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Forget Nvidia: Here are 3 more artificial intelligence (AI) stocks worth buying


certainly, Nvidia Its share price is up an eye-popping 1,980% over the past five years, meaning a $10,000 investment in 2019 would be worth a staggering $208,000 today.

But as the saying goes, past performance is no guarantee of future results. So let’s consider some alternatives to King of Artificial Intelligence Stocks. Here are three names that I think investors looking at artificial intelligence would be wise to consider.

A hand hovers over a holographic stock chart.

Image source: Getty Images.

Advanced Micro Devices

first of all Advanced Micro Devices (NASDAQ:AMD)Granted, AMD may not have received the same level of AI buzz as its rival Nvidia, but the company is no less benefiting from the AI ​​revolution. In fact, AMD stock has soared 179% since January 2023.

Like Nvidia, AMD designs advanced semiconductors that can be used for training large language model. Its latest product focused on artificial intelligence is MI300X chip, to be unveiled in December 2023. so far, MicrosoftOpenAI and meta platform All have expressed interest in using the chip, which offers an alternative to current AI studio Nvidia’s H100 chip.

The MI300X could help AMD gain a key foothold in the AI ​​accelerator market, especially considering its cost, which will sell for about $10,000 to $15,000, well below the H100’s $40,000 price tag.

With the first deliveries of the MI300X underway, it will take some time to see demand for the chip, but AMD CEO Lisa Su expressed optimism about the MI300X and AI in general as early as December , she predicted that the artificial intelligence chip market will reach US$400 billion by 2027, compared with approximately US$40 billion in 2023. If her predictions are anywhere near accurate, AMD investors will have a lot to be happy about in the coming years.

Oracle

Next is Oracle (NYSE:ORCL)an under-the-radar artificial intelligence stock if there ever was one.

The company is probably best known as one of the quintessential “tech bubble” stocks of the early 2000s. The database software giant’s stock soared during the first wave of Internet adoption in the late 1990s before plunging 84% during the 2001 bear market. Year 2003.

Nonetheless, Oracle is now back and riding high thanks to its data center business. In its latest earnings report (for the three months ended February 29, 2024), Oracle beat expectations, highlighting:

  • Total revenue was US$13.3 billion, an annual increase of 7%

  • Cloud revenue is US$5.1 billion, an annual increase of 25%

  • Net profit was US$2.4 billion, an annual increase of 27%.

Additionally, the company provided forward guidance. In fact, Chief Financial Officer (CFO) Safra Catz struck a very optimistic tone, saying the company is likely to exceed its annual revenue target of $65 billion by 2026. Additionally, Chairman Larry Ellison emphasized that soaring spending by hyperscalers like Microsoft is driving Oracle’s growth.

In short, the artificial intelligence wave is helping Oracle find its mojo again—and investors should take note.

Palantir Technology

Finally Palantir Technology (NYSE:PLTR)a company at the forefront of artificial intelligence-driven big data analytics.

Some investors may find Palantir’s business model difficult to understand. Simply put, Palantir helps organizations operate more efficiently. The company achieves this through multiple artificial intelligence-driven software platforms that can analyze large data sets, identify patterns and provide solutions.

Financially, it’s clear that Palantir is winning. Its customer base, revenue, net profit and free cash flow are all growing. Additionally, the company began turning to the private sector after generating most of its early revenue from government contracts.

Even now, Palantir generates more revenue from government entities ($1.2 billion in 2023) than from commercial customers ($1 billion in 2023).

However, this may change. Palantir’s commercial revenue is growing at about 20% annually, while government revenue is growing at 14%. If this trend continues, Palantir’s commercial revenue will exceed government revenue by 2027.

Regardless, investors shouldn’t take Palantir lightly, and the company’s rapid growth means it could become the next big name in artificial intelligence investing.

Should you invest $1,000 in Palantir Technologies right now?

Before buying Palantir Technologies stock, consider the following factors:

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Randi Zuckerberg is the former director of market development and spokesperson for Facebook, the sister of Meta Platforms CEO Mark Zuckerberg, and a board member of The Motley Fool. Jack Lerkey The Motley Fool holds a position in Nvidia. The Motley Fool owns and recommends Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, Oracle and Palantir Technologies. The Motley Fool recommends the following options: Long January 2026 Microsoft call at $395, Short 2026 short 2026 Short 2026 short 2026 Short 2026 short January 2026 $405 call on Microsoft. Motley Fool has a disclosure policy.

Forget Nvidia: Here are 3 more artificial intelligence (AI) stocks worth buying Originally published by The Motley Fool



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