In recent years, an increasing number of companies have incorporated artificial intelligence (AI) and robotics into their business structures. As the world moves towards digitization, it is clear that firms who do not use AI or do not aim to do so in the near future risk being obsolete or falling behind. In summary, investor interest in AI stocks is increasing.
AI, automation, and robotics have recently disrupted practically every industry. There are numerous AI stocks to pick from within this wide secular growth trend. Here are three of the best AI stocks to buy now.
Microsoft
To begin, Microsoft (NASDAQ: MSFT) is a worldwide tech company. In a nutshell, Microsoft creates, licenses, and sells computer software, consumer electronics, and personal computers. It has a large presence in the AI market through its AI platform, Azure, which provides businesses and developers with cloud-based AI services and tools. Microsoft’s portfolio of AI-powered goods and services is also expanding.
The term “Internet of Things” refers to the process of transferring data from one computer to another. When it comes to earnings per share, the technology business beat expectations with $2.32 per share, which was more than the expected $2.27 per share. Despite generating total sales of $52.7 billion in the second quarter of 2023. Furthermore, the organization demonstrated growth with a 2% rise in revenue over the prior year.
Microsoft stock has gained more than 5% year to date.
Alphabet
The parent company of Google, Alphabet (NASDAQ: GOOGL), is a tech company that focuses on internet-related services and products. It is a market leader in artificial intelligence, with its AI subsidiary, DeepMind, making substantial advances in the field.
Alphabet released its fourth-quarter (Q4) 2022 and full-year 2022 financial figures earlier this month. In particular, the IT titan posted Q4 2022 earnings of $1.05 per share on $76 billion in revenue. Unfortunately, this fell short of the average projections for the quarter, which called for earnings of $1.14 per share and revenue of $76.6 billion. Furthermore, Alphabet recorded a 1% gain in sales over the same period last year.
GOOGL stock has increased by more than 3% since the start of 2023.
Palantir Technologies
Due to the widespread fraud on the platform in the early years of PayPal, the company nearly went out of business. But Co-Founder and Chief Executive Officer Peter Thiel used cutting-edge analytics and AI to address the issues. These technologies were quite effective, and in 2002 PayPal sold them to eBay for $1.5 billion.
Thiel recognized that the AI technology had additional uses, such as in systems that might spot terrorist threats or dangers on the battlefield. He founded Palantir Technologies (NYSE:PLTR) with money he received from the PayPal windfall.
During the wars in Afghanistan and Iraq, the government would still be crucial for Palantir, but the business has subsequently diversified into commercial areas. They cross numerous sectors, including industry, energy, and healthcare.
The Foundry system is at the centre of this. For the data of an organization, Palantir views it as an operating system. The system aids in the development, implementation, and management of AI models.
Palantir reported a 66% increase in customers and a 22% rise in revenue during the third quarter of its fiscal year. The adjusted free cash flow, which was $37 million, was positive for the seventh consecutive quarter.
Palantir stock has gained more than 33% so far this year.
