For investors interested in artificial intelligence (AI) stocks but looking for affordable options beyond big-name companies like Nvidia, there are still some hidden gems to consider. Three AI stocks worth exploring with a $5,000 investment include Rockwell Automation (NYSE: ROK), Oracle (NYSE: ORCL), and International Business Machines (NYSE: IBM).
Rockwell Automation focuses on industrial automation, offering solutions for various industries to enhance efficiency and consistency. While the stock’s performance has been modest, with a 3% decline in the past year, its projected revenue growth of up to 6.5% for fiscal year 2024 presents growth opportunities. Despite the underwhelming returns, Rockwell Automation’s strong profit margins and reasonable valuation make it an attractive long-term investment option in the AI sector.
Oracle, a prominent player in cloud services and databases, has seen increased demand for its Gen2 AI infrastructure. The company reported a 7.1% year-over-year revenue growth and a 27% profit jump in its latest quarterly results. With AI’s potential for growth and Oracle’s pivotal role in database services, the stock is positioned for further success, especially given its modest valuation compared to industry peers.
Meanwhile, International Business Machines (IBM) offers the watsonx platform for AI model governance, a critical aspect in ensuring data accuracy and safety. Although IBM’s revenue growth has been moderate at 4% year over year, its watsonx solutions have seen a significant uptick in demand. As businesses continue to develop AI models, IBM’s expertise and consulting services place it at the forefront of the industry’s growth, making it an appealing investment choice.
While these three AI stocks may not have garnered as much attention as industry giants, their potential for growth and affordability make them attractive options for investors willing to explore opportunities beyond the mainstream players in the AI sector. As always, it’s essential to perform thorough research and consider all factors before making investment decisions in the dynamic field of artificial intelligence.
