12 Best AI Stocks To Buy Now

Published on September 6, 2022 at 3:18 pm by Hamna Asim in Hedge Funds, News

In this article, we discuss 12 best AI stocks to buy now. If you want to see more stocks in this selection, go directly to 5 Best AI Stocks To Buy Now.

In 2021, the global artificial intelligence market was valued at $328.34 billion. The market is expected to grow from $387.45 billion in 2022 to $1,394.30 billion by 2029, at a CAGR of 20.1% during the forecast period. Amid the COVID-19 pandemic, Fortune Business Insights predicted that demand for AI skyrocketed about 150% in 2020 compared to 2019.

Josh Pokrzywinski, the industrial research director at Morgan Stanley, released a report this summer called “The Deflation Enablers”, which highlights how corporations allocate capital expenditure amid a high interest rate period. The Morgan Stanley report suggests that big enterprises will invest in artificial intelligence, clean energy, robotics, software innovation, and clean commercial heating and air conditioning advancements that can rapidly lead to efficiency savings. The prices for these technologies are dropping swiftly, which implies that goods and services using these technologies will be notably cheaper over the next multiple years.

The use of artificial intelligence has not penetrated the market completely yet, and it is advancing the fields of biotechnology and pharmaceutical development, according to Morgan Stanley analyst Vikram Purahit. AI enables companies to eliminate unpromising processes quickly, slashing time for preclinical drug development as much as 75%, and lowering early-stage development costs by up to 50%. As AI becomes increasingly important in multiple applications, some of the best AI stocks to buy now include Coupa Software Incorporated (NASDAQ:COUP), Autodesk, Inc. (NASDAQ:ADSK), and DocuSign, Inc. (NASDAQ:DOCU).

Photo by lucas law on Unsplash

Our Methodology

To make this list of best AI stocks to buy, we selected artificial intelligence stocks with market capitalization of under $50 billion as of September 5. These securities have potential to grow exponentially as the demand for AI becomes mainstream. These stocks display positive growth catalysts, healthy full-year guidance, optimistic analyst ratings, and strong hedge fund sentiment as of Q2 2022.

We have arranged the list according to the hedge fund sentiment around the securities, which was assessed from Insider Monkey’s Q2 2022 database of about 900 elite hedge funds.

Now, let’s start our list of 10 best artificial intelligence stocks to buy.

Best AI Stocks To Buy Now

12. CCC Intelligent Solutions Holdings Inc. (NYSE:CCCS)

Market Capitalization as of September 5: $5.746 billion

Number of Hedge Fund Holders: 10

CCC Intelligent Solutions Holdings Inc. (NYSE:CCCS) was founded in 1980 and is headquartered in Chicago, Illinois. The company offers a SaaS platform with cloud, mobile, AI, telematics, hyperscale technologies, and applications for the property and casualty insurance industry. CCC Intelligent Solutions Holdings Inc. (NYSE:CCCS) specializes in the digitization and simplification of mission-critical AI-enabled workflows.

The company expects Q3 revenue to come in at between $194 million to $196 million. CCC Intelligent Solutions Holdings Inc. (NYSE:CCCS) sees FY 2022 revenue of $773 million to $777 million, versus the previous forecast of $763 million to $771 million. The consensus revenue estimate is $768.29 million.

Piper Sandler analyst Arvind Ramnani on August 8 initiated coverage of CCC Intelligent Solutions Holdings Inc. (NYSE:CCCS) with a Neutral rating and an $11 price target. The analyst likes the business and CCC Intelligent Solutions Holdings Inc. (NYSE:CCCS)’s value proposition, but is waiting for a more attractive entry point into the shares.

According to Insider Monkey’s data, CCC Intelligent Solutions Holdings Inc. (NYSE:CCCS) was part of 10 hedge fund portfolios at the end of Q2 2022, compared to 12 funds in the last quarter. David Zorub’s Parsifal Capital Management is the leading stakeholder of CCC Intelligent Solutions Holdings Inc. (NYSE:CCCS), with 3.18 million shares worth $29.3 million.

In addition to Coupa Software Incorporated (NASDAQ:COUP), Autodesk, Inc. (NASDAQ:ADSK), and DocuSign, Inc. (NASDAQ:DOCU), CCC Intelligent Solutions Holdings Inc. (NYSE:CCCS) is one of the best artificial intelligence stocks to buy now.

