3 AI Stocks To Buy Before They Soar To New Heights In 2023
These are three hot ways to invest in the AI boom
- Consider these red-hot AI stocks this year.
- C3.AI (AI): The company just raised its outlook on strong demand.
- SoundHound (SOUN): The company could see a big opportunity in the auto market.
- ROBO Global Artificial Intelligence ETF (THNQ): ETFs offer diversification at a low cost.
The artificial intelligence (AI) story has fueled a massive rally in tech, but it’s far from over. In fact, as AI revolutionizes just about every industry out there, it could create a $1.81 trillion opportunity. Additionally, some analysts are predicting that AI could boost profitability as much as 38% by 2035. In short, we’re looking at what could be a massive opportunity for investing in AI stocks before they soar to new heights.
Data last updated: May 24, 2023 6:40 PM EDT
| SYMBOL | COMPANY | PRICE |
|---|---|---|
| AI | C3.ai, Inc. | $27.85 |
| SOUN | SoundHound AI, Inc. – Class A Common Stock | $2.98 |
| THNQ | Robo Global Artificial Intelligence ETF | $32.30 |
C3.AI (AI)
Near-term, I’d be wary of C3.Ai (NYSE:AI). At the moment the stock is overbought, stuck at triple top resistance. It’s due for a healthy correction here. However, once that correction happens, I’d be all over this stock. For one, Goldman Sachs (NYSE:GS) just said generative AI could raise global GDP by 7% over the next 10 years.
Even better, C3.AI just raised its outlook. It now expects total revenue for its fourth fiscal quarter 2023 to come in between $72.1 million and $72.4 million, exceeding the company’s own guidance. C3.ai also expects an adjusted operating loss of $23.7 million to $23.9 million, which is narrower than previous expectations. C3.AI also noted in their press release, “Overall business environment for enterprise AI is more active than we have seen since the company’s inception and seems to be accelerating.”
SoundHound AI (SOUN)
Another one of the top AI stocks to buy is SoundHound AI (NASDAQ:SOUN), a $635 million company that develops conversational AI technology. Its goal is to allow humans to interact with the tech as they would with their friends. Better, the company is working with the auto industry, integrating voice assistants into vehicles. That could create a massive market for SoundHound, with the company expecting 90% of new cars to have voice assistants.
“Conversational AI is at a watershed moment and our proprietary Dynamic Interaction and Generative AI solutions are perfectly positioned. From electricity to telecommunications to internet search, each generation has established a new foundational capability to better serve society, and AI will catalyze this next horizon,” said CEO Keyvan Mohajer.
ROBO Global Artificial Intelligence ETF (THNQ)
If you want to diversify and take advantage of many AI stocks, there’s the ROBO Global Artificial Intelligence ETF (NYSEARCA:THNQ). This ETF invests in companies that are leading the AI revolution. Included in THNQ are companies developing the technology and infrastructure enabling AI, as well as companies that apply AI in various verticals, from business processes to e-commerce and healthcare.
With an expense ratio of 0.75%, the THNQ ETF offers exposure to Nvidia (NASDAQ:NVDA), Twilio (NYSE:TWLO), Atlassian Corp. (NASDAQ:TEAM), Splunk (NASDAQ:SPLK), Cloudflare (NYSE:NET), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) and 62 other AI-related holdings. Since the start of the year, the THNQ ETF exploded seeing a year-to-date increase of 23%.
This post originally appeared at InvestorPlace.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Category: Stocks
