The artificial intelligence (AI) boom isn’t slowing. Instead, more growth is ahead, as AI begins to impact just about every business and person in existence. Better, the AI market is valued at about $100 billion today and could grow to $2 trillion by 2030, according to Next Move Strategy Consulting. All creating massive opportunities for top AI stocks to buy.
No wonder companies are jumping on for a piece of the market. Even Apple (NASDAQ:AAPL) is winding down its electric vehicle efforts to focus more on generative AI, which could be worth about $1.3 trillion by 2032, says Bloomberg Intelligence. Also, as noted by CNBC, CEO Tim Cook sees “incredible breakthrough potential for generative AI, which is why we’re currently investing significantly in this area.”
While Apple hasn’t announced any specifics about its AI efforts, it did say it’ll release information later this year. Along with Apple, though, here are some other AI stocks to buy hand over fist today.
SoundHound AI (SOUN)
One of the top AI stocks to buy is voice AI and speech recognition stock, SoundHound AI (NASDAQ:SOUN).
The company is a leader in conversational intelligence. Granted, that may not sound exciting but consider the company is working to integrate voice assistants into vehicles and restaurants, both of which could bring in more than $500 million a year in revenue for the company.
Also, over the last few days, SOUN stock raced from about $2 per share to a high of $7.91 per share. And while it’s seeing some profit-taking at the moment, there’s still substantial opportunity ahead. All with Nvidia (NASDAQ:NVDA) buying 1.73 million shares of the sound specialist.
Plus, as noted by Wedbush analyst Dan Ives, “We view this as a positive indicator for the company as this investment now further solidifies the company’s brand within the AI Revolution with the Godfather of AI Jensen [Huang] and NVDA now backing SOUN and we believe this could be the start of a broader investment into the company down the line which is a clear tailwind,” as quoted by Seeking Alpha.
Nerdy (NRDY)
Using AI to deliver online learning, Nerdy (NYSE:NRDY) connects learners of all ages to experts, delivering superior value on both sides of the network.
Nerdy “provides learning experiences across 3,000+ subjects and multiple formats—including Learning Memberships, one-on-one instruction, small group classes, large format group classes, and adaptive self-study,” as noted on its Varsity Tutors site.
Most recently, NRDY stock slipped on earnings. However, I’d use the weakness as an opportunity to accumulate as earnings continue to impress. Plus, analysts at Needham just reiterated a buy rating on the NRDY stock, with a price target of $4 a share.
In its fourth quarter, Nerdy revenues were up 32% year over year to $55.1 million from $41.8 million. It posted a record quarterly gross profit of $39.2 million a 33% increase year over year. Gross margins were also higher at 71.3% from 70.5% year over year.
Nerdy’s guidance expects first-quarter revenues to be in the range of $51 million to $53 million. For the full year, it anticipates a revenue range of $232 million to $246 million, or 24% growth at the midpoint.
BigBear.ai Holdings (BBAI)
The last time I mentioned BigBear.ai Holdings (NYSE:BBAI), it traded at $2 per share on Feb. 15. At the time I noted, “Analysts at Cantor Fitzgerald just initiated an overweight rating on the stock, with a $3 price target. Plus, in its third quarter, the company posted its first quarter of positive net income, positive adjusted EBITDA, and positive cash flows from operations.”
Shortly after, BigBear would hit a high of $3.75. While it’s seeing some profit-taking after the latest run, I’d use any near-term weakness as an opportunity to buy. Not only is BBAI getting caught up in the massive AI boom, it is starting to gain big momentum ahead of earnings on Mar. 7.
BBAI stock also holds untapped potential some investors are missing out on, says Investorplace contributor Chris MacDonald. “BigBear’s key value is its core business model which focuses on three important markets: cybersecurity and autonomous systems, along with logistics and supply chains. The company also has a large customer base, composed of both government and commercial sectors.”
On the date of publication, Ian Cooper 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.
