Here Are My Top Artificial Intelligence (AI) Stocks to Buy in July

Kinaxis Inc (TSX:KXS) is an AI stock worth considering in July.

Andrew Button

Author Bio

Andrew “A.J.” Button is a financial writer with a longstanding interest in value investing and international markets. He began investing at a young age, building a portfolio of dividend stocks to help pay for university. After stepping away from investing for a time, he rediscovered his passion in 2019 when he began working as a freelance financial writer. Since then, Andrew has built a diversified investment approach spanning Canadian, U.S., and international equities, as well as guaranteed investment certificates (GICs) and money market funds. He is particularly interested in international stocks, drawn to their dividend potential and long-term growth opportunities, while maintaining an interest in Canadian businesses. Before joining The Motley Fool, Andrew worked as a freelance copywriter specializing in financial services. He continues to write for financial publications and share his thoughts on stocks through social media.

Education and Professional Credentials

Canadian Securities Course (CSC)
CFA Program Level I examination completed

Areas of Expertise

Value investing, Canadian equities, U.S. stocks, international equities, dividend investing, long-term investing, GICs, money market funds, and portfolio diversification.

Social Media Profiles

Published June 27, 2024 8:30 pm EDT

July is just around the corner, and you know what that means:

Big tech earnings season!

Next month, all of the big U.S. technology companies (and several Canadian ones) will be reporting their earnings for the second quarter, the quarter ended June 30. In these earnings releases, we will get to see whether Big Tech is making as much money off AI as the headlines say it should, or falling behind. We can be reasonably confident that NVIDIA (NASDAQ: NVDA) will do a lot of growing in the second quarter; the others are more of a grey area. In this article, I explore the three tech stocks I’d be most eager to buy in July, starting with NVIDIA’s manufacturer.

A chip in a circuit board says "AI" — Source: Getty Images

Taiwan Semiconductor

Taiwan Semiconductor Manufacturing (NYSE: TSM) is a Taiwanese semiconductor company that manufactures chips for NVIDIA, Apple (NASDAQ: AAPL), and so many more. It is the world’s dominant semiconductor foundry (“foundry” means manufacturer, especially one like TSM that doesn’t also design chips). Because it does not design chips, Taiwan Semi lacks the conflicts of interest that sometimes prevent its competitors from acquiring business from big companies.

Taiwan Semiconductor is doing quite well as a business this year. Thanks to its NVIDIA business, its revenue has been ticking up month after month. It will also likely get a lot of business from Apple’s “Apple Intelligence” suite of features, which will be embedded inside iPhone 15 models and later. So, there’s a lot of ways for TSM to make money here.

Google/Alphabet

Alphabet Inc (NASDAQ: GOOG) is America’s fourth biggest tech company. Better known as “Google,” it has had AI embedded into its products for years. Examples of Google products incorporating AI include Google Search, Youtube, and Google Cloud.

Google also recently launched its very own ChatGPT competitor, Gemini. The app has gotten mixed reviews so far, but nevertheless has become the sixth most popular AI app globally.

Google’s financial performance has been impressive lately. In its most recent quarter, the company delivered:

$80.5 billion in revenue, up 15%.
$25.4 billion in operating income, up 32%.
$1.90 in earnings per share, up 72%.

Kinaxis

Kinaxis (TSX: KXS) is Canada’s very own AI software compounder. It develops supply chain management software. Kinaxis services like RapidResponse allow businesses to keep track of key supply chain variables like inputs, inventory, and customer buying patterns.

Kinaxis has been building supply chain software since the 1980s. It started incorporating AI into its apps more recently. The company’s services provide valuable supply chain data. Today, they have AI too. So now, for example, you can have RapidResponse forecast inventory needs using customer purchasing data. In the past, you’d have had to do this manually.

Foolish takeaway

The world of generative AI has plenty of options – ChatGPT, Gemini, Bing, Midjourney. The list just goes on and on. In AI stocks, too, there are plenty of opportunities. Most know about NVIDIA, and there are plenty of others. If you’re looking for good AI stocks to invest in today, any of the names mentioned in this article are worth looking into further.