ASX AI stocks: Top 10 artificial intelligence shares [2023]

Top AI companies on ASX

Data as of 23 January 2023. Source: Stake, ASX.

*The list of shares mentioned is ranked by market capitalisation. When deciding what assets to feature, we analyse the financials, recent news, the state of the industry, and whether or not they are actively traded on Stake.

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1. Appen Limited ($APX)

Market Capitalisation: $335m

Stock price (as of 23/01/2023): $2.58

Stake Platform Bought / Sold (1 Jan 2022 - 23 Jan 2023): 60% / 40%

Appen is a global leader in providing high-quality, human-annotated training data for machine learning and artificial intelligence. The company was founded in 1996 in Sydney, Australia, and has since expanded to operate in over 130 countries. Appen's primary operations include providing data annotation services, data collection, and language technology solutions to companies in various industries such as technology, automotive, and financial services. The company uses artificial intelligence to improve the accuracy and efficiency of its data annotation services, which are used to train machine learning models.

2. NextDC Limited ($NXT)

Market Capitalisation: $4.55b

Stock price (as of 23/01/2023): $9.52

Stake Platform Bought / Sold (1 Jan 2022 - 23 Jan 2023): 65% / 35%

NextDC is an Australian data centre services provider that operates a portfolio of data centres across Australia. The company was founded in 2010 and is headquartered in Brisbane. NextDC's primary operations include providing data centre solutions such as colocation, cloud, and network services to customers in various industries such as technology, government, and financial services. The company uses artificial intelligence for automating processes such as network management and security, as well as for providing insights into the usage and performance of its data centres.

3. WiseTech Global Limited ($WTC)

Market Capitalisation: $17.99b

Stock price (as of 23/01/2023): $55.36

Stake Platform Bought / Sold (1 Jan 2022 - 23 Jan 2023): 60% / 40%

WiseTech Global is a provider of cloud-based software solutions for the logistics and transportation industry that uses artificial intelligence for automating processes. The company was founded in 1994 in Sydney, Australia and has since expanded to operate in over 130 countries. WiseTech's primary operations include providing logistics software solutions such as cargo management, compliance, and global trade solutions to customers in various industries such as logistics, transportation, and manufacturing. The company uses artificial intelligence to improve the efficiency and accuracy of its software solutions, as well as to provide insights and recommendations to its customers.

4. Xero Limited ($XRO)

Market Capitalisation: $11.08b

Stock price (as of 23/01/2023): $73.85

Stake Platform Bought / Sold (1 Jan 2022 - 23 Jan 2023): 73% / 27%

Xero is a cloud-based accounting software company that uses artificial intelligence to provide insights and recommendations to small business owners. The company was founded in 2006 in New Zealand and has since expanded to operate in over 180 countries. Xero's primary operations include providing accounting software solutions such as invoicing, expense management, and payroll to small businesses. The company uses artificial intelligence to improve the efficiency and accuracy of its software solutions, as well as to provide insights and recommendations to its customers.

5. Altium Limited ($ALU)

Market Capitalisation: $5b

Stock price (as of 23/01/2023): $38.02

Stake Platform Bought / Sold (1 Jan 2022 - 23 Jan 2023): 55% / 45%

Altium is a software company that provides electronic design automation tools that use artificial intelligence to assist with the design process. The company was founded in 1985 in Sydney, Australia, and has since expanded to operate in over 80 countries. Altium's primary operations include providing software solutions such as PCB design, FPGA design, and embedded software development to customers in various industries such as electronics, automotive, and aerospace. The company uses artificial intelligence to assist with the design process, such as providing intelligent guidance and suggestions during the design process, as well as optimising the performance of its software solutions.

6. Seek Limited ($SEK)

Market Capitalisation: $8.6b

Stock price (as of 23/01/2023): $24.33

Stake Platform Bought / Sold (1 Jan 2022 - 23 Jan 2023): 66% / 34%

Seek is a digital employment marketplace that uses artificial intelligence to match job seekers with suitable job opportunities. The company was founded in 1997 in Melbourne, Australia, and has since expanded to operate in over 60 countries. Seek's primary operations include providing employment services such as job listings, resume building, and career advice to job seekers and employers. The company uses artificial intelligence to improve the accuracy and efficiency of its job matching services, as well as to provide insights and recommendations to job seekers and employers.

7. Kogan.com Ltd ($KGN)

Market Capitalisation: $463m

Stock price (as of 23/01/2023): $4.33

Stake Platform Bought / Sold (1 Jan 2022 - 23 Jan 2023): 63% / 37%

Kogan.com is an Australian e-commerce company that uses artificial intelligence to personalise the shopping experience for its customers, such as providing personalised product recommendations and customised pricing. The company was founded in 2006 in Melbourne, Australia, and has since expanded to operate in several countries. Kogan's primary operations include providing a wide range of products such as electronics, home appliances, and fashion items to customers.

8. BrainChip Holdings Ltd ($BRN)

Market Capitalisation: $1.1b

Stock price (as of 23/01/2023): $0.67

Stake Platform Bought / Sold (1 Jan 2022 - 23 Jan 2023): 61% / 39%

BrainChip is an Australian technology company that specializes in developing advanced artificial intelligence (AI) and machine learning solutions. The company's flagship product is the BrainChip Studio, a software platform that uses a unique form of AI called Neuromorphic computing. This technology mimics the neural structure and function of the human brain to enable ultra-low power and high-performance computing.

We dive in further into this company in our Under the Spotlight of BrainChip.

