Artificial Intelligence is far more than a fleeting trend. And savvy investors really shouldn’t miss out. At the moment, we are on the brink of an AI revolution, and it’s quickly redefining our world and powering an array of solutions from language processing to visual perception, reasoning, planning, and whatnot. This dynamic transformation reveals an intriguing horizon, swarming with the best AI stocks for millionaires.
A multitude of new AI technologies are entering the market, suggesting that we’re merely looking at the tip of the iceberg. As AI matures, promising opportunities present themselves to investors with a keen eye on the future. It’s the perfect storm for those considering investing in AI stocks. Given this backdrop, focusing on the top AI stocks to buy is imperative. These high-potential contenders hold the power to drive exceptional long-term growth in your portfolio, creating millionaires along the way.
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Renowned tech giant Microsoft (NASDAQ:MSFT) is riding the AI wave to remarkable new heights. Its collaboration with OpenAI has generated a significant buzz this year, making it one of the most enticing AI stocks to buy.
Microsoft’s affiliation with OpenAI and its groundbreaking AI technology is a major long-term catalyst for the business. Since initiating its investment in OpenAI in 2019, Microsoft has been effectively developing innovative AI tools such as ChatGPT and DALL-E 2. These tools effectively transform the AI landscape, helping Microsoft amplify its services, particularly in its Azure division.
Additionally, Microsoft has been utilizing generative AI to enhance its products and services. Bing, for instance, is making significant strides in challenging Google’s market dominance. And with its recent unveiling of Dynamics 365 Copilot, a pioneering endeavor that brings “next-generation AI to every line of business.”
Alphabet (GOOG, GOOGL)
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In an intriguing twist, Elon Musk lauded Alphabet’s AI technology ability in a recent CNBC interview, suggesting it could go head-to-head with OpenAI’s renowned ChatGPT. Yet, amidst all the buzz around ChatGPT, Google continues its unchallenged reign in the search engine domain, dominating more than 93% of all search queries. While Bing is making strides, Google’s formidable market share remains unscathed.
Furthermore, Google’s financial performance continues to impress, with its first-quarter earnings surpassing analyst expectations. Revenue forecasts were comfortably ahead of estimates by $982 million, reinforcing the case for considering Alphabet as a leading investment choice for those riding the AI wave.
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Baidu (NASDAQ:BIDU) is a leading investment prospect worth considering, asserting its dominance for those eyeing AI. The company has proven to be a beacon of innovation; Baidu’s value lies in its forays into AI-infused search platforms and autonomous driving units.
Earlier this year, Baidu jumped onto the AI stage with its powerful ERNIE Bot, a marvel of a chatbot that effectively promises to shake up human-machine interactions. ERNIE’s knowledge-enhanced large language model excels at understanding human intentions and delivering precise, accurate, and fluent responses that eerily mirror human interaction.
Further sweetening the deal, Baidu’s cloud business has turned a corner, achieving profitability for the first time in eight years, all set for an ERNIE Bot-powered transformation. With Baidu asserting ERNIE’s infallibility, investors would want to keep their eyes on this rising AI star.
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Positioning itself as a robust contender in the AI field, C3.ai (NYSE:AI) stands out with its distinctive blend of innovation and agility. The firm operates in a highly competitive software-as-a-service (SaaS) market, with its AI-driven enterprise applications presenting an exciting long-term opportunity.
The company is distinguished by its robust business strategy, aiming to harness the power of AI’s upward trajectory effectively. At the heart of the firm’s robust long-term outlook is a bold estimation from the firm’s CEO of an impending $600 billion AI software market. Furthermore, the company’s growing appeal and strategic business model signal its readiness to capitalize on the AI boom effectively. However, investors should be mindful of the potential volatility that naturally accompanies investments in a fast-evolving sector.
Upstart Holdings (UPST)
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Upstart Holdings (NASDAQ:UPST) has carved a niche during the pandemic with its innovative AI lending platform. However, the current economic climate, marked by rising interest rates, has effectively cast a shadow over its momentum. Yet, with a business landscape as dynamic as ever, the question remains, when will banks unleash their lending potential again.
Upstart revenue and earnings beats on both lines despite facing massive headwinds at this time. Following the release of these results, the company’s shares jumped by an astonishing 35% in one day, underpinned by an upbeat Q2 revenue forecast of $135 million and break-even EBITDA predictions ahead of analyst expectations.
Upstart’s optimistic outlook signals a marked improvement in its current valuation. With UPST stock trading under four times forward sales, it is likely to snap back and blow past 52-week high prices.
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Conversational AI is making waves, and SoundHound (NASDAQ:SOUN) is arguably the best wager on this burgeoning market. SoundHound AI is banking on the promise of conversing and comprehending like a human, effectively revolutionizing the way we interact with technology. Hence, it’s effectively bridging the gulf between human conversation and machine comprehension.
Furthermore, the firm is effectively casting a wider net with strategic partnerships in the automotive industry. The firm believes that 90% of new cars will have voice assistants, and its collaboration with customer engagement platform, Airmeez brings us one step closer to that reality. Sure, SoundHound, a relative newcomer since its 2022 SPAC debut, is still in the red. Yet, with over $30 million in revenue already, and the prospect of turning a profit by 2025, this emerging AI star is one to watch.
Intuit (NASDAQ:INTU) is known for its popular tax preparation and financial management software that is used for effective decision-making, compliance rules coding, and expanding user-product interaction. It aims to deliver prosperity and improved outcomes to its customer base of over 100 million through AI-based insights and expert platforms.
Intuit has successfully reimagined its role in the ever-growing gig economy. Moreover, it’s making a splash in the generative AI sphere. It won’t be long before it adds generative AI features to its robust software stack, potentially becoming a game-changer for its users. Over the years, it has amassed a massive data bank, which positions it for robust long-term AI gains.
Over a five-year period, revenue growth for the firm has averaged a remarkable 20.4%, while its EBITDA has grown by more than 15.6%. Year-over-year numbers remain as impressive as ever, which paints a promising long-term picture for the firm.
On the publication date, Muslim Farooque did not have (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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.