Artificial intelligence is the “next big thing” on the Street. And it’s already profoundly impacting almost everything AI-related, including these best AI stocks to buy. For example, Nvidia (NASDAQ:NVDA) ran from about $280 to $387 on the heels of blowout AI-boosted earnings. Advanced Micro Devices (NASDAQ:AMD) popped from about $85 to $125. Microsoft (NASDAQ:MSFT) ran from $280 to $327. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) exploded from about $107.50 to about $130 a share.
But this is just the start. As AI changes everything about everything, it could create a potential $1.81 trillion market by 2030, according to Grand View Research. We’re just in the early innings of a massive ballgame here, with a big opportunity ahead. Now, the question is which stocks can still be bought for easy exposure to AI. Here are three.
Best AI Stocks to Buy: Nvidia (NVDA)
Hands down, Nvidia is the crème da la crème of the AI boom. Granted, most of us know Nvidia for its GPUs used by gamers or its involvement with cryptocurrencies. Nowadays, more investors are learning it also has big exposure to AI with its AI-driven GPUs, as well. In fact, it’s the company’s A100 and H100 GPUs, which allow AI software to make decisions, and quickly process information very quickly.
But wait, there’s more. Thanks to the Ai boom, NVDA blew earnings out of the water. First-quarter earnings per share of $1.09 handily beat expectations by 17 cents. Revenue of $7.19 billion also beat consensus estimates by a whopping $670 million. Additionally, Nvidia even saw record data center revenue of $4.28 billion.
In short, when it comes to investing in AI, Nvidia is a must-own stock.
Or, take a look at AI software stock, C3.ai (NYSE:AI), which exploded from a low of about $20 to $42 over the last several weeks. All thanks to the AI story and blowout Nvidia earnings. Even better, I expect the stock to run to about $50 a share from here. And so does Wedbush analyst Dan Ives, which just upgraded the stock to outperform, with a price target of $50 from $25.
In addition, the company delivered solid numbers, beating the top and bottom lines. And with the company looking to be cash positive and non-GAAP profitable by next year, the company is moving in the right direction.
Also, JMP Securities just raised its price target to $38 from $28. Canaccord just raised its target to $27 from $21. Morgan Stanley raised its price target to $20 from $12, with Piper Sander raising its target to $29 from $23 a share.
SoundHound AI (SOUN)
Another hot stock for easy AI exposure is SoundHound AI (NASDAQ:SOUN), a $652 million company that develops conversational AI technology. Its goal is to allow humans to interact with technology as they would with their friends. Better, the company is working with the auto industry, integrating voice assistants into vehicles – which could be massive, with SOUN expecting 90% of new cars to have auto assistants.
Thanks to what the company called “an incredible surge in demand for conversational AI,” the company saw a 56% increase in revenue year-over-year. Gross margins were up to 71% from 56%. First quarter earnings per share was a net loss of 13 cents, which was an improvement YOY and sequentially.
Better, according to the press release, “SoundHound continues to expect 2023 revenue to be in a range of $43 to $50 million. The company continues to expect to be adjusted EBITDA positive in the fourth quarter of 2023.”
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.