Artificial intelligence (AI) has captivated the tech world over the past year, sending countless stock prices soaring. However, AI is by no means a new concept. So you might ask yourself why it suddenly exploded.
Although computers are great at numerical tasks and data processing, they cannot always achieve natural human abilities such as language, visual processing, and various generative tasks. However, AI bridges the gap by using machine learning to complete tasks that would normally require a human.
As a result, advances in AI could potentially benefit a wide range of markets, including consumer technology, self-driving cars, healthcare, education, and more. And with the market and technology still in its infancy, AI seems to have its limits.
In fact, the AI sector is expected to expand at a compound annual growth rate of 37% through 2030, reaching a valuation of nearly $2 trillion. The market's huge potential suggests it's not too late to invest and reap the benefits of AI tailwinds well into the future.
So, here are three AI stocks that are trending as buys this April.
1. Intel
It wasn't easy to be intel (NASDAQ:INTC) However, the company made significant changes to its business model last year, which could make it an attractive long-term option for investing in AI.
Intel is expanding its market with the launch of a new line of Gaudi 3 AI graphics processing units (GPUs). The chip was released earlier this month and claims to deliver 50% better inference and 40% more power efficiency than similar products from the company. Nvidia.
In addition, Intel is leveraging its long-standing advantages and expertise in central processing units (CPUs) to secure a top spot in the AI space by expanding the AI capabilities of its processors.
It will take time for Intel to develop its AI business and catch up with rivals like Nvidia and Nvidia. AMD. However, the chart above shows that Intel is potentially the most valuable AI chip stock. Intel has the lowest forward price/earnings ratio (P/E) of these companies, making it relatively cheap.
The company is on an exciting growth trajectory and you can't afford to miss out now.
2. Apple
apple (NASDAQ:AAPL) The company has been quieter on the AI front than many of its peers. However, the company is known for taking its time developing new technology. Apple isn't necessarily known for pioneering innovation, but it is known for perfecting established technologies with a unique design language that attracts billions of users and dominates the industry. Masu.
Before Apple, the markets for things like Bluetooth headphones, smartwatches, and tablets were led by different companies. But with the launch of products like AirPods, Apple Watch, and iPad, competitors have become almost a distant memory. As a result, it's not too worrying that Apple isn't currently a top-tier company in the AI space.
The tech giant seems to be quietly honing its AI technology. Meanwhile, with leading market share in multiple areas of consumer technology, the company could be a key growth driver in steering the industry and putting AI in the hands of the average shopper. .
On April 11, Apple stock dipped slightly when Bloomberg reported that the company was overhauling its entire Mac lineup to expand AI capabilities and meet surging demand for such hardware. Rose. Meanwhile, the tech company has been gradually adding new AI features across its product lineup, including improvements to Siri on the iPhone and new gestures on the Apple Watch.
Last year, Apple generated about $107 billion in free cash flow. This significantly outpaces some of AI's most prominent players, including: microsoft, meta platformand Amazon. The numbers suggest that Apple is well-positioned to expand in the emerging AI market and catch up with rivals over the long term.
Apple stock trades at 25 times forward earnings, making it a reasonable buy and an exciting way to invest in AI.
3. Alphabet
alphabet (NASDAQ:GOOG) (NASDAQ:Google) Over the past year, the AI space has been somewhat overshadowed by cloud rivals Microsoft and Amazon. But the company is arguably one of the most exciting AI stocks with long-term returns.
The company is home to many leading brands, including Google, Chrome, Android, and YouTube. These services regularly attract billions of users, giving Alphabet ample opportunity to promote its AI services.
As a result, the company's recent pivot to more profitable markets is promising. Earlier this year, Alphabet announced Gemini, its most advanced AI model to date. Its debut wasn't perfect, and the model made several mistakes in its launch presentation, which forced the company to temporarily suspend its image generation services.
However, Alphabet is moving forward with AI development. The company recently announced plans to combine its DeepMind and Research teams to drive efficiency in its AI department. Alphabet will move his AI-focused Responsible AI team to Deep Mind, where models will be built.
Like Intel and Apple, Alphabet stock is cheap compared to other AI stocks. The company currently trades at an attractive forward P/E ratio of 23x, significantly lower than Microsoft's 34x and Amazon's 43x.
Alphabet stock has been a hot buy this month, and you won't want to miss it.
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Suzanne Frey, an Alphabet executive, is a member of the Motley Fool's board of directors. Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool's board of directors. John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool's board of directors. Dani Cook has no position in any stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Intel and recommends the following options: Long January 2025 $45 Calls on Intel, Long January 2026 $395 Calls on Microsoft, Short January 2026 $405 Calls on Microsoft, and $47 May 2024 Calls on Intel. It's a short call. The Motley Fool has a disclosure policy.
3 Artificial Intelligence (AI) Stocks to Buy in April was originally published by The Motley Fool.
