Artificial Intelligence (AI) is a booming industry that is transforming various sectors like autonomous driving and image recognition. Companies that develop AI products and services are likely to experience significant growth. Many AI stocks have seen impressive appreciation lately because chatbots have brought more attention to this space. However, Nvidia is usually viewed as the best pure-play AI stock in the market. The company is the leader in advanced computing Graphics Processing Units (GPUs), which power almost every application that requires significant computing power.
Despite Nvidia’s dominance, there are several untapped AI stocks outside of Nvidia that are worth considering. Here are three excellent options:
Microsoft has been a top performer in the AI space for years. The company’s Azure cloud platform is a leader in AI-as-a-service offerings, and they have invested heavily in the research and development of machine learning capabilities. The company’s advanced AI capabilities may not be the obvious choice in this industry, but it is among the best in the sector. Microsoft plans to integrate Bing into ChatGPT, expanding its user base through the platform’s 100 million active users. This establishes a massive opportunity for the company to disrupt the industry as traditional search engines often fail to provide satisfactory answers.
Investing in high-growth markets is a lucrative strategy, and Advanced Micro Devices (AMD) is a notable stock, especially with its chip business that serves major tech players. AMD’s hardware powers diverse devices such as game consoles, laptops, cloud services, custom-built PCs, and AI programs. With its broad market presence and high-growth projections, AMD has enormous potential for investors. Its recent market performance and diverse customer base suggest a company that is well-positioned for future success.
Baidu continues to lead the AI industry in China. The company made significant strides in the AI space and recently demonstrated the capabilities of its chatbot by simplifying financial statements and generating PowerPoint presentations through voice commands. Although Baidu’s early chatbot releases disappointed investors and impacted its stock performance, it has the potential to make a strong comeback. Baidu’s Ernie Bot A.I. platform has garnered substantial interest, attracting over 120,000 companies in China for testing. Consequently, BIDU stock has experienced a significant surge over the past six months, with a 4% increase projected in 2023.
Investors looking for AI stocks that can deliver significant returns should consider some of the untapped AI stocks in the market. Despite Nvidia’s dominance in the industry, options such as Microsoft, AMD, and Baidu show tremendous potential for growth. These companies are investing heavily in research and development to remain competitive and lead the technology revolution driving the future of various sectors.
