AI stocks to buy are garnering more recognition with every passing day. The range of possibilities that AI has to offer is quite immense, especially in industries like finance, healthcare, and other sectors. Precedence Research recently estimated that AI is ready to experience tremendous growth, predicting that the Artificial Intelligence market will reach an all-time high of $1,591.03 billion by 2030, with a CAGR of 38.1% from 2022 to 2030.
Given its futuristic potential, investors need to be vigilant for opportunities to get returns. This article will explore three AI stocks to buy that have a promising outlook.
Microsoft Corporation (NASDAQ:MSFT)
Microsoft Corporation is a global leader in software products and services. Most recently, Microsoft has doubled down on the potential of the AI industry, dedicating $10 billion for a multi-year investment to OpenAI— the team behind the AI-driven tool called ChatGPT. This tool is revolutionizing the way both search engines and enterprise use AI to get customer support, process data, and improve decision-making.
Throughout the pandemic, Microsoft has consistently remained a reliable performer among tech companies, despite experiencing some structural changes, including over 100,000 layoffs in the industry. Analysts such as Kirk Materne, an analyst at Evercore ISI, anticipate that the Redmond giant has the potential to bring in significant returns, as they’ve predicted a dramatic rise in MSFT stock.
Taiwan Semiconductor Manufacturing Co. (NYSE:TSM)
Taiwan Semiconductor Manufacturing Co. is a highly sought-after semiconductor fabrication and foundry known for their cutting-edge process technology. The company has enabled the design of more advanced chips through their advanced packaging services, leading the way of AI-driven enterprise use cases.
TSM stock is down 14% in the past 12 months, likely attributed to the slowdown of main customer’s post-pandemic headwinds, as well as AMD’s, Nvidia’s, and Qualcomm’s supply chain and 5G initiatives slowing down. Nevertheless, TSM is projected to increase revenue in 2023 through the production of advanced 5nm and 3nm nodes.
Arista Networks (NYSE:ANET)
Arista Networks is a cloud networking solution provider with the mission of equipping enterprise data centers, cloud service providers, and other internet companies with advanced capabilities. Arista’s switches have been optimized for AI and deep learning workloads, providing the necessary scalability for the most intricate applications.
Their financial year 2022 reports exceeded growth, revenue, and profitability forecasts, boasting an impressive 48.6% growth in revenue from the previous year. For investors looking to invest in AI-driven companies, Arista Networks is an excellent option.
Founder Jayshree Ullal has been the President and CEO of Arista since 2008. Ullal has been praised for her business acumen, with the nomination of CNN’s 2011 Businessperson of the Year award under her belt. Although Arista experienced damaging patent disputes, Ullal’s expertise and courage allowed Arista to prevail, driving the company towards a fruitful future.
With the world bracing itself to scale AI advancements in the coming years, investing in AI stocks is a brilliant way to diversify your portfolio. Knowing which stocks to buy is a tricky question, as the right AI stock for one person may not be the right one for another. Still, these three AI stocks to buy represent solid models and incredible promise. Microsoft, TSM, and Arista are each promising opportunity in its own right for investors.