11. UiPath Inc. (NYSE:PATH)

Market Capitalization as of September 5: $8.77 billion

Number of Hedge Fund Holders: 24

UiPath Inc. (NYSE:PATH) is a New York-based company offering an end-to-end automation platform specializing in robotic process automation solutions. The platform uses artificial intelligence, combined with desktop recording, back-end mining of human activity and system logs, and intuitive visualization tools. For FY 2023, UiPath Inc. (NYSE:PATH) expects a revenue of about $1.085 billion-$1.09 billion, while ARR will range between $1.22 billion to $1.225 billion. Wall Street consensus estimates for FY23 revenue stand at $1.09 billion.

UiPath Inc. (NYSE:PATH) made it our list of the best AI stocks to buy as it recently announced a strategic acquisition which will improve its market position. On August 1, UiPath Inc. (NYSE:PATH) disclosed the acquisition of the UK-based natural language processing company, Re:infer. The firm’s no-code interface enables corporate users to train their own AI models for higher specificity and flexibility. This will help UiPath Inc. (NYSE:PATH)’s software robots to understand email context and semantics, online chats, and voice sessions to enhance customer service.

On July 7, Canaccord analyst Kingsley Crane initiated coverage of UiPath Inc. (NYSE:PATH) with a Buy rating and a $25 price target. The analyst is bullish on UiPath Inc. (NYSE:PATH)’s ability to employ automation in a wide set of use cases and expects partners, like EY and PwC, to allow it “critical sales leverage”.

According to the second quarter database of Insider Monkey, 24 hedge funds were bullish on UiPath Inc. (NYSE:PATH) with stakes worth $1.27 billion, compared to 33 funds the prior quarter worth $1.30 billion. Cathie Wood’s ARK Investment Management is the leading position holder in the company, with 37.6 million shares worth $641.75 million.

Here is what ClearBridge Investments has to say about UiPath Inc. (NASDAQ:PATH) in its Q2 2021 investor letter:

“We participated in the IPO of UiPath, a developer of software for robotic process automation that uses AI, natural language processing and design to streamline complex processes across a variety of technology environments. The company is an industry leader with a superior solution for leveraging software to optimize workloads. Organizations around the world are beginning to understand the power of automation, with momentum picking up toward fully automating business processes, a $60 billion market today that could grow to $200 billion or more by 2030. UiPath has a unique pricing model, broad partner ecosystem and thoughtful management team supporting one of the strongest growth profiles in technology. Risks we are watching include a partial cloud transition ahead and increased competition from larger software platforms over time.”

10. Palantir Technologies Inc. (NYSE:PLTR)

Market Capitalization as of September 5: $15.275 billion

Number of Hedge Fund Holders: 26

Palantir Technologies Inc. (NYSE:PLTR) is a Colorado-based company that builds AI-enabled software platforms for the intelligence community in the United States for terrorism investigations. While government demand in the near term remains muted, Palantir Technologies Inc. (NYSE:PLTR) is a significant long-term artificial intelligence play as US-China tensions mount. It’s one of the most popular AI stocks and ranks 10th in our list of the best AI stocks to buy.

The Q2 2022 catalysts include the customer count increasing to 304 from 169 year over year, new products such as Edge AI, HyperAuto, OPIs, Cosmos, and Pipeline Builder, and a broader developer community. The 3-year revenue CAGR is 41% and Palantir Technologies Inc. (NYSE:PLTR) has a very large total addressable market, making it one of the best artificial intelligence stocks to buy.

Jefferies analyst Brent Thill on August 8 maintained a Buy rating on Palantir Technologies Inc. (NYSE:PLTR) but lowered the price target on the shares to $12 from $13. While the company lowered the full-year guidance due to slow government spending, the analyst believes Palantir’s Commercial unit “continues to deliver” and that its profitability is improving.

Among the hedge funds tracked by Insider Monkey, Jim Simons’ Renaissance Technologies is the leading stakeholder of Palantir Technologies Inc. (NYSE:PLTR) as of Q2 2022, with 28.20 million shares worth $255.8 million. Overall, 26 hedge funds were long Palantir Technologies Inc. (NYSE:PLTR) at the end of June, compared to 36 funds in the prior quarter.

Here is what Tao Value has to say about Palantir Technologies Inc. (NYSE:PLTR) in its Q4 2021 investor letter:

“We have no new position this quarter and have made below changes to our portfolio. We also sold Palantir (PLTR) as I identified it subject to high retail bubble risk (using above method) and are not part of our core “Mindful Compounder” holdings.”

