AI stocks are rising in popularity, and for good reason. By leveraging the power of artificial intelligence, companies are unlocking new opportunities for growth and innovation. The potential for growth in the AI market is enormous, with some estimates placing potential global market value at more than US$1.8 trillion. Investing in AI stocks is a great way to put your money to work in this rapidly-growing market segment.
Two such stocks to consider are CGI Inc. (TSX:GIB.A) and CrowdStrike Holdings (NASDAQ:CRWD). CGI is a Montreal-headquartered IT consulting firm that is well-positioned in the fragmented industry. Its organic and acquisition-driven growth has put it in a strong position to capitalize on market expansion and its first quarter for fiscal 2022 saw it deliver 11% year-over-year revenue growth. It also has a substantial US$25 billion backlog. As of this writing, CGI stock trades for $126.74 per share.
CrowdStrike is an Austin, Texas-based global cybersecurity firm. Its Falcon security platform leverages AI tech to identify potential threats and its machine-learning enabled features are getting smarter over time. It boasts an impressive retention rate of 98% and its customers have been increasing spending with the company at a rate of 20% annually since 2018. It has a total of more than $2.7 billion in cash, cash equivalents, and short-term investments, which is bolstered by a strong net cash position of nearly $2 billion. As of this writing, CRWD stock trades for US$134.54 per share.
Businessman holding AI cloud in this article refers to investors looking to take advantage of the immense potential in the AI space by investing in AI stocks. The article discusses two specific AI stocks, CGI Inc. and CrowdStrike Holdings, to provide more concrete investment options. CGI Inc. is well-positioned in the fragmented IT industry and it has a substantial US$25 billion backlog. CrowdStrike is a prominent player in the AI space, offering a Falcon security platform that utilizes AI technology for threat identification. The business has a strong retention rate of 98% and is in a strong financial position with a net cash of nearly $2 billion. Investors looking to take advantage of the potential AI space should keep these two stocks in mind.
