Let me start by saying that, from where I’m sitting, it’s a safe assumption that Artificial Intelligence isn’t going anywhere anytime soon. If there was anything truly “here to stay,” AI is it, and in seemingly endless ways. While AI isn’t brand new, there’s no question that technology has reached a pivotal moment in our culture and has captured the minds of just about every person not living off the grid. So, we already know how cool AI platforms such as ChatGPT are, but what makes AI such a good investment?
Simply put, AI’s disruptive and transformative nature leaves many opportunities across many industries. As businesses adopt AI to innovate and improve their performance, demand for AI-related products and services will inevitably grow, leading to massive returns. Traditional business models will have to face adjustments or take a back seat to the advancements in machine learning. As AI continues to grow, it’s attracting many long-term investors. It’s catching on quickly, too, so now is the time to hop on board.
We have three AI-involved companies whose stocks are each performing well, thanks largely to the big strides we see in ChatGPT. I’m eager to break ‘em down, so join me here for a look:
Amazon.com Inc (AMZN)
Amazon.com, Inc. (AMZN) is a multinational online retail company. AMZN offers consumer products through online and physical stores, both domestically and internationally. AMZN also provides cloud computing services on a global scale. Founded by Jeff Bezos in 1994, AMZN is headquartered in Seattle, WA. AMZN is up YTD by 39.02%, with a positive SMA. AMZN has a $1.08 trillion market cap, a PEG ratio of 2.25x, a P/B ratio of 2.06x, and YOY growth in key areas such as revenue (+9.37%), net income (+182.52%), EPS (+181.58), and net profit margin (+175.43). For its MRQ earnings call, AMZN beat analysts’ projections for EPS and revenue by 43.26% and 2.21%, respectively, and it has a free cash flow of just over $9 billion. AMZN has a TTM revenue of $524.9 billion at $0.42 per share, from which it profited $4.29 billion through its 2.54% margin. With a 10-day average volume of 67 million shares, AMZN has an average price target of $135, with a high of $220 and a low of $85; this represents a potential 41% price increase from where it sits at the moment. AMZN has 49 buy ratings and 4 hold ratings.
NVIDIA Corp (NVDA)
NVIDIA Corp. (NVDA) designs and manufactures GPUs, chipsets, and multimedia software for computers. NVDA’s brands like GeForce, Quadro, DGX, and GRID each apply computing capabilities for various uses, including autonomous systems and gaming devices. NVDA was founded in 1993 by Jen Hsun Huang, Curtis Priem, and Chris Malachowsky and is headquartered in Santa Clara, CA. On a rally with room to breathe, NVDA is up by 109.02% YTD. NVDA has a $755.25 billion market cap, and its MRQ earnings report showed an EPS of $1.09 vs. $0.92 expected (+18.80% surprise) and $7.19 billion in sales vs. $6.52 billion predicted (+10.26% surprise). NVDA reports $27 billion in TTM revenue at $1.75 per share, and it made $4.37 billion via its 16.69% net profit margin. NVDA has a 0.05% annual dividend yield and a quarterly payout of 5 cents ($0.20/yr) per share. With a 10-day average trading volume of 40.91 million shares, NVDA has been given a median price target of $455, with a $600 high estimate, representing a potential 30% price jump. NVDA has 36 buy ratings and 12 hold ratings.
Baidu Inc (BIDU)
Baidu, Inc. (BIDU) is a tech firm mainly providing internet search and online marketing solutions. BIDU’s products include Baidu App, Baidu Search, Baidu Feed, Haokan, Quanmin, and more. BIDU offers search-based and feed-based online marketing services, while iQIYI is its online entertainment platform. BIDU was founded by Xu Yong and Yanhong Li in 2000 and is based in Beijing, China. BIDU is up YTD by 4.14% and has a safe 0.67 beta. With a $41.64 billion market cap, BIDU has $18.4 billion in TTM revenue at $5.63 per share, profiting $1 billion on a 16.60% margin. BIDU has a P/E ratio of 13.7x, a forward P/E (NTM) of 12.1x, a 0.39x PEG, a P/S ratio of 2.47x, a P/B ratio of 1.36x, and a 37.80% D/E measure. BIDU has beaten analysts’ EPS forecasts for the last 13 consecutive quarters, surprising by 29.1% for its MRQ. BIDU shows excellent YOY growth in revenue (+9.62%), net income (+458.19%), EPS (+652.78%), and net profit margin (+701.39%), with a free cash flow of $16.75 billion and a 10-day average volume of 3.53 million shares. BIDU has a median price target of $173.67, with a high of $230.93 and a low of $110.95, representing a potential 94% price upside. Buy Now and Hold.
AI is by far the biggest tech investing trend of 2023. But Ross Givens says the #1 artificial intelligence stock is NOT Microsoft, Google, Amazon or Apple.
Nope – his research is pointing to a tiny, under-the-radar stock that’s trading for just $3 right now…
And could soon shoot to the moon, handing early investors a windfall.
This company already has 98 registered patents for cutting-edge voice and sound recognition technology… And has lined up major partnerships with Honda, Netflix, Pandora, Mercedes Benz and many, many others.
So if you missed out on Microsoft when it first went public back in 1986… This could be your shot at redemption.