The most exciting rally in the tech sector since 2021 has undeniably been in artificial intelligence (AI). Companies that produce or use AI for their operations have seen substantial appreciation in market capitalization. Though an indirect AI play, Nvidia (NASDAQ:NVDA) has seen its market cap rise by $730 billion from its trough in 2022. This is not unusual – Other artificial intelligence stocks have soared similarly. The question is, can this AI rally continue? Likely not. Expecting Nvidia to have a multi-trillion market capitalization is unrealistic, and many other AI stocks are priced for perfection.
However, “backdoor” AI bets still exist, and some can deliver multibagger gains and benefit greatly from AI’s expansion. Utilizing AI itself for its abundance of data on the workings of specific companies’ business model is an excellent approach to uncover these opportunities.
I’ve asked Bard for such artificial intelligence stocks, as it has a larger data set and outperforms its peers regarding stock picking. By researching their business models, financials and future projections, it is possible to handpick rock-solid bets. Let’s start!
Me: “Hi Bard, I am writing an article about “3 Artificial Intelligence Stocks That AI Predicts Will Deliver Triple-Digit Returns in 2023″ Can you give me some picks?”
MicroVision (MVIS)
Bard: “MicroVision (NASDAQ:MVIS) is a semiconductor company that designs and manufactures laser beam scanning (LBS) technology for use in augmented reality (AR) and virtual reality (VR) devices. The company’s technology is used in a variety of applications, including AR glasses, VR headsets and automotive HUDs.”
MicroVision is a great start to this list. While other AI stocks are still elevated, MVIS is now at a compelling price range after its 41% June decline.
As Bard explained, this company has its hands in multiple up-and-coming sectors, such as AR and VR. Even before the development of the metaverse, it showcased the world’s lightest and smallest module for smart glasses.
With negligible revenue, it is currently a very speculative play. However, analysts forecast $408 million revenue by 2025, making the risk worthwhile for the substantial growth expected.
Cerence (CRNC)
Bard: “Cerence (NASDAQ:CRNC) is a leading provider of voice and AI solutions for automotive, consumer electronics and enterprise customers. The company’s solutions are used in a variety of applications, including voice-activated assistants, navigation systems and customer service chatbots.”
Another under-the-radar AI stock, Cerence is having trouble combating headwinds. With a shrinking topline, it burned $26 million last quarter while only having $107 million in cash. However, despite the near-term outlook, it is a really promising pick in the long run.
Cerence’s sales are expected to grow 31% next year, with a projected nine fold EPS increase in the next two years. I expect much more than triple-digit gains here if these expectations are met.
Intel (INTC)
Bard: “Intel (NASDAQ:INTC) is a semiconductor company that designs and manufactures microprocessors and other computer components. The company’s chips are used in a variety of applications, including AI, gaming and data centers.”
INTC is well-positioned to deliver triple-digit gains, despite the recent appreciation. Although Advanced Micro Devices (NASDAQ:AMD) has taken over the key CPU segment, the company is poised to make a strong comeback after losing much of its shine.
No longer resting on its laurels, Intel is releasing many of its products ahead of schedule with much better pricing. Some issues, such as with GPU drivers, may take more time to fix. However, I believe the company is starting to bounce back relatively fast.
Intel’s expertise in the chip market, combined with its shift to accommodate the AI boom, make this company a serious long-term play.
On the date of publication, Omor Ibne Ehsan 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.
