3 Top AI Stocks to buy in March

Key Points:

  •  GPUs from Nvidia are critical to the operation of artificial intelligence.

  • CrowdStrike's cybersecurity software is powered by artificial intelligence (AI).

  • C3.ai is a young firm with a bright future. 

 3 Top AI Stocks to buy in March  

 

3 Top AI Stocks to buy in March

When corporations are seeking to advertise their products, artificial intelligence (AI) is frequently utilized as a buzzword. They almost always have some type of AI, but it isn't as revolutionary as it is made out to be. 


Nvidia (NASDAQ NVDA), CrowdStrike (NASDAQ  CRWD), and C3.ai are three companies that are making an impact in the market with real AI technologies (NYSE: AI).

This group of stocks is well-diversified, providing investors with three different ways to approach an AI investment. 


CrowdStrike utilizes AI in cybersecurity, and C3.ai's products help enterprises forecast the future across a large company. 


Nvidia offers the hardware that powers AI technology; CrowdStrike uses AI in cybersecurity; and C3.ai's solutions help organizations predict the future across a large organization. 

 

Artificial intelligence, when used appropriately, can have a significant impact on a product, and each of these companies has done so.

Nvidia  (The Grace AI chip from Nvidia outperforms Intel Ai CPUs)

Nvidia's business increased as a result of the company's invention of the graphics processing unit (GPU) in 1999.

 

Initially, the GPU was utilized for computer graphics, but it soon found new applications in parallel computing and AI.

 

Deep learning (the way computers learn) is a major idea in AI, and GPUs are used to analyse and compute the data supplied into these models.

 

If you invest in Nvidia, you are a direct benefactor of AI implementation everywhere. 

Nvidia's fiscal year 2022 (ending Jan. 30, 2022) performance was strong as one of the leading technology businesses. 

 

Year over year revenue increased by 61 percent to $26.9 billion, but quarterly revenue growth slowed to 53 percent.According to its fourth-quarter presentation, Nvidia's AI sales are bundled within its data center sector, which increased at a rate of 71 percent year over year, outpacing overall revenue.

 

 data center expansion was fueled by strong demand for AI solutions.

Many companies employ Nvidia's AI technology, including Meta Platforms, which recently revealed that it was using Nvidia's products to develop their AI research supercluster. 

 

By purchasing Nvidia's stock, you may take a broad approach to AI investment. With the stock down roughly 30% from its all-time high, it could be an excellent moment to invest.

CrowdStrike 2

CrowdStrike, which is transitioning to a more application-based strategy, offers cybersecurity solutions through its cloud-based service. 

 

Customers are secured by software that monitors over 1 trillion events per day through the Falcon platform. CrowdStrike then utilizes AI to learn from these attacks and modify the program over time, such that when a customer in France witnesses an attack, another company in the United States is protected from a similar threat.

 

With foreign powers like Russia threatening cyber assaults in retribution for sanctions against them, cybersecurity has never been more critical. 

 

The Wiper virus, which destroys files from computers and is protected against by CrowdStrike, was one of the weapons employed against Ukraine.

 

CrowdStrike's software is used by some of the world's most prominent companies, with 15 of the top 20 banks and 65 of the Fortune 100 using it. 

 

CrowdStrike had a strong fourth quarter (ending January 31, 2022), with revenue of $431 million, a 63 percent increase over the previous year.It was also free-cash-flow positive, converting 30% of revenue into an additional $127 million in cash.

 

CrowdStrike's business is executing on all levels, with customers up 65 percent year over year to 16,325 and yearly recurring revenue up 65 percent to $1.7 billion. The company is a fantastic opportunity to put money into AI applications, and the cybersecurity industry has never been more important.

C3 ai

It's practically impossible to fully comprehend the complexities of a multibillion-dollar corporation. Management, on the other hand, can make well-informed decisions with the help of technology.  

 

Data scientists can use C3.ai's tools to deploy prebuilt and customized AI apps to help a business in a variety of ways, including supply chain management, energy efficiency, and customer engagement.

 

The company's tools are widely regarded as among the best on the market. On Omdia's list of machine-learning development platforms, C3 ai came out on top.  

 

It was also discovered that while installing AI solutions on Amazon Web Services (AWS), it increased developer productivity by 26 times by reducing the amount of code required by over 99 percent.

 

C3.ai is a new firm that was created in 2009 and currently has only 218 customers. Still, this is an increase of 82 percent year on year, bringing total revenue for the third quarter (ending January 31, 2022) to $69.8 million, a 42 percent increase over the previous year. 

 

It also received a $500 million contract from the US Department of Defense for a five-year period.

The company still has a long way to go before generating a profit, as its operating margin was negative 22 percent, down from negative 24 percent in the previous quarter. 

 

It will take some time for C3.ai to gain traction, but if its best-in-class solutions are widely accepted, it might be a terrific investment.

 

These three businesses are in distinct phases of development. If investors are putting up an AI basket, these three appear to be a good place to start, with each business trading at a discount to its all-time high.

 

 Today could be an excellent time to get into these companies with the intention of owning the stocks for three to five years. Artificial intelligence is changing the world right now, and investors should pay attention.

 see also  The 7 most innovative companies in artificial intelligence 2022

 

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