Three Best Artificial Intelligence Stocks to Buy

Three best artificial intelligence stocks to buy for profiting from a huge technological advance offer investors a strong chance to pursue profits.

Artificial intelligence (A.I.) has emerged as a lucrative opportunity with today’s increasingly technological society. A.I. has integrated itself into homes, workplaces, automobiles, cloud applications and computer chips.

A.I. is predicted to have a market size of $1,591 billion dollars by 2030, compared to 2022’s market size of $87 billion, according to Precedence Research. This correlates to a forecasted compound annual growth rate (CAGR) of 38.1% between 2022 and 2030.

As the demand for A.I. technology increases, it is imperative for investors to look at some of the best A.I. stocks to buy in 2023.

Three Best Artificial Intelligence Stocks to Buy Feature NVIDIA,

1. NVIDIA Corporation (NASDAQ:NVDA)

The NVIDIA Corporation, of Santa Clara, California, is a large manufacturer of graphic processing units (GPUs) and is an industry giant in computer technology infrastructure. These GPUs have various applications from personal computers to general machine learning. NVIDIA has heavily invested in artificial intelligence by integrating it into parts of its commercial hardware.

NVIDIA recently created its DRIVE™ PX2, an A.I. computing platform that helps the production of cars, delivering energy efficiency and autonomous driving. NVIDIA also is just scratching the surface of A.I. ‘s potential productivity, but is a prospective investment for those looking for heavier returns.

In addition, NVIDIA’s total revenue increased 62.5% in 2022 and looks to boost research and development (R&D) spending specifically towards A.I. integration in the near future. The company also has a healthy current ratio (Current Assets/Current Liabilities) of 3.52, meaning it has a relatively strong hold on its current debt and does not appear likely to incur setbacks due to liquidity problems.

Chart courtesy of www.stockcharts.com

Three Best Artificial Intelligence Stocks to Buy Include C3.ai

2. C3.AI Incorporated (NYSE: AI)

C3.AI Inc., of Redwood City, California, is a relatively new entrant in the A.I. industry. Founded in 2009, C3.AI creates pre-built A.I. platforms that are designed to carry-out specific tasks. These tasks vary from anti-money laundering to energy efficiency to digital customer engagement.

Compared to other companies in the sector, C3.AI has been known to provide the most cost-effective and efficient solutions to customers. This positions C3.AI well with the increased demand for A.I. applications. C3.AI stock has risen 99.37% from March 2022 to March 2023 and has recorded increasing revenue in the past three fiscal years.

While C3.AI is one of the companies leading the charge on A.I., it comes with risk. Last year, C3.AI increased R&D expenses by almost 300% to $150 million. This could cause some instability in the future revenues depending on the success of its new products. While C3.AI is well positioned to grow amid increased demand for A.I., its volatility in the coming years will need to be closely watched by investors.

Chart courtesy of www.stockcharts.com

Three Best Artificial Intelligence Stocks to Buy Include TSM

3. Taiwan Semiconductor Manufacturing Company (TSM: NYSE)

The Taiwan Semiconductor Manufacturing Company (TSM), of Hsinchu, Taiwan, is the world’s largest semiconductor foundry. TSM has strategically positioned itself at the center of A.I. chip production in the coming years. TSM holds a strong advantage in the A.I. market for its production of essential computer chips. TSM maintains a market capitalization of more than $434.65 billion and recorded 2022 revenue of $76 billion, a 32% increase from 2021.

The global demand for semiconductors is steadily increasing. Key reasons for this increase are the importance of semiconductors in technologies like 5G and cloud computing software. TSM will continue to pursue heightened profits as it offers investors ways to tap into A.I. opportunities.

Chart courtesy of www.stockcharts.com

The A.I. Industry is expected to grow dramatically in the years ahead.  These three best A.I. stocks to buy have strong advantages to become important parts of that future. NVIDIA, C3.ai, and TSM are positioned well for investors to seek strong potential returns.

Jordan Ellis is an editorial intern for www.stockinvestor.com