Artificial Intelligence is everywhere and has become a hot trend. Electric vehicles, cloud computing, automated robots, or machine learning, you name it and AI is present there. Whether it is the impact on employment and productivity or the potential to shape the future, AI is here to stay.
As per Grandview Research, the global artificial intelligence market size is projected to reach $1,812 billion by 2030, achieving a compounded annual growth rate (CAGR) of 37%. This means now is the ideal time to consider AI stocks to buy.
AI plays a huge role in the global economy and has already emerged as a top investment trend. Market leader Nvidia (NASDAQ:NVDA) has shown how big the industry can be and it is already raking in big numbers due to the impact of AI.
While Nvidia has already entered the trillion-dollar industry, several other stocks are worth considering and could skyrocket before 2025. If you are considering investing in Artificial Intelligence and want to achieve a high return from AI stocks, here are the three top picks.
Autodesk (ADSK)
A top software design provider, Autodesk (NASDAQ:ADSK) is one of the high-growth AI stocks to buy. It has been heavily investing in generative AI tools which will give it a boost when it comes to the AI industry. The company builds software for engineers and architects. It has an architectural design product known as Revit as well as a manufacturing platform known as Fusion 360.
These two are the main products of the company and using generative AI for the same will pay off in the long-term. Through these tools, engineers can set a range of parameters and have the software run simulations. It can save a lot of time and money. Its products can build structures and 3D animations which will help meet the changing demands of the industry.
ADSK stock is trading in the low $200s range and is up over 10% year to date. The stock was trading as high as $329 in November 2021 but has seen high volatility in the past year. However, the long-term growth prospects of the company look promising. It has a product that caters to a massive industry and this will help generate steady revenue throughout this decade.
By creating a product that meets the needs of this industry, Autodesk has ensured a steady revenue through regular paying customers. The management expects revenue to grow at a rate of 7% to 9% and achieve annual revenue of $5 billion this year.
As a leader in the industry and with a product that shines in the market, the company can also raise prices in the coming years. ADSK stock is a strong buy as it could skyrocket in the coming years.
Oracle (ORCL)
Oracle (NYSE:ORCL) is one of the top skyrocketing AI stocks to consider. The company has been a leader for many years and several businesses relied on its software to handle their business data. The business has continued to deliver for many years and I think it is well prepared for the AI boom.
Oracle already has an advantage with its Oracle Cloud Infrastructure since the company has managed to meet the needs of many businesses without them having to spend a huge amount on building infrastructure hardware. Oracle already has multiple deals with Nvidia and has a contract to offer thousands of chips for AI workloads. The deal shows the potential and ability of Oracle to perform in a competitive industry.
In the recent financial results, the company mentioned that over 30 AI development companies had signed a contract to buy $2 billion worth of capacity in its Gen2Cloud. It has become the number one choice for several business enterprises that are developing generative AI applications.
The company has been in the business for over 50 years and it has had a solid run. The stock has been trading at $114 today and is up 36% year to date. It also enjoys a dividend yield of 1.40%.
Oracle has been using AI for years now and it has already contributed to its success in the past. It has the right products to attract businesses that can ensure steady revenue over the years. My InvestorPlace colleague David Moadel also considers Oracle a high-confidence stock pick. Holding ORCL stock could be a solid chance to double your money in the coming years.
Advanced Micro Devices (AMD)
A long-time competitor of Nvidia, Advanced Micro Devices (NASDAQ:AMD) is not the one to let a billion-dollar opportunity pass. The company is set to gain significantly from its partnership with Microsoft (NASDAQ:MSFT). It offers a wide range of chips to one of the biggest names in the tech space. Additionally, AMD recently revealed the MI300X, an advanced graphics processing unit (GPU) which has the potential to stand head-to-head with Nvidia.
Amazon (NASDAQ:AMZN) is already looking at its potential and a collaboration could mean solid revenue for AMD. I also believe that AMD has the potential to revolutionize the gaming industry with its chips. It already holds a strong gaming market and with the introduction of AI, it could enhance the users’ gaming experience. AMD remains one of the high-return AI stocks to invest in.
AMD stock is trading at $113 today and is up 76% year to date. The stock has gone from $64 in January to $113 today and it still has the potential to double this year. If you missed the chance to buy Nvidia, you still have a chance to own AMD before it skyrockets.
The company has already proved its strength with its revenue numbers. It reported revenue of $5.4 billion, and data center revenue stood at $1.3 billion in the recent quarter. It could report an even better quarter this earnings season. AMD has the leadership, liquidity, and potential to become a strong player in the industry over the next two years.
On the date of publication, Vandita Jadeja did not hold (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.
