Investors and tech enthusiasts who are looking for the best artificial intelligence (AI) stocks to buy should consider three promising options: C3.ai (NYSE:AI), Palantir (NYSE:PLTR), and Nvidia (NASDAQ:NVDA). These companies have the potential to overtake the current leaders in the AI space, including Google and Microsoft.
C3.ai is a turnkey provider of enterprise AI applications with a rapidly growing list of clients in different industries. Additionally, the company has a partnership with Microsoft, which strengthens its market position, and has seen its stock rise 148% in the year to date as of May 24. Though its stock is currently valued above analyst estimates, this may change after the company reports its earnings on May 31.
Palantir is another stock worth considering after its second consecutive quarter of positive earnings. CEO Alex Karp believes that the company has a significant lead in AI that is yet to be noticed. Palantir is currently offering an AI platform that can be used in real-time battlefield scenarios, and the company has bullish expectations for future profitability.
Finally, Nvidia is becoming a leader in the AI industry thanks to the powerful Graphic Processing Units needed for AI applications. Moreover, rumors of the company’s potential to enter its own generative AI and supercomputing cloud services could fuel its growth even further. While NVDA stock is trading near its 52-week high and has a price-to-earnings (P/E) ratio of over 176x, the company is also a cash generating machine with a free cash flow of at least $3 billion in each of the last four years.
Alex Karp is the CEO of Palantir, a technology company specializing in data analytics and AI. Karp is a co-founder of the company, alongside famed billionaire Peter Thiel. Since its founding in 2003, Palantir has become one of the leading players in the AI industry. Karp is now driving the company’s growth as its CEO and President, overseeing a staff of around 2,000 people. He is an outspoken advocate for the company’s tech initiatives and has been credited for creating the company culture and ideals of Palantir.