9. Tyro Payments Limited ($TYR)

Market Capitalisation: $771m

Stock price (as of 23/01/2023): $1.485

Stake Platform Bought / Sold (1 Jan 2022 - 23 Jan 2023): 70% / 30%

Tyro is an Australian fintech company that provides payment solutions to small and medium-sized businesses. The company was founded in 2003 in Sydney, Australia, and has since expanded to operate across Australia. Tyro was the first technology company to obtain a full Australian banking licence in 2016, also being able to operate as an Authorised deposit-taking institution (ADI). Tyro's primary operations include providing point-of-sale terminals, EFTPOS machines, and merchant services to customers in various industries such as retail, hospitality, and healthcare. The company uses artificial intelligence to improve the efficiency and security of its payment solutions, as well as to provide insights and recommendations to its customers.

10. REA Group Ltd ($REA)

Market Capitalisation: $12.26b

Stock price (as of 23/01/2023): $123.14

Stake Platform Bought / Sold (1 Jan 2022 - 23 Jan 2023): 68% / 32%

REA Group is a digital advertising company that uses artificial intelligence to improve the targeting and personalisation of its advertising campaigns. The company was founded in 1995 in Melbourne, Australia, and has since expanded to operate in Asia. REA Group's primary operations include providing digital advertising solutions such as property listings, display advertising, and data analytics to customers in various industries such as real estate, finance, and automotive. The company uses artificial intelligence to improve the targeting and personalisation of its advertising campaigns, as well as to provide insights and recommendations to its users.

How to invest in AI stocks in Australia?

There are a few ways to invest in artificial intelligence stocks in Australia. One way is to buy shares in ASX-listed companies that are involved in the development and use of AI and other machine learning tools. Another way to invest in AI is through exchange-traded funds (ETFs) that hold shares of companies involved in the artificial intelligence industry. If you are interested in artificial intelligence ETFs, then keep reading.

What artificial intelligence ETFs can I invest in?

There are no ETFs listed on the Australian Securities Exchange (ASX) that specifically track artificial intelligence companies. However, there are a number of ETFs that invest in tech companies, which may include companies that have a significant focus on artificial intelligence and machine learning. Some examples include the BetaShares Global Technology ETF ($TECH) and the SPDR S&P Global Technology ETF ($SFY).

If you expand your universe of artificial intelligence stocks from Australia to the NYSE and NASDAQ, there are a few options:

• Global X Robotics & Artificial Intelligence ETF ($BOTZ) - This ETF tracks the performance of companies that are involved in the development, production, or use of robotics and artificial intelligence.

• iShares Robotics and Artificial Intelligence ETF ($IRBO) - This ETF tracks the performance of companies involved in the development and application of robotics and artificial intelligence.

• First Trust NASDAQ Artificial Intelligence and Robotics ETF ($ROBT) - This ETF tracks the performance of companies involved in the artificial intelligence and robotics industries.

• Global X Internet of Things ETF ($SNSR) - This ETF tracks the performance of companies that are involved in the Internet of Things (IoT) technology, which is closely related to AI.

• ARK Innovation ETF ($ARKK) - This ETF tracks companies that are working on disruptive innovation, which include companies working on AI, automation, and other cutting-edge technologies.

💡Related: Top Metaverse ETFs to watch→

💡Related: Are these the best tech stocks to watch?→

Summary:

• The increasing adoption of artificial intelligence technology across various industries is driving the growth of AI-related stocks listed on the ASX. Companies such as Appen, WiseTech Global, and Xero are at the forefront of this trend, providing training data, software solutions, and AI-powered services to a wide range of customers.

• The ASX is home to a diverse range of AI-related stocks, covering industries such as technology, healthcare, logistics, and banking. This provides investors with a wide range of options for investing in the AI sector and allows them to potentially diversify their portfolio by investing in companies with different business models and revenue streams.

• Buying ASX shares in the AI industry can provide investors with the potential for strong returns, as the demand for AI technology is expected to continue growing in the future. However, it's important to conduct thorough research and due diligence before investing in any stock, to understand the company's business model, growth prospects, and potential risks.

Artificial Intelligence stocks FAQs

What industries is AI used in?

Artificial Intelligence (AI) is a broad field that can be applied to a wide range of industries. Here are some examples of industries that use AI:

• Healthcare: AI is used in healthcare to improve patient care, such as through the development of diagnostic tools and personalised treatment plans.

• Finance: AI is used in finance to detect fraud, make investment decisions, and analyse financial data.

• Retail: AI is used in retail to personalise customer experiences and optimise supply chain management.

• Automotive: AI is used in the automotive industry for the development of autonomous vehicles and for the optimisation of manufacturing processes.

• Agriculture: AI is used in agriculture to optimise crop yields, predict crop failures and improve animal breeding.

• Energy: AI is used in energy to optimise the efficiency of power plants and predict maintenance needs.

• Manufacturing: AI is used in manufacturing to optimise production processes, predict equipment failure and improve quality control.

• Transportation: AI is used in transportation to optimise logistics and improve the efficiency of supply chain management.

• Marketing: AI is used in marketing to personalise advertising, predict customer behaviour, and optimise marketing strategies.

• Cybersecurity: AI is used in cybersecurity to detect and prevent cyberattacks and analyse network data.

This is not an exhaustive list, and AI is being used in various other industries as well. Additionally, the AI field is rapidly evolving, and new applications are being developed constantly.

What is the forecast for AI shares in 2023?

The future performance of AI shares will depend on a variety of factors, such as the overall health of the economy, the success of individual companies in the field, and developments in the industry as a whole. Additionally, investing in the stock market always involves risks and past performance is not a guarantee of future returns.

This does not constitute financial product advice nor a recommendation to invest in the securities listed. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking appropriate financial or taxation advice before investing.