5 Artificial Intelligence (AI) Stocks to Buy Now

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In recent times, the technology sector has experienced significant growth, with artificial intelligence (AI) stocks becoming a top performer. Particularly noteworthy are the AI and generative AI (GenAI) sectors, which have gained global recognition for their extensive applications. However, it’s important to acknowledge that the increasing interest in AI comes with legal concerns and uncertainties that need addressing.

Several major players on the global stage, including the EU and China, have made strides in regulating AI technology. Despite its challenges, this area is now an alluring prospect for investors. According to Statista’s projections, the size of the AI market is projected to hit $50.16 billion by 2024. Furthermore, the market is forecasted to expand at a compound annual growth rate (CAGR) of 28.30% between 2024 and 2030, resulting in a market value of approximately $223.7 billion by 2030.

So, let’s take a look at the five AI stocks that investors are focusing on now.

Nvidia Corporation (NASDAQ: NVDA)

Nvidia is a major tech company based in California, United States, renowned for manufacturing GPUs and spearheading innovations in artificial intelligence (AI). With a market value of approximately $1.9 trillion, Nvidia stands out as the preeminent technology firm.

Since its launch in 2023, the company has experienced a notable growth spurt. This is largely due to its involvement in manufacturing AI chips, which currently enjoy incredibly high demand worldwide. Concurrently, the company’s profits have seen substantial gains during the past few quarters.

Currently, NVIDIA’s P/E ratio stands at 63.82, and its predicted P/E ratio is 37.72. It’s worth mentioning that the NVDA stock has experienced a significant increase of around 60% this year, and over 180% growth in the previous twelve months.

Intel Corporation (NASDAQ: INTC)

Intel, based in Santa Clara, California, is another major technology company that specializes in cloud computing, data centers, the Internet of Things (IoT), and associated services. Notably, Intel has entered the competitive field of Artificial Intelligence (AI) alongside industry leaders. At a recent event on April 9, Intel announced the upcoming release of its new AI chip named Gaudi 3.

Simultaneously, the company with a market value of $144.59 billion boasts a P/E ratio of 87.69, which drops to 57.44 when looking forward one year. It’s worth mentioning that this corporation offers a current dividend yield of 1.43%, with an annualized dividend payment of $0.50.

Despite a significant drop of more than 28% in Intel’s (INTC) stock price this year, it presents an enticing buying chance for astute investors looking to acquire shares at a reduced cost. Now, the financial reports for Intel’s first quarter of fiscal 2024 are anticipated to be released on April 25, following the market closing.

Microsoft Corporation (NASDAQ: MSFT)

Microsoft is among the world’s biggest tech companies with a market value of approximately $2.96 trillion. This Redmond, Washington company is renowned for manufacturing personal computers (PCs) and has a price-to-earnings (P/E) ratio of 36.09. Its projected P/E ratio for the next year was 34.82.

Microsoft has made a significant impact in the tech industry, particularly due to its support for OpenAI, the creators of ChatGPT. With ChatGPT and OpenAI growing in popularity, Microsoft is now at the cutting edge of technology, leading the charge in the field of artificial intelligence.

The large technology company will unveil its Q3 FY24 financial report for the public on Thursday, April 25, following the market’s closing time. Simultaneously, Microsoft’s stock has experienced a significant surge of more than 7% so far this year, and an impressive gain of over 40% during the previous twelve months.

Tesla, Inc. (Nasdaq: TSLA)

Tesla, headed by Elon Musk, has made a significant mark in the AI industry as well, given their reputation for producing electric cars and prioritizing the renewable energy field.

Tesla, just like other advanced car manufacturers, integrates sophisticated AI technologies into its vehicles, leaving investors intrigued. Furthermore, Elon Musk’s unwavering commitment to artificial intelligence progress, as shown through the introduction of xAI, has propelled Tesla to the forefront of this cutting-edge technology in the automotive industry.

Currently, the company’s market value sits at an impressive $468.32 billion, with a P/E ratio of 34.12. Yet, despite these advancements, the electric vehicle manufacturer has experienced a significant decrease in price this year, amounting to approximately 40%.

CrowdStrike Holdings, Inc. (Nasdaq: CRWD)

A Austin-based company called CrowdStrike Holdings provides cybersecurity services including cloud solutions, threat intelligence, and more to its customers. With a market value of $68.36 billion, this business has seen significant growth due to increasing global anxiety about cybersecurity threats.

The price-to-earnings (P/E) ratio for AI stocks is an impressive 785.11, with a forward P/E ratio at 262.59. Over the past year, CRWD stock reached a peak of $365 and a low of $115.67. It has increased by 14% since the beginning of this year, and over the last twelve months, it experienced significant growth of 116%.

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2024-04-22 12:50