3 Artificial Intelligence Stocks Set to Mint New Millionaires

Stocks to buy

Are you interested in AI but don’t know where to start? I can’t blame you. Researching artificial intelligence stocks can be overwhelming. To cut through the noise, I prefer to look to the analysts who share their insight on certain assets through ratings. This gives us an easier way to identify quality stocks, with an indication of how high they could go.

Ratings help investors make a qualitative, apples-to-apples comparison of stocks. Analysts rate stocks on a scale of strong sell and rise to a sell, hold, buy, with strong buy being the highest. Naturally, those with strong buy ratings are considered the cream of the crop.

However, ratings aren’t everything. Investors should still err on the side of caution and conduct their due diligence, as highly rated artificial intelligence stocks don’t automatically mean it’s a sure winner. Ratings are just a piece of the puzzle that can complement your stock selection process. But they are a good place to start.

So, today, I will look at three buy-rated AI stocks with great potential. To get my list, I screened the market and used the following criteria below:

  • A strong buy rating from analysts,
  • Positive earnings and revenue YOY growth, and
  • Potential upsides exceeding 40%.

I sorted the list based on the highest to lowest potential upside based on analysts’ high target prices. So, let’s start with:

Super Micro Computer (SMCI)

Source: rafapress / Shutterstock.com

The market has high hopes for Super Micro Computer (NASDAQ:SMCI) as the adoption of AI continues. As a long-standing partner of Nvidia and specializing in AI servers, the company is standing at the forefront of the current AI boom alongside other tech giants.

SMCI recently announced it will add three new manufacturing facilities in Silicon Valley, anticipating further growth in the sector.

For FY’23, the company reported impressive revenue growth, up 37% to $7.12 billion against FY’22’s $5.20 billion. Meanwhile, net income per diluted share doubled from $5.32 to $11.43. This massive improvement “validates our global leadership position in AI-accelerated compute platforms,” says Charles Liang, President and CEO. The FY’24 report will soon be released as investors eagerly anticipate the results.

SMCI stock has a strong buy rating based on 8 analysts. Its high target price of $1,500 represents a massive 77% potential upside. Truly, SMCI is well-positioned to become one of the fastest-growing artificial intelligence stocks today.

QuickLogic Corporation (QUIK)

Source: Shutterstock

One of the leading providers of open reconfigurable computing solutions, QuickLogic Corporation (NASDAQ:QUIK) specializes in fabless semiconductor manufacturing for ultra-low powered semiconductors.

The company has continued to announce major catalysts that help drive positive sentiments from investors, including its partnership with Zero-Error Systems America for space applications, the Aurora 2.6 eFPGA User Tool Suite release, and a six-figure license agreement for subsidiary SensiML.

QuickLogic reported 31% YOY revenue growth in FY’23. The report also outlined 146% total revenue growth across three years from 2020, when it launched its IP business model. While the year ended in a 2-cent loss, it is still a vast improvement from FY’22’s 34-cent loss per share.

The company’s upward trajectory spells potential reversal in the future, a sentiment expressed by CEO Brian Faith. “With the expansion of our customer base and end markets that we anticipate this year,” Faith says, “we expect our growth trend and profitability to continue in 2024 and beyond.”

This optimism further cements the strong buy rating from analysts, which outlines a 56% potential upside based on the current high target price of $16.

Lattice Semiconductor Corporation (LSCC)

Source: Shutterstock

Being at the forefront of low-power FPGA (field programmable gate array) solutions development has made Lattice Semiconductor Corporation (NASDAQ:LSCC) the leader in the field.

The company has focused on solutions that cater to “big data,” like cloud computing edge and artificial intelligence. Recently, it announced new products that cater to the evolving security needs of the market, like the MachXO5D™-NX secure control FPGAs. In addition, Lattice has also shared its 3D sensor fusion reference design, which aims to help develop autonomous applications.

Lattice Semiconductor’s revenue was up an impressive 11.6% in FY’23 despite “near-term cyclical headwinds,” said CEO and President Jim Anderson. Meanwhile, net income increased by 44.8% YOY.

This excellent performance mirrors Wall Street’s strong buy rating for LSCC stock. Analysts give it a high target price of $88, representing a 43% potential upside.

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.

Articles You May Like

The 3 Most Undervalued Warren Buffett Stocks to Buy in July 2024
3 Stocks to Avoid Like the Plague in 2024
3 Gaming Stocks to Sell in July Before They Crash & Burn
3 Solar Stocks Best Positioned to Benefit From AI 
3 Next-Gen Drug Stocks Exploring Psychedelic Frontiers