Artificial intelligence (AI) stocks represent investing in the next technology frontier, as companies try to integrate AI to maximize efficiency. This has led to a massive bull market, with even sector giants jumping into the mix. This has led to multiple companies seeing triple-digit growth.
While I can’t promise such returns on the investments recommended here, I will say that multiple technology-centric companies that also have AI offshoots are positioned to see massive growth, and not just throughout this month too. They could be long-term holds.
An overall bull market coming into the third quarter of the year is also a positive indicator of growth. With earnings coming up for most companies, now is the best time to get positioned in companies; before the positive (or potentially negative) earnings reports are priced in.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) designs graphics processing units (GPUs) for gaming and professional markets and has expanded into AI, high-performance computing, and data centers. Its innovations include CUDA, which accelerates computing tasks in various fields, from scientific research to autonomous vehicles.
NVDA’s financials are great. Its profit and operating margins are through the roof (53.40% and 64.93% respectively) and it has a year-on-year (YOY) quarterly revenue growth of 262.10% and a YOY quarterly earnings growth of 628.40, indicating that earnings have grown by more than 6 times; NVDA stock has consistently beaten EPS margins over the past year by huge margins.
Nvidia recently launched the world’s first functionally safe AI self-driving platform, Nvidia DRIVE, which includes advanced deep learning and computer vision algorithms to enhance the safety and performance of autonomous vehicles. Additionally, Nvidia’s data centers are seeing increased chip usage due to the growing demand for AI and high-performance computing applications. Given these advancements and the strong financial performance, Nvidia continues to be a promising investment opportunity.
Apple (AAPL)
Apple (NASDAQ:AAPL) designs, manufactures, and markets consumer electronics, software, and services, including iPhone, iPad, and Mac, and services like iCloud, Apple Music, Apple Pay, and Apple TV+. The company has recently announced ‘Apple Intelligence’, their latest initiative to integrate AI and machine learning across their product ecosystem.
AAPL stock is trading at $226.34, with a market cap of $3.471 trillion, making Apple the second largest company by market cap. The company’s financials and growth are solid; it has seen revenue and earnings increase by considerable amounts. AAPL has a profit margin of 26.31%, with an operating margin of 30.74%. It also has a return on equity of 147.25%, indicating management’s effectiveness. AAPL has also consistently beaten stock predictions over the past year, a testament to the resilience and growth aspects of the company.
With the new AI products only being compatible with their newest range of iPhone 15 Pro models, I expect to see revenue growth when users with outdated iPhones rush to get their hands on the newest models. Stepping into the AI market would be the catalyst for Apple which could skyrocket their stock price. That’s why AAPL stock remains one of the best artificial intelligence stocks to buy.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is an American multinational technology company best known for its software products like the Windows operating system. Some other products include the Microsoft 365 suite, the Azure cloud computing platform, and the Edge web browser.
MSFT stock is currently trading at $467.56, with a market cap of $3.475 trillion. This currently makes it the largest company in the world by market cap. Microsoft, like every other stock on this list, has amazing financials. Moreover, MSFT has a profit and operating margin of 36.43% and 44.59% respectively. Its beta value is 0.89, which makes MSFT stock a relatively stable investment. Finally, It has consistently beaten EPS predictions over the past year, with an average surprise of 7%.
Through its investment in OpenAI, the leader in the development of advanced artificial intelligence technologies, and the development of AI technologies like Copilot, MSFT stock promises consistent and stable returns, making it one of the best artificial intelligence stocks to buy right now.
On the date of publication, Achintya Pasricha did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.