The release of OpenAI’s generative artificial intelligence (AI) chatbot, ChatGPT, has sent shockwaves through the tech world, sparking excitement about the vast potential of this emerging technology. Nvidia (NASDAQ:NVDA) has long been a leader in the AI space, with its chips enabling AI to reach its full potential. As a result, Nvidia’s stock has soared, making it the benchmark for AI stocks. However, with Nvidia’s stock priced for perfection, investors are now on the lookout for the next big AI opportunity. We’ve identified three AI stocks that investing gurus are snapping up, hoping to replicate the success of NVDA.
Microsoft (NASDAQ:MSFT), a major investor in OpenAI, is determined to protect the technology and is rapidly integrating AI into various aspects of its business. With AI embedded in Bing, Azure, Teams, and Microsoft 365 Copilot, Microsoft leverages the power of large language models to provide users with productivity tools. Notable investors like Ron Baron and Joel Greenblatt have recently established new positions in MSFT stock, while Ken Fisher continues to add to his already substantial stake in the company.
Duolingo (NASDAQ:DUOL), the language learning app, has witnessed remarkable growth by enticing users with free access to its courses and then converting them to paid subscribers. With advanced AI tools like ChatGPT-4, Duolingo has seen a surge in subscription bookings and a significant increase in paid subscribers. The stock has been on a tear, with investors like Baron and Greenblatt actively establishing new positions.
Palantir Technologies (NASDAQ:PLTR) is leveraging AI in the field of data analytics with its Artificial Intelligence Platform (AIP). AIP has been instrumental in Palantir’s recent success, helping the company achieve profitability for the first time on a trailing 12-month basis. With its platform opening new possibilities for existing and new customers, Palantir is positioning itself as a top player in the AI software sector. Respected investors, such as Mario Gabelli, are increasing their stakes in Palantir, recognizing its potential as a pure-play AI stock.
As these investing gurus explore AI stocks beyond NVDA, it is important to note that these stocks are not without risk. While some may consider them expensive, they offer significant growth opportunities driven by robust business models and technological advancements. However, investors should exercise caution and thorough analysis before making any investment decisions.
Overall, investors seeking the next NVDA should closely monitor Microsoft, Duolingo, and Palantir Technologies, as these AI stocks have caught the attention of seasoned investing gurus. With AI continuing to transform various industries, these companies might just be the next big winners in the evolving tech landscape.
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