​Artificial Intelligence (AI) is powering change in every industry. Steam propelled the original Industrial Revolution; electricity powered the second; preliminary automation and machinery engineered the third; and intelligent computers—are shaping the Fourth Industrial Revolution. Artificial Intelligence, or AI, is the technology behind the fourth industrial revolution, bringing significant changes worldwide.

 

It is usually defined as the study of intelligent systems that can execute tasks and activities requiring human intelligence. The Magnificent 7 group consists of mega-cap stocks that will lead the AI revolution. In 2023, the Magnificent 7 stocks logged an impressive average return of 111%, compared to 24% for the other 493 companies in the S&P 500. 

The Mag 7 tech companies—Alphabet (GOOG), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) expect significant financial gains during the AI revolution. These companies have already shown impressive growth, largely driven by advancements in AI technology. For instance, Nvidia’s stock soared by 239% in 2023 alone, thanks to its breakthroughs in AI hardware. Meta Platforms also saw a 194% gain, while Tesla’s stock doubled.

 

Nvidia is a dominant supplier of artificial intelligence (AI) hardware and software. Nvidia has invested in several companies with reasonably priced stock prices, including Applied Digital (APLD), Nano-X Imaging (NNOX), Recursion Pharmaceuticals (RXRX), Serve Robotics (SERV), and Soundhound (SOUN). 

 

Applied Digital Corporation (APLD) holds Elite Partner Status in the NVIDIA Partner Network and is currently building out one of the world’s largest data centers. Applied Digital Corporation develops and operates data centers in North America. It operates primarily through two business divisions. One caters to cloud computing, and the other builds facilities for high-performance computing.

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Nano-X Imaging (NNOX)​ Nano-X Imaging Ltd. is engaged in the development of medical imaging systems. The firm has integrated AI into its diagnostic processes with a system called NanoxAI. This AI-powered technology, which has received FDA approval, aids in interpreting patient scans, detecting chronic conditions at an early stage, and expediting access to clinical care.

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Recursion Pharmaceuticals (RXRX) is leveraging new technology to create virtuous cycles of learning around datasets to build a next-generation biopharmaceutical company. Recursion acquired a pair of AI-enabled drug discovery biotechs, Cyclica and Valence, for a total of $87.5 million to help the company use digital chemistry and machine learning to calculate promising targets for drug development. Powerful players like Roche and Bayer are already among its patrons.

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Serve Robotics (SERV)​ Serve Robotics Inc., will enter markets across the United States and further advance its AI-powered mobility platform. The company will also scale its robotic fleet to meet massive and rapidly-increasing customer demand for last-mile automation, including deploying up to 2,000 robots to serve its major clients including Uber Eats, Walmart, Chili’s, and 7-Eleven. Utilizing delivery robots has the potential to reduce traffic congestion and air pollution, while also improving the efficiency of last mile delivery and offering customers and merchants a new and innovative delivery experience.

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Soundhound (SOUN) acquired Amelia, an enterprise conversational AI leader, and Allset, a restaurant ordering platform, signaling the company's intent to broaden its market reach. These acquisitions are strategic as they position SoundHound to diversify its revenue streams and capitalize on opportunities in other industries such as finance, healthcare, and insurance.