Artificial intelligence and related technology giving machines and systems the ability to make decisions is a fast-growing industry. Global spending on AI grew by a double-digit percentage in 2020, and the pace of expansion is only expected to continue in the years to come.
But rather than picking some smaller up-and-coming names like I did last month, I’m focusing my attention on larger companies like Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), IBM (NYSE: IBM), and Fortinet (NASDAQ: FTNT) to kick off 2021. Here’s why.
2020 was a big year for tech — even big tech. But among the FAANG stocks (Facebook (NASDAQ: FB), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX), and Google), Google parent Alphabet fared the worst. It was up “only” 30% on the year, dragged down, along with Facebook, by its reliance on advertising revenue and plagued with regulatory and antitrust scrutiny.