Key Points
- Companies across different sectors leverage AI to innovate and enhance their operations and customer experiences.
- Several companies are making significant strides with AI, including these five companies leveraging AI unexpectedly: NKE, SOFI, DE, NFLX, and TSLA.
- Deere & Company, for example, has employed AI to conserve agricultural chemicals, provide data-driven insights to farmers, and introduced a fully autonomous tractor.
- 5 stocks we like better than Netflix
As the artificial intelligence (AI) revolution continues gaining momentum, companies across various sectors embrace AI technologies to enhance operations, improve customer experiences, and drive innovation.
Leading the charge is NVIDIA Corp. NASDAQ: NVDA, whose remarkable performance, up 130% year-to-date, underscores the transformative power of AI. While NVIDIA's leadership in AI might be well-known, several other companies, some surprising, are also making significant strides with AI.
Here are five companies that are leveraging AI in unexpected ways.
SoFi Technologies, Inc.
SOFI
SoFi Technologies
$6.90 -0.01 (-0.14%) (As of 05/31/2024 08:51 PM ET)
- 52-Week Range
- $5.59
▼
$11.70 - Price Target
- $9.08
SoFi Technologies, Inc. NASDAQ: SOFI, an internet-based financial institution, is integrating AI to enhance its banking services.
The company uses the conversational AI engine from its Galileo fintech platform to improve customer satisfaction, response times, and overall business efficiency. AI is also crucial in SoFi's fraud detection, automated investment portfolio management, and instant loan approvals.
Despite being down 31% year-to-date, analysts hold a hold rating with a forecasted 32% upside based on the consensus price target, reflecting optimism about SoFi's AI-driven future.
Netflix, Inc.
$641.62 -6.04 (-0.93%) (As of 05/31/2024 08:51 PM ET)
- 52-Week Range
- $344.73
▼
$664.25 - P/E Ratio
- 44.53
- Price Target
- $632.00
Netflix, Inc. NASDAQ: NFLX, a streaming giant needing no introduction, has seen its stock soar, up 33.9% year-to-date and 18% this month alone.
The company uses AI extensively to personalize user experiences, enhance content quality, and optimize operations. Netflix's AI algorithms recommend shows and movies based on user preferences and viewing history, helping maintain high user engagement. Additionally, AI assists in content categorization, strategic decision-making, post-production processes, and customer service through chatbots.
Analysts are bullish on Netflix, with a moderate buy rating from 35 analysts, bolstered by the company's impressive 70% rise over the past year.
Deere & Company
DE
Deere & Company
$374.76 +6.41 (+1.74%) (As of 05/31/2024 08:50 PM ET)
- 52-Week Range
- $345.55
▼
$450.00 - Dividend Yield
- 1.57%
- P/E Ratio
- 11.28
- Price Target
- $432.92
Deere & Company NYSE: DE, a leader in agricultural, construction, and forestry equipment, is down 8.3% year-to-date but is actively adopting AI to revolutionize its industry. The company's AI-powered See & Spray product helps farmers reduce herbicide use, while AI algorithms provide data-driven insights to improve farming decisions.
Deere's introduction of a fully autonomous tractor marks a significant leap in agricultural innovation. Analysts are optimistic about Deere's AI initiatives, forecasting an 18.08% upside with a moderate buy rating, signaling potential growth despite current market challenges.
Nike, Inc.
$95.05 +1.60 (+1.71%) (As of 05/31/2024 08:51 PM ET)
- 52-Week Range
- $88.66
▼
$123.39 - Dividend Yield
- 1.56%
- P/E Ratio
- 27.96
- Price Target
- $116.26
Nike, Inc. NYSE: NKE, renowned for its sportswear and athletic footwear, is leveraging AI to transform customer experiences and operational efficiencies. AI-driven technologies enhance shoe fitting accuracy, personalize offers, and support virtual assistants. Nike employs advanced analytics and AI strategies in its supply chain to boost speed, accuracy, and sustainability.
Although the stock is down almost 14% year-to-date, analysts predict a 24.7% upside with a moderate buy rating. Nike's commitment to AI underscores its ongoing innovation and customer engagement efforts.
Tesla, Inc.
$178.08 -0.71 (-0.40%) (As of 05/31/2024 08:51 PM ET)
- 52-Week Range
- $138.80
▼
$299.29 - P/E Ratio
- 45.43
- Price Target
- $185.90
Tesla, Inc. NASDAQ: TSLA is at the forefront of AI-driven autonomous vehicle technology. The company's AI systems use a network of sensors and cameras to monitor surroundings and make real-time driving decisions, powering features like Autopilot and Full Self-Driving (FSD).
Tesla's AI extends to battery management and navigation, enhancing the driving experience. Known for its revolutionary approach, Tesla continues to lead the charge in AI adoption within the automotive industry, underscoring its role as an innovator in intelligent driving technology.
The Bottom Line for These AI Innovators
The rise of AI is not confined only to the tech giants; companies across diverse sectors are harnessing AI to drive innovation and improve operations. From SoFi's AI-driven financial services to Deere's AI-powered service, these five companies exemplify AI's broad and transformative impact. Investors should watch these surprising AI plays, recognizing the potential for growth and further innovation as the AI revolution continues to unfold and expand.
Before you consider Netflix, you'll want to hear this.
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