Artificial intelligence (AI) is one of the most disruptive and innovative technologies of our time. It has the potential to revolutionize various industries, from health care to entertainment, and create new opportunities for growth and value creation. According to a report by Grand View Research, the global AI market size is expected to reach $733.7 billion by 2027, growing at a compound annual growth rate (CAGR) of 42.2%¹.
However, not all AI stocks are created equal. Some are more established and stable, while others are more speculative and risky. Some are focused on specific niches, while others are diversified and scalable. Some are leaders in their fields, while others are followers or challengers. To help you navigate the complex and dynamic AI landscape, we have selected three AI stocks that we believe have the potential to transform your portfolio and make you a millionaire in the long run. These are:
- Nvidia Corp. (NVDA)
- C3.ai Inc. (AI)
- UiPath Inc. (PATH)
Nvidia Corp. (NVDA)
Nvidia is the undisputed leader in the graphics processing unit (GPU) market, which is essential for powering AI applications such as machine learning, computer vision, natural language processing, and gaming. Nvidia’s GPUs are used by some of the biggest names in tech, such as Microsoft, Google, Amazon, and Meta Platforms². Nvidia also offers its own AI platforms, such as CUDA, TensorRT, and Jetson, which enable developers and researchers to create and deploy AI solutions across various domains³.
Nvidia has been on a tear in the past year, delivering a staggering 236.6% return to its shareholders⁴. The company has been benefiting from the strong demand for its products and services amid the pandemic, which has accelerated the adoption of AI and cloud computing. Nvidia has also been expanding its presence in new and emerging markets, such as automotive, health care, and edge computing, through strategic partnerships and acquisitions. For example, in April 2020, Nvidia announced its plan to acquire Arm Holdings, a leading provider of semiconductor intellectual property, for $40 billion⁵. The deal, if approved, would give Nvidia access to Arm’s vast network of customers and partners, and enable it to create more integrated and efficient AI solutions.
Nvidia is not resting on its laurels, however. The company is constantly investing in research and development, and launching new and improved products and services. For instance, in October 2020, Nvidia unveiled its next-generation GPU architecture, called Ampere, which delivers up to 20 times more performance than its predecessor, Turing. Nvidia also introduced its new AI software, called Omniverse, which allows users to create and collaborate on virtual worlds in real time.
Nvidia is a clear winner in the AI space, and we believe it will continue to dominate the market and deliver stellar returns to its investors in the future.
C3.ai Inc. (AI)
C3.ai is a relatively new player in the AI market, but it has already made a name for itself as a leading provider of enterprise AI software. C3.ai’s platform enables organizations to build, deploy, and operate AI applications at scale, and across various industries, such as energy, manufacturing, health care, and financial services. C3.ai’s platform leverages big data, cloud computing, and machine learning to deliver actionable insights and recommendations that improve operational efficiency, customer satisfaction, and revenue growth.
C3.ai went public in December 2020, and since then, it has delivered a remarkable 153.4% return to its shareholders⁴. The company has been growing rapidly, thanks to its strong customer base, which includes some of the world’s largest and most reputable companies, such as Shell, Baker Hughes, Engie, and 3M. C3.ai has also been forming strategic alliances and partnerships with other tech giants, such as Microsoft, Google, IBM, and Adobe, to expand its reach and capabilities.
C3.ai is not without challenges, however. The company faces intense competition from other AI players, such as Salesforce, Oracle, and Amazon, which offer similar or complementary solutions. C3.ai also operates in a highly regulated and complex environment, which may pose legal and ethical risks. Moreover, C3.ai is not yet profitable, and it may take some time before it achieves consistent and sustainable profitability.
C3.ai is a risky but rewarding bet in the AI space, and we believe it has the potential to become a leader and disruptor in the enterprise AI market.
UiPath Inc. (PATH)
UiPath is another newcomer in the AI market, but it has already established itself as a leader and pioneer in the field of robotic process automation (RPA). RPA is a form of AI that automates repetitive and mundane tasks, such as data entry, invoice processing, and customer service, by using software robots or bots. UiPath’s platform enables users to design, build, manage, and monitor their own bots, and integrate them with other applications and systems.
UiPath went public in April 2021, and since then, it has delivered an impressive 84.2% return to its shareholders⁴. The company has been growing at a phenomenal rate, thanks to the surging demand for its products and services amid the pandemic, which has forced many organizations to adopt digital transformation and automation. UiPath has more than 9,000 customers, including 80% of the Fortune 10 and 63% of the Fortune Global 500. UiPath has also been expanding its product portfolio and capabilities, by adding new features and functionalities, such as document understanding, chatbots, and AI fabric.
UiPath faces some challenges, however. The company operates in a highly competitive and fragmented market, which includes other RPA players, such as Automation Anywhere, Blue Prism, and Microsoft. UiPath also faces the risk of technological obsolescence, as new and emerging technologies, such as conversational AI, computer vision, and natural language processing, may render some of its solutions obsolete or less effective. Furthermore, UiPath is not yet profitable, and it may experience fluctuations in its revenue and margins, due to its subscription-based and seasonal business model.
UiPath is a bold and innovative bet in the AI space, and we believe it has the potential to become a dominant and disruptive force in the RPA market.
Conclusion
Artificial intelligence is a game-changing and lucrative technology that can transform various industries and create new opportunities for growth and value creation. However, not all AI stocks are created equal. Some are more established and stable, while others are more speculative and risky. Some are focused on specific niches, while others are diversified and scalable. Some are leaders in their fields, while others are followers or challengers.
We have selected three AI stocks that we believe have the potential to transform your portfolio and make you a millionaire in the long run. These are:
- Nvidia Corp. (NVDA), the undisputed leader in the GPU market, which powers AI applications across various domains.
- C3.ai Inc. (AI), a relatively new player in the enterprise AI software market, which enables organizations to build, deploy, and operate AI applications at scale.
- UiPath Inc. (PATH), another newcomer in the RPA market, which automates repetitive and mundane tasks by using software robots or bots.
These three AI stocks are not without risks, however. They face intense competition, technological obsolescence, regulatory uncertainty, and profitability issues. Therefore, investors should do their own due diligence, and invest only what they can afford to lose.
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¹: Global Artificial Intelligence Market Size, Share & Trends Analysis Report By Solution, By Technology, By End Use, By Region And Segment Forecasts, 2020 – 2027
²: Artificial Intelligence Stocks: The 10 Best AI Companies
³: [NVIDIA AI Platforms]
⁴: Best AI Stocks Of January 2024 – Forbes Advisor
⁵: [NVIDIA to Acquire Arm for $40 Billion, Creating World’s Premier Computing Company for the Age of AI]
: [NVIDIA Launches Ampere Architecture, Driving a Giant Leap for Every Sector of Enterprise Computing]
: [C3.ai – Enterprise AI]
: [C3.ai Customers]
: [C3.ai Partners]
: [UiPath – Robotic Process Automation]
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Source:
3 Stocks Capitalizing on the Artificial Intelligence Boom. https://markets.businessinsider.com/news/stocks/3-stocks-capitalizing-on-the-artificial-intelligence-boom-1033002073
3 Artificial Intelligence Stocks to Buy as the Technology Advances in 2024. https://markets.businessinsider.com/news/stocks/3-artificial-intelligence-stocks-to-buy-as-the-technology-advances-in-2024-1032998857
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