite the difficult year, Palantir has a long history of working with the US Armed Forces. It has provided software to the US Air, Space and Cyber Forces and has worked with the US Army’s Program Executive Office for Enterprise Information Systems (PEO EIS) for several consecutive years as part of the Army Vantage program. The US government has issued guidance on introducing autonomy in weapons and defense technology, indicating that it is preparing to rely further on AI technology. If so, Palantir will be among the winners as government agencies turn to their former partner again.
At the time of publication, Samuel O’Brien held no position (neither directly nor indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.
