Artificial intelligence (or AI) is changing just about everything. According to PwC, this sector could represent a $15.7 trillion opportunity for investors by 2030. In fact, the company noted, “As humans and machines collaborate more closely, and AI innovations come out of the research lab and into the mainstream, the transformational possibilities are staggering.” Thus, there are myriad AI stocks worth considering for those with a long-term investing time horizon.
In the healthcare sector, AI could support diagnoses with small variations in patient health data, help identify potential pandemics, assist in imaging diagnostics, and even help with choosing medications. All could help pave the way for substantial medical breakthroughs. AI stocks could also benefit from the transformation underway in the auto industry toward autonomous cars. It could help personalize learning in schools. AI could advance video games, and much more.
In financial services, artificial intelligence is being used to detect fraud. Insurance companies are relying on AI for claims. Supply chains are using AI to power the entire supply chain and logistics process. Advertisers are using AI to predict consumer demand, and even help handle the entire shopping experience. It may be able to help pick stocks far better than humans.
Microsoft (NASDAQ:MSFT) CEO Satya Nadella once noted that AI is the “defining technology of our times,” as quoted by CNBC, with a capability of changing the way we drive our cars, automate our factories, create jobs, and even help improve our healthcare.
Point is, AI stocks provide investors with exposure to this game-changing industry. For those looking to profit from the growth that will undoubtedly unfold, here are three AI stocks worth buying right now.
| NVDA | Nvidia | $168.99 |
| BOTZ | Global X Robotics & Artificial Intelligence ETF | $22.49 |
| AI | C3.ai | $12.65 |
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is one of the most essential pieces of the AI puzzle. After all, this is the company providing the processing power needed to run AI applications. And because of that, Nvidia should see continue to benefit from the massive growth of the AI market.
Even Morgan Stanley (NYSE:MS) analysts will tell you, “NVIDIA is the leader in accelerated compute and the key enabler for AI across vertical industries – full stop,” said the firm, as quoted by Barron’s. Cowen analysts note NVDA is a key enabler for AI across various verticals in other industries.
Even better, Nvidia just partnered with Microsoft to build one of the most powerful AI supercomputers in the world. These computers will be powered by Azure’s supercomputing infrastructure, as well as Nvidia’s GPUs. According to Manuvir Das, vice president of enterprise computing at NVIDIA, “Our collaboration with Microsoft will provide researchers and companies with state-of-the-art AI infrastructure and software to capitalize on the transformative power of AI.”
Global X Robotics & Artificial Intelligence ETF (BOTZ)
An AI ETF is another great idea. Instead of buying a group of individual AI stocks, why not own the entire sector?
With the Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ), for example, investors can gain a good deal of exposure to AI, diversifying their portfolio at a relatively low cost.
With an expense ratio of 0.68%, The Global X Robotics & Artificial Intelligence ETF (BOTZ) seeks to invest in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence (AI), including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles, according to Global X.
Some of its top holdings include Nvidia, Intuitive Surgical (NASDAQ:ISRG), SMC Corporation (OTCMKTS:SMCAY), iRobot Corporation (NASDAQ;IRBT), and Accuray (NASDAQ:ARAY). While the BOTZ chart has seen better days, give it time. Much of the recent tech rout and negativity has already been priced in. Now, as this ETF starts to perk back up, I’d like to see the ETF break above resistance around $24 and test the $30 level.
C3.ai (AI)
C3.ai (NYSE:AI) is the Enterprise AI application software company. At the moment, the company delivers fully integrated products. These include the C3 AI Suite, an end-to-end platform for developing, deploying, and operating enterprise AI applications. Additionally the company offers a range of other C3 AI Applications, a portfolio of industry-specific SaaS enterprise AI applications that enable the digital transformation of organizations globally, as noted by the company.
Booz Allen Hamilton (NYSE:BAH) just announced a new alliance with C3.ai to help federal clients solve their most complex problems using enterprise AI. The two could help accelerate the digital transformation of mission readiness, logistics, and intelligence.
The company’s earnings have been solid, too. In the second quarter of 2023, C3.ai reported total revenue of $62.4 million – an increase of 7% year over year. Subscription revenue for the quarter was $59.5 million, an increase of 26% compared to $47.4 million in the same quarter last year. Also, GAAP gross profit for the quarter was $41.7 million, representing a 67% gross margin, compared to GAAP gross profit of $42.3 million one year ago.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.