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Saturday, March 30, 2019

The best AI stock to buy

If I'm asking which stock is the best buy for Artificial Intelligence (AI), I'm pretty sure most people will think about relatively new and small tech companies, i.e. those high growth companies. I highly doubt many would think about this one, an "old" tech company which used to be dead for years but only in the recent past few years has just revived. Its products are widely used and have become the necessity part of our lives but rarely people will connect them to AI. You may guess already which company I'm talking about. Yes, my beloved Microsoft (MSFT)!  


As I said many times before, MSFT is one of the best value stocks on earth in terms of its safety, probability, and efficiency. Let me put this way, even if MSFT were not doing anything new for now, you could still rely on its old products to generate sufficient cash for you for long long time. That's how powerful it is as a cash machine. But MSFT is no more just an old tech but is entering into a fast growing era with a lot of innovative initiatives. AI is one of the areas where MSFT is also running forefront. I'm not an IT guy to comfortably provide such technical details. So let me share some key points regarding its AI initiatives that are described by others:  
  • Microsoft Corporation acquired Canadian AI company Maluuba this year.
  • This Canadian company teaches machines to think and ask questions through deep learning methods. It’s known for using AI to beat the notoriously difficult Ms Pac-Man arcade video game.
  • According to Microsoft CEO Satya Nadella, the MNC is in the process to “democratize AI” and bring the technology to more industries such as healthcare, education and manufacturing.
  • MSFT has pivoted to become a cloud-centric company, jockeying with Amazon and Google for AI breakthroughs.
  • Microsoft’s major focus is also on talent in artificial intelligence research, where it’s developing cloud-based tools for genomics and precision medicine, human language technologies, assistive robotics, machines that can read medical images and much, much more.
In addition to this, there is another AI tool not mentioned above but apparently also very important for MSFT to move forward its AI business: Power BI. PBI is a business analytics service by Microsoft. It aims to provide interactive visualizations and business intelligence capabilities with an interface simple enough for end users to create their own reports and dashboards.  Basically, PBI pulls from data sources like Excel, Salesforce, Google Analytics, social networks, and IoT devices, and presents it in an interactive visual environment for the user. This service will provide invaluable sales, marketing, financial, and operational insights to businesses around the world. This platform is hard to beat. Nearly 10,000 companies are using Power BI services already.  Since the platform is supported by Microsoft's powerful Azure cloud database, it has a lot of growth potential as Azure which has centers in over 100 countries. You may watch this short video to visualize how PBI works (see here).

Of course, calling it the best AI may sound overkilled as there are so many aspects in AI that no company can touch everything in it. But at least, MSFT should be on top of the list if anyone wants to ride the AI trend. The beauty with MSFT is that it is a perfect combo of value and growth that you can enjoy. And also remember, it is safer than the US government from the credit rating perspective!

Be aware though, MSFT is not really cheap at the current price and its near term TA looks bearish to me. I'd think if MSFT ever drops down below $100, it will be a great buy for long term. Keep MSFT on your radar screen if you are thinking about AI😊😋






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