9. Alteryx, Inc. (NYSE:AYX)

Market Capitalization as of September 5: $4.161 billion

Number of Hedge Fund Holders: 33

Alteryx, Inc. (NYSE:AYX) is a California-based company that provides data analytics and process automation solutions. The Alteryx APA Platform aims to enable organizations to democratize data, automate processes, and enhance analytic capabilities, creating a robust foundation for using artificial intelligence, machine learning, analytics, and related data. Alteryx, Inc. (NYSE:AYX) is part of our best AI stocks to buy since it beat market estimates on revenue and earnings in Q2, and raised its Q3 guidance. The revenue is expected to be in the range of $191 million to $194 million, representing a year-over-year growth of 55% to 57%. The consensus estimate is $173.63 million.

On August 15, Needham analyst Mike Cikos raised the price target on Alteryx, Inc. (NYSE:AYX) to $80 from $68 and reiterated a Buy rating on the shares. The analyst said that the management is focused on the company-specific initiatives for ELAs, Partners, and Cloud. He added that while Alteryx, Inc. (NYSE:AYX) has not been impacted by the macro environment, the company has been cautious in terms of guidance to factor in variables such as pipeline coverage, new business generation, renewal rates, and churn.

Among the hedge funds tracked by Insider Monkey, 33 funds were bullish on Alteryx, Inc. (NYSE:AYX) at the end of Q2 2022, up from 31 funds in the last quarter. Brian Bares’ Bares Capital Management is the leading stakeholder of the company, with 4.3 million shares worth $207.8 million.

In its Q3 2020 investor letter, Alger Small Cap Focus Fund highlighted a few stocks and Alteryx Inc. (NYSE:AYX) was one of them. Here is what the fund said:

“Alteryx is the market leader in analytic process automation, or APA. Through its APA platform, Alteryx unifies analytics, data science and business process automation that democratizes access to data and analytics throughout business organizations. Shares of Alteryx underperformed because the Covid-19 pandemic continued to negatively impact sales cycles for the company, with some customers postponing or downsizing data analytics initiatives. We view these headwinds as transitory and note that Alteryx has quickly adapted its go-to-market strategy to better engage these budget-conscious customers through greater usage of short-term licenses. Longer term, we believe that Covid-19 is a tailwind for Alteryx as companies realize the need for better data and analytic capabilities to adapt to dynamic business environments. In August, Alteryx announced it continued to make progress operationally during the second quarter with partnership with Adobe and UiPath and three new product launches that we believe have increased the company’s potential for generating revenue growth.”

8. EPAM Systems, Inc. (NYSE:EPAM)

Market Capitalization as of September 5: $23.643 billion

Number of Hedge Fund Holders: 36

EPAM Systems, Inc. (NYSE:EPAM) is a Pennsylvania-based company that provides digital platform engineering and software development services, in addition to specializing in artificial intelligence, smart automation, robotics, and virtual reality. EPAM Systems, Inc. (NYSE:EPAM) is one of the best artificial intelligence stocks to buy now as it has a global footprint, serving customers in more than 50 countries. The company, which ranks 8th in our list of the best artificial intelligence stocks to buy, has the ability to scale and sustain robust profitability with 3- and 5-Year non-GAAP EPS CAGR of 27% and 26%, respectively. The company is prioritizing global acquisitions to improve and advance capabilities and geographic expansion.

Barclays analyst Ramsey El-Assal on August 8 raised the price target on EPAM Systems, Inc. (NYSE:EPAM) to $485 from $410 and reaffirmed an Overweight rating on the shares after the Q2 results.

According to Insider Monkey’s data, 36 funds were bullish on EPAM Systems, Inc. (NYSE:EPAM) at the end of June 2022, compared to 38 funds in the last quarter. Stephen Mandel’s Lone Pine Capital is the largest stakeholder of the company, with 1.26 million shares worth $373.4 million.

Here is what Carillon Clarivest Capital Appreciation Fund has to say about EPAM Systems, Inc. (NYSE:EPAM) in its Q1 2022 investor letter:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. EPAM Systems (NYSE:EPAM) offers information technology services. The company struggled amid geopolitical instability given its 14,000 employees in Ukraine and associated operational, relocation, and travel costs. The Fund sold the stock.”

