2 AI Stocks for the 21st Century
Artificial intelligence (AI) has huge potential to be the "next big thing," maybe even as important as the internet. Computers can't think, and they are inferior to humans in many ways. But what computers are really good at doing is finding value in reams and reams of data.
For example, over a 30-year period, Jim Simons and Renaissance Technologies averaged 66% annualized returns on their holdings in the stock market. Simons did no qualitative research, but he's a mathematician and was able to use computers to find pricing inefficiencies. That's not technically AI, but it shows you how data analysis can lead to startling success.
We're seeing more and more AI companies go public now. Mohawk Group Holdings (NASDAQ: MWK) acquires and launches small companies in the consumer goods space after doing data analysis through its AIMEE platform (more below). And Upstart (NASDAQ: UPST) is hoping to use its AI to expand the lending pool to subprime borrowers without a rise in defaults.
Source Fool.com
