Supercharging Your Portfolio: The Best AI Stocks for Explosive Growth

AI stocks such as Microsoft and Nvidia should be on your watchlist in June 2023. Let’s see why.

| More on:
Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept

Image source: Getty Images

AI, or artificial intelligence, stocks have had a stellar run in recent months. Generally, AI is powered by machine learning, which basically trains systems with vast amounts of data. The trained system is then used to develop applications across verticals and industries. OpenAI’s ChatGPT was launched in late 2022 and showcased the supremacy of generative AI as well as large language models.

Investor optimism surrounding AI stocks is huge, and for good reason. The AI space will be worth more than US$1 trillion by the end of 2030, providing early movers with a great chance to drive top-line growth.

Here are the best AI stocks you can buy for explosive growth in 2023 and beyond.

Microsoft stock

One of the largest companies in the world, Microsoft (NASDAQ:MSFT), is a well-diversified tech giant. It first invested in OpenAI back in 2019 and plowed in another US$10 billion recently following the blockbuster launch of ChatGPT.

Its search engine, Bing, is integrated with ChatGPT allowing Microsoft to significantly increase ad sales and gain market share from Google. Microsoft is now looking to incorporate ChatGPT with products such as Azure and its Office productivity suite.

MSFT stock has already surged 43% year to date and is up over 1,000% in the last decade.

NVIDIA stock

Due to the AI buzz, Nvidia (NASDAQ:NVDA) stock has almost tripled year to date. Trading at record highs, the semiconductor giant has now gained over 12,000% since June 2003, easily crushing broader market indices.

Now valued at over US$1 trillion in terms of market cap, Nvidia’s graphics chips will be used to train data-intensive machine learning platforms and large language models.

Nvidia is part of several growth markets, such as gaming and autonomous driving, making it one of the hottest tech stocks globally.

Docebo stock

A TSX stock part of the e-learning vertical, Docebo (TSX:DCBO) is up 211% since its initial public offering in 2019. Docebo has already onboarded approximately 3,500 enterprises on its AI-based e-learning platform, enabling the company to increase sales by 37% year over year in 2022.

In addition to an expanding customer base, the average contract value for Docebo has also increased by 30% in the last three years. This suggests companies are increasing spending on the Docebo platform, allowing it to benefit from improving profit margins.

It generates over 90% of sales via subscriptions, enabling Docebo to generate predictable cash flows across market cycles.

Down 60% from record highs, DCBO stock trades at a discount of 40% to consensus price estimates.

C3.ai

The final AI stock on my list is C3.ai (NYSE:AI). Similar to NVDA stock, C3.ai has gained 300% in 2023. A SaaS (software-as-a-service) company, C3.ai allows its base of enterprise clients to deploy AI applications effectively.

It offers a portfolio of tools for enterprises to enhance overall productivity at a lower cost. It will soon be launching a suite of AI-backed solutions, such as enterprise search, where companies can use natural language interfaces and retrieve relevant data sets from systems.

C3.ai is well poised to benefit from a first-mover advantage and deliver market-thumping gains to shareholders.

But AI stock trades at a premium of over 40% to price target estimates.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends C3.ai, Docebo, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

More on Tech Stocks

Lady holding mobile phone and shopping bags
Tech Stocks

The Ultimate Growth Stock to Buy With $1,000 Right Now 

Here's why Shopify (TSX:SHOP) could be the ultimate growth stock long-term investors want to consider at this current point in…

Read more »

Hands shaking over a business deal
Tech Stocks

Meet the Growth Stock I Can’t Stop Buying This Year

Topicus stock (TSXV:TOI) has been a top growth stock this year, with strong finances, a stable acquisition strategy, and more…

Read more »

grow dividends
Tech Stocks

Celestica Stock Is up 44% Since Earnings: What Investors Need to Know

Celestica continues to benefit from strong demand and production efficiencies, yet the stock remains undervalued.

Read more »

healthcare pharma
Tech Stocks

What’s Going on With WELL Health Stock?

WELL stock (TSX:WELL) made strong moves once again, with record earnings and even higher guidance for 2024.

Read more »

A shopper makes purchases from an online store.
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Based on these three top reasons, Shopify (TSX:SHOP) stock appears undervalued to buy right now.

Read more »

stock research, analyze data
Tech Stocks

What’s Going on With Lightspeed Stock?

Lightspeed (TSX:LSPD) stock has been climbing once more but is still far from its three-digit share price. So, is it…

Read more »

Target. Stand out from the crowd
Tech Stocks

Missed Out on Nvidia Stock (Again)? Buy Descartes Instead

Nvidia (NASDAQ:NVDA) stock soared yet again after earnings, passing the four-digit mark. But with shares so high, maybe this option…

Read more »

Group of people network together with connected devices
Tech Stocks

This Is the Best Overlooked AI Stock on the TSX Today

This AI stock has been a top growing in the last while, but remains overlooked despite its strong portfolio and…

Read more »