In the age of AI breakthroughs, certain companies have risen as leaders in data analytics and cybersecurity, revolutionizing enterprise solutions. These firms are pushing boundaries and offer investment opportunities amid their remarkable innovation.
Yet, lesser-known AI stocks concentrating on robotics and practical applications present appealing valuations. AI’s real-world impact is felt in robotics, which appears to be an opportunity. Yet these stocks often go unnoticed by Wall Street. Unlike white-collar AI firms that have priced in substantial growth, robotics is still on the rise. As AI advances, robots are becoming capable of handling more intricate manual tasks, offering substantial growth potential for the companies driving this progress.
Let’s look at three appealing AI stocks to snatch up at their current levels.
Amazon (NASDAQ:AMZN) regained strength, surging 10% in early August on robust profit reports. The company’s Q2 earnings outperformed many analysts’ expectations, with the Amazon’s earnings per share coming in at 65 cents.
This exceeded estimates by 85%, with revenue hitting $134.4 billion, also outperforming analysts’ $131.5 billion projection. Amazon Web Services (AWS) generated $22.1 billion, again surpassing the expected $21.8 billion. These results marked Amazon’s strongest earnings since Q4 2020, achieved through aggressive cost-cutting measures, including its largest-ever layoffs.
Amazon’s growing, diverse portfolio, from Amazon Business to Whole Foods, adds value, cost savings, and convenience for customers. The grocery business, including Whole Foods and Amazon Fresh, expands profitably by boosting efficiency and introducing new store formats. Amazon invests heavily in innovation across areas like Kuiper, Zoom, and Alexa, offering significant growth potential in line with its long-term vision.
AI excitement seemed to peak in July, affecting stocks like Microsoft (NASDAQ:MSFT). Despite short-term uncertainty, AI could boost MSFT in the long run. Microsoft is a stable AI stock with vast reach. Its early OpenAI investment provides a unique advantage.
Azure is growing relatively quickly in the cloud computing sector. Key Azure Arc’s customers such as Carnival and Domino’s increased by 150%. Azure AI thrives with partnerships like Meta and OpenAI, enhancing Microsoft’s AI innovation. Their industry-tailored solutions in sustainability and healthcare succeed.
Azure OpenAI Service is used by 11,000 diverse organizations like IKEA and Flipkart. Collaborations with Mercedes-Benz and Moody’s enhance AI integration. Development tools like GitHub Copilot are vital for 27,000 organizations such as Airbnb and Dell. Dynamics 365 exceeded $5 billion in revenue. Microsoft is a tech protection stock.
Google is a tech leader, focusing on Chrome security against quantum hacking. Investors care about AI development, vital for Google’s value. Alphabet’s (NASDAQ:GOOG NASDAQ:GOOGL) shares surged 50% this year, driven by AI leadership and ad spending recovery. Expectations rise with Bard chatbot integration.
Highlighting this remarkable surge, Alphabet unveiled its Q2 earnings report, which marked a milestone achievement, being its most stellar performance in over a year. For the quarter that concluded on June 30, Alphabet reported an impressive earnings per share of $1.44, handily surpassing the expectations that had been conservatively set at $1.34.
For those betting on key sectors which could reasonably see a boost from artificial intelligence, online advertising is one key area looked at by many. In this space, no better options exist other than Alphabet.
Accordingly, this stock remains a top pick on my list right now for those thinking long-term about the AI revolution.
On the date of publication, Chris MacDonald has a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.