Bill Gates' Old Company, Microsoft, Tops List of AI Stocks to Buy
In the world of artificial intelligence (AI) investing, Microsoft, the former company of tech mogul Bill Gates, is undoubtedly a top pick. With its dominance in the AI space, it's no surprise that Microsoft is at the forefront of most AI investors' must-own list.
According to the latest filing from the Bill & Melinda Gates Foundation Trust, the organization had invested a whopping $42.3 billion in U.S.-listed stocks at the end of December. Out of the 24 stocks in its portfolio, Microsoft accounted for one-third of its assets.
While Microsoft holds a significant portion of the foundation's assets, the remaining 23 stocks are nothing to scoff at. Collectively, these stocks have an average market value of approximately $1.2 billion, making them good long-term investments.
Among the other holdings, three stocks stand out for their integration of AI technology into their businesses.
The smallest of these AI stocks is Schrodinger, with a market capitalization of $1.91 billion. Despite its relatively small size, Schrodinger's AI-powered software technology platform plays a vital role in aiding drug companies in selecting the best molecules for their treatments. Boasting an impressive roster of clients, including all 20 of the world's largest drug companies, Schrodinger generated $159.1 million in software revenue in 2023. With its high gross margins and a profitable year, the company expects to continue growing in 2024.
Deere & Co. takes second place among the AI stocks, with a market capitalization of $111.02 billion. The company has been at the forefront of automated farming since the 1990s. Leveraging machine learning and computer vision, Deere aims to empower farmers to make better decisions on a massive scale. By utilizing AI, Deere believes they can revolutionize the agricultural industry.
Danaher, the largest of the three stocks, holds a market cap of $183.73 billion and accounts for 0.2% of the foundation's assets. This company is dedicated to leveraging AI in the field of predictive modeling and machine learning. According to a sponsored article by Danaher, the adoption of engineering biology, coupled with AI, will significantly enhance biopharma companies' ability to scale their businesses. The integration of AI and machine learning into the biopharma development process promises to optimize decision-making and accelerate innovation.
These three AI stocks represent promising long-term investments for investors seeking exposure to the growing field of artificial intelligence. With the backing of the Bill & Melinda Gates Foundation Trust, these companies have the resources and expertise to thrive in the AI landscape.
Analyst comment
Positive news. Microsoft, with its dominance in the AI space, tops the list of AI stocks to buy. Other AI stocks such as Schrodinger, Deere & Co., and Danaher also show promising growth potential. With the support of the Bill & Melinda Gates Foundation Trust, these companies are well-positioned to succeed in the AI market.
