Thanks to generative AI technologies and Nvidia (NASDAQ:NVDA), a chip giant supplying much of the technology required to bring in the AI revolution, AI stocks are a hot commodity this year.

Additionally, the technology behind generative AI continues to improve. It now has models that can make high-quality movies and pictures. Applied AI research company, Runway, for example, is leading the way with new generative video models that Paramount Global (NASDAQ:PARA) and Disney (NYSE:DIS) are considering for film usage.

Moreover, a recent McKinsey survey found that creative AI is being employed in marketing, sales, and IT. Due to this acceptance, human resources costs are down, and supply chain and inventory management revenue is rising.

Growing from 36.6% to 36.8% yearly, the global AI industry is predicted to reach $1.345 trillion to $1.811 trillion by 2030. Certain forecasts see the market reaching $2.740 trillion by 2032, making AI stocks vital to future-proof any portfolio.

North America dominates AI due to major AI stocks based in the region, robust research institutes, and attractive investment circumstances. The region earned 36.8% of global AI revenue in 2022. However, Asia-Pacific will also see significant growth in this area.

Against this backdrop, let’s take a look at three “strong buy” AI stocks with double-digit upsides, all of which hold plenty of firepower to make a run for their 52-week highs.

Snowflake (SNOW)

Snowflake (NYSE:SNOW) shares are down 29% in 2024 as investors worry about falling margins and retention rates, placing it precariously among AI stocks. However, Snowflake can mount a comeback, and the stock shows an average price target of $200.97, indicating a 50% upside potential from its current price of $133.72.

Product innovations and key alliances will drive Snowflake’s growth. Snowflake’s Cortex AI engine now has vector search, massive language models, and other advancements. These solutions let companies automate analytics and properly leverage corporate data to develop AI-powered applications.​

Additionally, Snowflake now works more closely with Microsoft (NASDAQ:MSFT). Low-code/no-code application development, data governance tools, Snowflake’s Data Cloud, and Microsoft’s AI are the partners’ goals.

Microsoft Fabric and Snowflake enable Apache Iceberg and bidirectional data under their partnership. Using this link, customers may work with a single copy of their data in many formats, simplifying data management and platform compatibility.​

Snowflake also announced a deeper NVIDIA partnership at Summit 2024. This agreement allows enterprises to swiftly construct custom AI solutions by integrating NVIDIA’s AI business software into Snowflake’s Cortex AI platform.

To give advanced language models to its Data Cloud, Snowflake partnered with Mistral AI. This agreement allows Snowflake customers to leverage Mistral AI’s robust language models, Mixtral 8x7B and Mistral Large, for AI applications.

ServiceNow (NOW)

Although ServiceNow (NYSE:NOW) is up 11% this year, experts feel there is more space to expand; the average price target is $856.04, which is an 11.5% upside potential from the current price of $767.85.

The first-quarter 2024 financials from ServiceNow were robust. Having $1.82 EPS and $2.60 billion in sales, the company exceeded analysts’ projections. ServiceNow was financially strong shown by its 13.59% return on equity and 20.34% net profit. The most recent financial results from ServiceNow show encouraging trends in the last three quarters, therefore validating its winning run.

ServiceNow unveiled its creative artificial intelligence technologies at Knowledge 2024 as well. These AI-powered improvements seek to automate and simplify several organizational processes in order to raise customer results.

Plus, Clear Skye debuted Identity Governance and Administration 5.1 on ServiceNow. This version streamlines corporate operations and enhances identity security to provide consumers a safer, more consistent experience.

Expanding their strategic alliance to provide consumers greater artificial intelligence freedom and options, ServiceNow and Microsoft are letting ServiceNow’s platform interact with Microsoft’s creative AI products, such as Azure OpenAI.

Additionally, Sonatype and ServiceNow are working to streamline software composition research. This will help companies manage open-source components and alliances, hence enhancing software security.

Baidu (BIDU)

Baidu’s (NASDAQ:BIDU) first-quarter earnings did much to allay investor fears, which is why 13 out of 16 analysts covering the stock rate the Chinese tech giant a “buy.” Consensus points to an average price target of $145.79, translating to a potential 56% upside.

In Q1 2024, core revenue rose 4% to $3.30 billion, while online marketing revenue was up 3% to $2.36 billion. Significant expansion of Baidu’s AI Cloud company has driven a 6% year-over-year rise in non-online marketing income. Generative AI integration into the company’s offerings is also showing promising outcomes.

Baidu anticipates $4.79 billion in revenue and $2.69 EPS next quarter. The 2024 revenue forecast is $20.34 billion, up 8.76% from the previous year.

The business intends to keep investing in artificial intelligence and basic models, including the ERNIE Bot, which is supposed to generate fresh growth engines. Expanding its autonomous driving initiatives is another area of concentration for Baidu, which can help diversify its income sources and improve its market standing. Baidu’s Apollo Go Robotaxi offering has grown very rapidly, thereby raising investor confidence.

Furthermore, Baidu CEO Robin Li underlined the need to maintain a healthy relationship with Chinese authorities, which has allowed the business to negotiate legislative changes and keep its search and news feed products running smoothly.

On the date of publication, Faizan Farooque 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.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.