In recent years, Artificial Intelligence (AI) has been widely accepted as a useful innovation. As technology rapidly evolves, there is a new demand for high-growth AI stocks. Investing in a quality AI stock can make all the difference in the success of a portfolio. Microsoft (MSFT), The Trade Desk (TTD), and Upstart (UPST) are three of the most promising AI stocks to consider this year.
Microsoft (NASDAQ:MSFT) is leading the AI sector thanks to its OpenAI investment with the creation of ChatGPT. This successful program has allowed Microsoft’s Bing search engine to take the lead over Google’s search engine in just a few months. Microsoft’s revenue during the fourth quarter of 2022 demonstrated a 24% increase from the same quarter in 2021, while their full-year revenue was 32% higher than the previous year. These impressive stats demonstrate the value of more AI-driven products in Microsoft, and also make a strong case for investors to consider Microsoft one of the top AI stocks for this year.
The Trade Desk (NASDAQ:TTD) is another one of the best AI stocks for the future years. Although their revenue has dropped due to the current economic climate, their Galileo CRM data solution for the open internet looks to be an appropriate solution. Analysts are expecting revenue to increase year-over-year for both the first and second quarters, which could mean higher earnings down the line. With these advancements and continued innovation, The Trade Desk stock could have strong upside potential in the near future and beyond.
Upstart (NASDAQ:UPST) rounds out the list of the best AI stocks to look out for this year. Upstart uses AI to look beyond the traditional FICO score when determining credit eligibility and this has contributed to the success of its loans. Despite the current economic downturn, the company managed to beat expectations of both the top and bottom lines. Moreover, the use of their AI technology may give Upstart a better edge during the economic recovery and make it one of the top AI stocks to watch in 2023.
Overall, investors should consider these three AI stocks for the potential upside in the near future. Although economic forecasts should be taken into account, if interest rates start dropping and the economy does begin to improve later this year, these AI stocks could prove to be a solid investment.
