Artificial intelligence has become one of the hottest investment themes of the year, with several AI stocks to buy exploding right along with it. In fact, according to Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030. Morgan Stanley says AI is creating a potential $6 trillion opportunity for the tech industry. Bank of America says we’re on the brink of an iPhone moment with a potential $15 trillion impact.
Microsoft CEO Satya Nadella once noted that AI is the “defining technology of our times.” It was also mentioned that AI would have the capability of changing the way we drive our cars, automate our factories, create jobs, and even help improve our healthcare. That being said, if you haven’t invested in the AI boom just yet, what are you waiting for? Here are three top AI stocks to buy that you may want to consider just to get started.
|THNQ||ROBO Global Artificial Intelligence ETF||$32.49|
AI could soon be a $600 billion addressable software market, says C3.AI (NYSE:AI) CEO Tom Siebel, as noted by Yahoo Finance. “Everyone will be using enterprise AI applications, just like they use PCs, just like they use relational databases, just like we use CRM. Generative AI definitely accelerated the interest in AI. So, AI is now at a peak, and that seems to work very well for C3.ai because I think we’re the largest application player in that space.”
Better, the company is making money by developing AI solutions and software for companies like Microsoft, Alphabet, and Amazon, for example. In addition, according to DA Davidson analyst Gil Luria, C3.ai’s generative AI will “drive an acceleration of growth by the end of the year,” as quoted by MarketWatch. Wedbush analyst Dan Ives also says while there’s some froth in this $800 billion market, “a handful of players are leading the way” and “C3 is right place, right time.”
SoundHound AI (SOUN)
Another one of the top AI stocks to buy is SoundHound AI (NASDAQ:SOUN). This is a $552.58 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. 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 Keyvan Mohajer, CEO.
Also, after a rough few weeks, the SOUN stock is coming back strong. In fact, since mid-March, it ran from $1.57 to a recent high of $2.76. From here, I’d like to see it run back to its 2023 high of $4.97 initially. Helping, the U.S. Chamber of Commerce just said, “virtually every business and government agency” will use AI, noting that it will have a “profound” impact on society, the economy, and national security,” as quoted by Seeking Alpha.
ROBO Global Artificial Intelligence ETF (THNQ)
There’s also the ROBO Global Artificial Intelligence ETF (NYSEARCA:THNQ), which invests in companies that are leading the AI revolution. Included in THNQ are companies developing the technology and infrastructure enabling AI, such as computing, data, and cloud services, 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 me exposure to Nvidia, Twilio, Atlassian Corp., Splunk, Cloudflare, C3.ai, Amazon, Microsoft, and 61 other AI-related holdings. Since the start of the year, the THNQ ETF exploded from a low of about $26 to $32.49. From here, with AI firing on all cylinders, I’d like to see it double from here.
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.