7. DocuSign, Inc. (NASDAQ:DOCU)

Market Capitalization as of September 5: 10.887 billion

Number of Hedge Fund Holders: 37

DocuSign, Inc. (NASDAQ:DOCU), which ranks 7th in our list of the best artificial intelligence stocks to buy, is a California-based software company that provides AI-driven contract lifecycle management. The software employed by DocuSign, Inc. (NASDAQ:DOCU) uses artificial intelligence to search and analyze agreements in terms of legal concepts and clauses.

On September 2, JMP Securities analyst Patrick Walravens reiterated an Outperform rating on DocuSign, Inc. (NASDAQ:DOCU) but lowered the price target on the stock to $84 from $151. The company’s latest filings revealed that June was its worst month for sales attainment. However, the analyst observed some positives in his checks, which included a huge expansion opportunity in a Fortune 500 financial services company.

According to the second quarter database of Insider Monkey, 37 hedge funds were long DocuSign, Inc. (NASDAQ:DOCU), compared to 45 funds in the prior quarter. Ken Fisher’s Fisher Asset Management featured as the leading position holder in the company, with 5.2 million shares worth approximately $299.4 million.

Here is what Cooper Investors Rowan Street Capital has to say about DocuSign, Inc. (NASDAQ:DOCU) in its Q1 2022 investor letter:

“The beauty of the public markets is that if you can be patient, there is a good chance the volatility of the marketplace will give you the chance to own companies on your watch list. The stock prices of our 3 new positions (please refer to charts below) have fluctuated from 100-350% over the past 12 months (when comparing 52-week high by 52-week low). Certainly, the underlying value of a business doesn’t fluctuate that much on an annual basis, so the public markets are a fantastic arena to buy businesses if you can sit still without growing tired of sitting still.

We have been following Docusign (NASDAQ:DOCU) since its IPO in 2018. Its stratospheric valuations over the past few years have kept us admiring this company from the sidelines. We took advantage of the recent drastic drop in stock price to build a core position for the fund.”

6. Verisk Analytics, Inc. (NASDAQ:VRSK)

Market Capitalization as of September 5: $29 billion

Number of Hedge Fund Holders: 38

Verisk Analytics, Inc. (NASDAQ:VRSK), one of the best artificial intelligence stocks to buy, is a New Jersey-based company that provides data analytics solutions via machine learned and artificially intelligent models. The company repurchased common shares worth $325 million during the second quarter of 2022. Verisk Analytics, Inc. (NASDAQ:VRSK) declared on August 2 a $0.31 per share quarterly dividend, in line with previous. The dividend is payable on September 30, to shareholders of record as of September 15.

Baird analyst Jeffrey Meuler on August 4 raised the price target on Verisk Analytics, Inc. (NASDAQ:VRSK) to $220 from $215 and maintained an Outperform rating on the shares. The analyst said they reported a robust Q2 2022 with better-than-expected margin baseline into the expense management initiative.

According to Insider Monkey’s data, Verisk Analytics, Inc. (NASDAQ:VRSK) was part of 38 hedge fund portfolios at the end of Q2 2022, up from 30 funds in the last quarter. Charles Akre’s Akre Capital Management is the largest stakeholder of the company, with 2.4 million shares worth $423 million. This strong hedge fund interest makes VRSK rank among the best AI stocks to buy.

Like Coupa Software Incorporated (NASDAQ:COUP), Autodesk, Inc. (NASDAQ:ADSK), and DocuSign, Inc. (NASDAQ:DOCU), elite hedge funds are piling into Verisk Analytics, Inc. (NASDAQ:VRSK).

Here is what Baron Asset Fund has to say about Verisk Analytics, Inc. (NASDAQ:VRSK) in its Q1 2022 investor letter:

“Outperformance of the Fund’s investments in Communication Services, Financials, and Industrials and lower exposure to the lagging Consumer Discretionary sector added the most value. Strength in Industrials was driven by data and analytics vendor Verisk Analytics, Inc. (NASDAQ:VRSK) Verisk reported solid quarterly earnings results led by ongoing strength in its core Insurance segment. Management also stated its intention to focus on expanding its products to the insurance industry, leading to a likely divestiture of its Financial Services and Energy segments.”

Click to continue reading and see 5 Best AI Stocks To Buy Now.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on October 30, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

Published on September 27, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up