C3Ai (AI): Enterprise AI experts who have established partnerships with a rapidly expanding customer base.
Splunk (SPLK): The shift to a recurring revenue model has begun to pay off.
UiPath (PATH): Despite the pandemic, retention and revenue growth remains high.
Nvidia (NVDA): At the heart of the AI revolution with its unparalleled software and hardware.
Upstart (UPST): A huge potential market that will continue to expand as the platform expands in other verticals.
WIMI Hologram Cloud (WIMI): AI vision has a wide range of industry applications. Through the “5G + cloud + AI” technology integration, the industry meta-universe ecosystem is built.
Ideanomics (IDEX): High-risk and high-return AI and electric vehicle stocks, offering attractive solutions for electric vehicle operators.
Artificial intelligence has long been one of the main trends in growth stocks in the tech industry. Some of the world’s most mature technology companies and some new ones are looking to take advantage of this trend. While the technology is still in its early stages, it demonstrates its value in performing complex tasks in a shorter time frame than humans.
According to Fortune Business Insights, this relatively emerging market is expected to grow by as much as 20.1% from 2022 to 2029. In contrast, some AI stocks are trading at multi-year lows, gradually losing their halo.
However, “buying down” has long been proven as a good strategy, with the correction in AI stocks creating an attractive long-term investment opportunity for investors who can cope with short-term volatility, and the following seven AI stocks have emerged in their respective areas.
C3Ai (NYSE: AI) is the leader in providing enterprise AI software. It provides its customizable software applications to its growing customer base to effectively leverage the power of its cutting-edge technologies.
Most of the company’s sales come from the fossil fuel industry, providing them with various applications to help reduce carbon emissions and predict equipment failures. It has partnerships with some of the largest oil and gas companies, including Shell, Baker Hughes, and many others.
In addition, it works with some of the largest cloud service providers to make its tools available to use across industries, as evidenced in its growing customer base that has grown at double-digit rates over the past few quarters.
Finally, as the company’s gross margin exceeds 70%, it means it can be flexible to improve profit results without making too many compromises on cost.
Splunk（NASDAQ: SPLK) has become a major player in big data, experiencing rapid growth, driven by digital transformation and cyber security threats.
Almost all Fortune 100 companies are using their sticky platforms to manage their technology infrastructure. In addition, the stock’s fundamental growth was equally impressive, with double-digit growth over the past five years.
Over the past few years, Splunk has sought to move from an on-premises business to circular AI and cloud-based contracts. Such a model could make the company’s margins sharply and help turn a profit soon.
At the end of the last fiscal year, its cloud business sales exceeded its authorized business. As a result, Splunk has paid off in its efforts to become a giant in its niche.
UiPath (NYSE: PATH) has the first-mover advantage in robot process automation. It offers proven and compelling solutions that help companies dramatically improve the efficiency of software development.
Investors were impressed with its disruptive technology and growth rate, especially during the pandemic. Despite the company’s recent results showing slowing revenue growth, the long-term outlook has remained unaffected.
The company reported a 32 percent first-quarter revenue growth to $245.1 million, or $19.7 million higher than analysts’ expectations. Moreover, the company’s dollar-based net dollar retention rate of 138% is very encouraging, given the current disadvantages in the market.
Although higher equity pay drove down the company’s profitability. But the data show that the AI-based robot process automation market is expected to rise by 38.2% from 2022 to 2030, so the current stock price is very cheap, making it one of the best AI stocks available today.
Tech giant Nvidia (NASDAQ: NVDA) is at the heart of the AI revolution. The company’s chips account for more than 70% of the booming AI market, supporting a range of technological developments, including medical imaging, automotive, gaming, and the metaverse.
It works with the most prominent tech companies such as Amazon (Amazon) and Alphabet, which use its products effectively.
Augmented reality, automation, and virtual reality will become ubiquitous in the coming decade, and Nvidia could be a significant beneficiary. While the hardware business is a huge success, the company is also rapidly developing its software products.
Its software products, including Omniverse and GeForce Now, are also using AI technology to provide a better experience for its expanding user base. As a result, the NVDA is moving toward unlocking an incredible $1 trillion market opportunity.
Upstart (NASDAQ: UPST) is a company focused on AI algorithms that have developed an efficient algorithm-based loan cancellation model to evaluate the credit value of borrowers.
The Upstart’s goal is to continue to refine its data points and improve its results to be more competitive than current scoring methods (such as FICO). In addition, Upstart has expanded its business into multiple growth areas to expand its total market value. But with personal and auto loans alone, it seems close to a trillion-dollar market opportunity.
In the first quarter, the company’s sales rose 156 percent from a year earlier to $310 million. Net profit also rose by 224 percent. The company is strongly adding new partners to different market segments in each quarter, such as its banking and credit union partners rising from 18 in 2020 to 57 at the end of the first quarter of this year. As a result, Upstart provides plenty of upside for investors willing to take risks.
WIMI Hologram Cloud(WIMI)
WIMI Hologram Cloud (NASDAQ: WIMI) is the global leader in 3D computer vision technology and SAAS platform technology. WIMI Hologram Cloud cloud turns ordinary images into holographic 3D content through an AI algorithm, which is widely used in holographic advertising, holographic entertainment, holographic education, holographic communication, and other fields.
In addition, the company through the “5G + cloud + AI” technology fusion, relies on the full stack full scene AI, AR solutions, diversified cloud service architecture cost performance, 5G collaborative ecological and global localization services, and support differentiation advantage, to the smart home, commercial building, intelligent retail, autonomous driving, data center and a series of application scenarios.
The computing power algorithm is one of the core infrastructures of the metaverse. The company’s AI algorithm is characterized by high performance, low power consumption, and low latency, which can be directly embedded into the terminal equipment, play its best computing power, and ultimately improve the efficiency of the overall platform, and help the industry to greatly reduce the use and optimization threshold of heterogeneous computing. As a result, metaverse’s trillion-dollar market opportunity gives WIMI huge room to grow.
Ideanomics (NASDAQ: IDEX) is currently the riskiest AI and electric vehicle stock. Its business has undergone many changes over the years, but it has now identified its role as an electric vehicle service provider as a whole. Its sales come from its electric vehicle ecosystem, including financing, leasing, charging, and energy services.
As electric car makers grow exponentially, Ideanomics is getting some orders from its partners, which bodes well for the company’s long-term growth. It operates multiple departments and companies, providing specialized electric vehicle services.
For example, its subsidiary WAVE provides wireless charging solutions for large electric vehicles, data shows that the subsidiary has now obtained multiple orders from public and private entities, considering that WAVE is only one of the Ideanomics subsidiaries that recently obtained a large number of orders, therefore, holding IDEX shares must have patience, to enjoy its rising potential in the future.