AI stocks have recently seen a surge in popularity as this technology continues to develop and becomes increasingly relevant. Companies that develop AI technologies or use AI to improve their products and services have become attractive investment opportunities for investors who want to tap into the growth potential this sector offers. And many tech giants, including Microsoft(NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), and Amazon (NASDAQ:AMZN) have integrated AI into their products and services, from voice-activated personal assistants to self-driving cars.
In addition to the tech sector, the healthcare industry is also adopting AI. AI is increasingly being used to diagnose diseases and develop treatments, providing new investment opportunities in this growing field.
Investing in AI stocks can be a high-risk, high-reward proposition as the technology is still evolving, and the market can be volatile. That said, while investors seeking less risk can choose to invest in AI ETFs, these three AI stocks are among the best options for long-term investors right now, in my view.
| AI | C3.ai | $21.14 |
| ORCL | Oracle | $89.42 |
| IBM | International Business Machines | $137.35 |
C3.ai (AI)
C3.ai (NYSE:AI) is a leading artificial intelligence software company that provides enterprise AI solutions to various industries. The company’s AI platform is designed to help organizations harness the power of AI to improve operational efficiency and make data-driven decisions. Arguably, C3.ai is the best pure-play AI stock currently available to investors.
In any case, the company’s shares are clearly very volatile. C3.ai went public in December 2020, but like many high-growth stocks, AI stock has been hit hard. Despite this move, the company has received significant recognition, previously named a leader in Gartner’s (NYSE:IT) Magic Quadrant for IoT Platforms.
From a fundamental standpoint, C3.ai looks like a young, emerging company. Revenues reached $62.4 million in the most recent quarter, representing a 7% increase. However, the company also posted a $68.5 million net loss. That’s not conducive to many investors’ ideas of how profitable such companies should be.
That said, perhaps the most encouraging aspect of this company is its subscription growth rate, at 26% year-over-year. This impressive growth suggests that C3.ai’s enterprise partners are finding utility in its products and services.
Oracle (ORCL)
Oracle (NYSE:ORCL) is another large technology stock investing in AI to enhance its products and services. The firm offers a range of AI solutions for various industries, including finance, healthcare, and retail. Oracle’s AI platform, Oracle Cloud AI, provides businesses with tools for data analysis, natural language processing, and machine learning.
Oracle has also developed a suite of AI-powered applications. Oracle’s AI efforts, like many other firms, are aimed at helping businesses harness the power of AI to make data-driven decisions and improve their operations.
Oracle Cloud Infrastructure (OCI) AI Services is a group of services with machine learning models prebuilt into them. Developers then apply these prebuilt AI services to applications and business operations. The result is increased efficiency.
OCI has utility as a digital assistant that can help complete tasks through natural language, language, speech, vision, anomaly detection, and forecasting. Given the high level of interest around this technology, it’s clear Oracle could be an overlooked player in this space.
International Business Machines (IBM)
International Business Machines (NYSE:IBM) is another big technology company with a strong focus on AI. The company has invested in AI for a long time, with solutions across various industries. IBM’s AI platform, Watson, is a cloud-based system that uses machine learning and natural language processing.
IBM also offers a suite of AI-powered applications, such as chatbots, that can automate tasks and improve customer engagement. In general, IBM’s AI efforts aim to help businesses harness the power of AI to improve their operations, make data-driven decisions, and drive innovation.
IBM’s Institute for Business Value undertook a deep dive into 35 Ai implementations globally to understand AI’s value to enterprises. The results suggested that one-quarter of large companies would have moved beyond AI pilots and into operational AI by the end of 2022. Other sources indicated that only 23% of all businesses had incorporated AI into their product and service offerings to date.
With its deep knowledge of the AI space, IBM will continue to serve as a consultant to other businesses. But it is also leveraging its AI platform to sell to those enterprises, and AI could be one of the things that make IBM relevant again, after a long period in the tech background.
On the date of publication, Alex Sirois 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.
