Artificial intelligence (AI) continues to evolve and advance rapidly, becoming increasingly integrated into the automation of everyday life and a focal point of growth in the technology sector.
AI is also becoming a major priority for the Australian government, whose 2023/24 budget includes a plans to invest AUD 101.2 million in the development and adoption of AI over the coming years. This includes A$17 million announced in December 2023 to fund up to five AI Adoption Centers for small and medium-sized businesses.
According to a September 2023 report IDC report When it comes to global AI spending, Australia, along with Korea and India, leads the Asia Pacific region in spending on AI solutions; these three countries also lead the region in AI adoption. Spending in the region, excluding Japan and China, is expected to reach $28.2 billion by 2027.
Although the AI market is relatively small in Australia, it is growing. To help investors understand the options available, Investing News Network used TradingView stock screener to find the best AI stocks on ASX Exchange by market capitalisation. All ASX AI share data was current as of 17 August 2024; companies whose business is primarily focused on AI were considered.
Market capitalization: AUD 10.28 billion; current share price: AUD 17.11
NEXTDC is Australia’s leading data centre operator, with 13 operational centres across Australia, New Zealand, Malaysia and Japan. nine more currently in progress. The company has established several commercial and academic partnerships to improve Australia’s digital infrastructure.
NEXT DC revealed last September that it would partner with La Trobe Business School’s Centre for Data Analytics and Cognition to conduct research into future theoretical and practical applications of AI across various sectors.
On August 6NEXTDC has obtained the (NASDAQ:NVDA) DGX-Ready Data Center Program Certification, enabling them to optimize NVIDIA AI platforms and power advanced AI data centers in Australia. This certification enables NEXTDC to guide Australian organizations through a range of digital infrastructure architectures tailored to NVIDIA AI technology and provides access to NVIDIA infrastructure options to address AI infrastructure challenges.
Market capitalization: AU$368.12 million; current share price: AU$0.19
BrainChip is the company behind Akida, a revolutionary digital neuromorphic chip built with a spiking neural network, a type of artificial network that mimics the way messages are transmitted between neurons in the human brain.
Since the AI is built into the chip, it is able to learn on its own and does not depend on the cloud or other networks. This makes it much more secure and also reduces latency.
On June 5, the company released a white paper on its new technology called TENNs-PLEIADES, an efficient AI processor that can perform complex tasks like decision making, object recognition, and data analysis. Unlike Akida, this chip is designed to spatiotemporal classification and detection using event-based data, making it particularly suitable for low-latency applications such as self-driving cars.
Market capitalization: AU$244.19 million; current share price: AU$1.10
Appen was founded in 1996 by a couple from Sydney, New South Wales, as a startup specializing in automated speech recognition. Today, the company is a trusted partner for businesses moving toward the use of AI, with a suite of large-scale language models and industry-specific AI training products.
Appen has struggled in recent years to maintain its market share. Generative AI has gained popularity. In January, longtime partner Alphabet (NASDAQ:GOOGL) cut ties focus on internal AI.
With the stock price down sharply from its peak earlier this decade and revenue set to decline in 2023, this stock could be risky. Interested investors should do their due diligence and keep a close eye on upcoming results. Appen Second Quarter Results Google posted revenue growth and a positive monthly trajectory, despite the loss of Google’s business, and its stock price reacted positively to the news.
4. Bigtincan Holdings (ASX:BTH)
Market capitalization: AU$94.49 million; current share price: AU$0.12
Bigtincan Holdings is a sales platform that uses AI to help businesses improve their customers’ shopping experience by making the process more efficient and personalized. list of partners includes Apple (NASDAQ:AAPL), Adobe (NASDAQ:ADBE), SalesForce (NYSE:CRM) and Microsoft (NASDAQ:MSFT). Its large language model, GenieAI, was spear in March 2023.
Bigtincan of Report for the first half of the 2024 financial year revealed that GenieAI started generating revenue during the period and the company reported positive earnings before interest, taxes, depreciation and amortization (EBITDA), up 136% from the previous reporting period. Its FY2024 results briefing will be published August 27th.
5. AI-Media Technologies (ASX:AIM)
Market capitalization: AU$87.7 million; current share price: AU$0.42
AI-Media Technologies is a global media access provider with operations in four key regions: Australia and New Zealand, North America, EMEA (Europe, Middle East and Africa) and Asia. It was founded in 2003 by Tony Abrahams and Alex Jones, who was born deaf.
The company uses AI to transcribe speech, making media accessible to everyone and is now one of the world’s leading providers of subtitles and translations. AI-Media Technologies began trading on the ASX on 15 September 2020.
FAQ on investing in AI
What is artificial intelligence?
AI is defined as human intelligence demonstrated by machines. The development of graphics processing units with faster and more powerful chips has driven the emergence of AI technologies.
Where is AI used?
AI has been heralded as a technology of Fourth Industrial Revolutionwith significant investments from sectors such as transportation, manufacturing, education, and agriculture. Some of the sectors likely to see the fastest growth in AI investment in the coming years include healthcare, pharmaceutical research, retail, industrial automation, finance, and intelligent process automation.
How to invest in AI stocks?
Investors looking to capitalize on the growth potential of AI have multiple entry points into stocks. It’s critical that everyone does their due diligence and talks with their broker to determine the most suitable investments.
The companies mentioned above have a strong focus on AI, but investing in companies that use AI as part of a broader business model is a way to gain indirect exposure to the sector. Examples of stocks like this on the ASX include Block (ASX:SQ2), WiseTech Global (ASX:WTC), Research (ASX:SEK) and Xero (ASX:XRO).
For a more diversified approach, the Betashares Global Robotics and Artificial Intelligence ETF (ASX:RBTZ) invests in companies involved in the development of AI applications around the world. Investing in an exchange-traded fund is a low-cost way to benefit from a sector without directly buying individual stocks.
This is an updated version of an article first published by Investing News Network in 2020.
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Securities Disclosure: I, Meagen Seatter, have no direct investment interest in any of the companies mentioned in this article.
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