As we head into the future, the adoption of AI technology has skyrocketed, which has had a direct impact on AI stocks. Generative AI, such as ChatGPT, garnered attention early in 2023, which led to an AI trend, resulting in a surge of AI stocks. However, AI adoption has been on the rise for some time now, and it’s affecting companies across every sector.
Presently, AI adoption rates vary from industry to industry, but the overall growth rate for 2022 was likely in the high teens. As rates rise, investors are actively exploring AI opportunities they initially overlooked, leading to opportunities across all sectors.
Semiconductor stocks like Marvell Technology (NASDAQ:MRVL) are at the forefront of AI promise. Nvidia (NASDAQ:NVDA) has garnered the most attention and investment, but Marvell Technology is one of several chipmakers confident that AI will push its business. The company’s management projects that AI revenue will double in 2023, despite the company not receiving much media attention. MRVL hasn’t yet reached its target price, which indicates that there may be more room for growth.
Another chipmaker benefiting from the AI wave is Advanced Micro Devices (NASDAQ:AMD). The company had a rough May when it reported negative net income and weak Q2 guidance. However, investors are moving into AMD on the back of the company’s expected AI push. Investors are optimistic that AMD has the potential to provide news that will propel the stock higher.
AI has fundamentally changed the valuations of companies, as seen in the case of Palantir (NYSE:PLTR). The company’s share price has surged past Wall Street estimates, and the company has reported positive GAAP net income for the past two quarters. More importantly, the company has carved out a significant position as an AI software provider to the US military.
Cerence (NASDAQ:CRNC) is an AI stock that operates in a sector with significant AI-related opportunities. The company engineers automotive cognitive assistance solutions that connect drivers and passengers in the digital world. With consumers demanding greater connectivity, Cerence can utilize AI to meet their demands. Its conversational AI products provide comfort, safety, and information to drivers and passengers. Its voice-powered AI platform is available for automobiles and two-wheeled vehicles, making it an excellent opportunity in spaces like urban delivery.
Snowflake’s (NYSE:SNOW) fortunes fell with the tech collapse of 2022; however, AI means that Snowflake is again a stock to watch. Snowflake’s cloud is built on top of the three dominant cloud infrastructures: AWS, Azure, and Google Cloud, and the software leverages these networks. The company is heavily focused on cloud AI, making it a unique opportunity during an expected surge of market investment.
GitLab (NASDAQ:GTLB) is another stock that has caught the attention of investors. It recently added ten AI features to its platform, and its CEO believes that AI will help it to make software faster than ever before. If GitLab can harness these productivity gains before other software makers do, it has the potential to surge dramatically.
Finally, Berkshire Grey (NASDAQ:BGRY), an AI enterprise robotics firm, trades for less than $1.50 and provides AI-enabled robotics for ecommerce orders. Berkshire Grey is operating in a sector that expects to grow at roughly 13% annually through 2030, and companies such as Amazon are looking to reduce labor costs, which gives Berkshire Grey a substantial field in which to play.
