May is here, and with it is one of the best times to invest in Artificial Intelligence (AI) stocks. AI technology has been growing rapidly, set to be worth around $1 trillion in the next five years. Making research-based investment decisions for AI stocks can be a smart move for those looking to diversify their portfolio.
Thus, Finbold has put together a list of the top 4 AI stocks to buy in May based on the companies’ financial performance, growth potential, and overall market outlook.
One of these stocks is Google (NASDAQ: GOOG). It is by far the most sought-after of all the stocks, with its price having risen by 2% on Monday after reports revealed the company is set to release new major updates to its generative AI at the conference on May 10. At the time of writing, GOOG was trading at $108.24, registering a 20%+ growth since the start of 2021. With 40 financial analysts recommending a strong buy, and 7 recommending a buy, Google is lucrative stock to add to the portfolio.
The second best AI stock to buy in May is Microsoft (NASDAQ: MSFT), the second largest company in the world according to market cap. It has doubled down on its AI ambitions and has invested $10 billion in ChatGPT. MSFT is also trading very well, currently at $308.65, showing over 27% growth since the beginning of the year.
IBM (NYSE: IBM) is the third stock in the list. Unfortunately, it has had a disappointing 2021 and has dropped by 12% since the start of the year. However, it is still a great stock to invest in, with the company having strong AI relevancies. It is currently trading at $123.40 with a support level of $123.28 and resistance in the range between $124.56 and $128.51.
The last in this list of top 4 AI stocks is Amazon (NASDAQ: AMZN). This e-commerce giant has invested heavily in AI and voice-activated Alexa technologies, and Amazon Go automatic grocery stores. AMZN is currently trading at $105.83 and it has shot up by 23% since the start of this year. The PandaForecast price prediction model gave it an estimated weighted target price of $106.80 for the May 2021.
Each of these four companies are powerhouses in their own rights, with Google being a tech giant, Microsoft known for its extensive tech offerings, IBM having a huge presence in this industry, and Amazon being the leader when it comes to e-commerce services. When investing in any of these AI stocks, investors should do their research and make sure they fully understand their risk tolerance before making any decisions.
