Top 3 AI-Driven Tech Stocks with Strong Fundamentals and Growth Potential
April 25, 2023
Are you wondering whether to buy tech stocks now? One of the most important segments in technology is artificial intelligence (AI), a popular investment choice for its revolutionary advancements, strong growth stories, and widespread applications. Companies with AI technology benefit from increased efficiency, cost savings, enhanced decision-making, scalability, competitive advantages, and improved customer experiences. Our top 3 AI-driven tech stocks offer great investment characteristics and performance that outpaced the tech sector during the downturn.
Semiconductor Industry Thrives with AI Technology: Opportunities for Investors
The semiconductor industry, one of the most promising tech industries, has seen a transformative effect from AI. According to McKinsey & Company, AI is revolutionizing the semiconductor industry from research, design, production to sales. As AI is deployed for neural networks, facial recognition, targeted marketing, and electrification of vehicles, semiconductors are expected to offer the next wave of economic value. Semiconductors are essential components of most tech-advanced products, including electronic devices, healthcare, and transport.
Assessing Risks and Rewards of Investing in Tech Stocks: A Closer Look
Investing in tech stocks carries risks such as volatile price swings, competition, and geopolitical factors. The global AI market is expected to grow to nearly $400B by 2025, but there are risks involved in investing in AI. However, as a long-term-focused investor, you can benefit from the cost savings of using AI machines to replace human capital. Our top 3 AI-driven tech stocks offer strong fundamentals and competitive advantages that make them resilient in both up or down markets.
Revolutionizing Industries with Artificial Intelligence: Top AI Stocks to Buy
Our top-ranked semiconductor stock is Axcelis Technologies (ACLS), offering a solid valuation, tremendous momentum, and consistently beating earnings. With its focus on designing semiconductors for electric vehicles, AI, and the Internet of Things (IoT), ACLS has benefited from chip shortages and the demand for AI. Our other two top AI-driven tech stocks offer quant ratings and strong fundamentals, making them excellent options for your investment portfolio.
Amid inflation, interest rates, and currency fluctuations, cloud-based and software stocks have experienced a downside of -21% over the past year, according to the cloud index. However, investors who seek strong buy stocks with solid fundamentals can capitalize on the demand for AI products and services amid the digital transformation. Super Micro Computer, Inc. (SMCI) is one of the Top 10 Tech Stocks for 2023, with a quant rating of Strong Buy and an impressive sector and industry ranking. SMCI captures market share in the AI industry by developing and manufacturing high-performance server and storage solutions for AI and High-Performance Computer (HPC) workloads. Despite trading near its 52-week high of $119.24/share, SMCI is still extremely undervalued, with bullish momentum and excellent investment characteristics on a sector-relative basis.
Salesforce Inc. (NYSE:CRM) is a leader in the Customer Relationship Management (CRM) technology space with a market capitalization of $197.51B. By leveraging cloud computing, Salesforce has revolutionized how companies engage with their customers. Its latest innovation, Einstein GPT, is the world’s first generative AI for CRM, which delivers AI-produced content for sales, service, marketing, commerce, and IT interaction at scale. Salesforce has partnered with OpenAI and utilizes the Salesforce Data Cloud to harmonize and unify customer data, which enables customers to generate content that adapts to changing customer needs in real-time. With a strong buy rating and a high sector and industry ranking, Salesforce is a top pick for investors looking for exposure to the AI-driven future of CRM technology.
Summarizing the above
- AI technology is a popular investment choice for its revolutionary advancements, strong growth stories, and widespread applications.
- The semiconductor industry has seen a transformative effect from AI and is expected to offer the next wave of economic value, as semiconductors are essential components of most tech-advanced products.
- Investing in tech stocks carries risks such as volatile price swingsa, competition, and geopolitical factors. However, investing in AI-driven tech stocks with strong fundamentals and competitive advantages can make them resilient in both up or down markets.
- The top 3 AI-driven tech stocks to buy are Axcelis Technologies (ACLS), and two other AI-driven tech stocks with quant ratings and strong fundamentals, making them excellent options for your investment portfolio.
Practical advice for stock buyers and stockholders of AI technology companies sector:
- Research the companies’ focus on AI technology and its potential applications in the industry they are operating in.
- Evaluate the company’s financial performance, competitive advantages, and future growth prospects.
- Assess the risks associated with investing in AI-driven tech stocks, such as volatile price swings, competition, and geopolitical factors.
- Think about a plan for investing in the long run so that you can take a full set future benefits. Despite the already huge popularity and rapid development of the artificial intelligence industry, it will still take a few more years for many ventures to solidify their financial footing.