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

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

| More on:
A chip in a circuit board says "AI"

Source: Getty Images

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.

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.

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.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Andrew Button has positions in Alphabet and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Alphabet, Kinaxis, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

More on Tech Stocks

Person uses a tablet in a blurred warehouse as background
Tech Stocks

Check Out This Soaring Stock, Up 29% From 52-Week Lows, With More Gains Likely to Come

This top tech stock is now up 29% from lows, but still down 12% in the last year. And it…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Up 50% From its 52-Week Low, Is Shopify Stock Still a Buy?

Shopify (TSX:SHOP) stock has been both a winner and loser on the TSX, but after a recent upgrade, could it…

Read more »

Dollar symbol and Canadian flag on keyboard
Tech Stocks

2 Canadian Stocks to Watch While They’re Still Dirt Cheap

These two Canadian stocks offer ample opportunities as the world shifts into not just AI but cybersecurity needs.

Read more »

A stock price graph showing growth over time
Tech Stocks

1 Hidden Catalyst That Could Ignite Dye & Durham Stock 

Dye & Durham stock surged more than 15% in the last two weeks. What is igniting the growth after a…

Read more »

a person searches for information on the internet
Tech Stocks

Before You Buy Nvidia: Here’s An AI Stock I’d Buy First 

Nvidia is the first stock that comes to your mind for AI. However, consider diversifying your AI stocks across the…

Read more »

edit Woman calculating figures next to a laptop
Tech Stocks

How to Buy UiPath Stock in Canada

UiPath is a beaten-down AI stock that trades at a massive discount to its earnings growth. Is the tech stock…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Is It Still Prudent to Invest in Shopify Stock?

Let's dive into whether Shopify (TSX:SHOP) remains a top TSX stock investors should consider, or if this company may be…

Read more »

edit Businessman using calculator next to laptop
Tech Stocks

Which TSX Stock Is Best to Buy Today? 

The stock market is going green with optimism over hopes of economic recovery. You can benefit from this rally with…

Read more »