In this article, we discuss 5 high growth AI stocks to buy. If you want to see more high growth AI stocks to buy, the risk/reward, and methodology of this list, go directly to 10 High Growth AI Stocks to Buy.
5. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization as of 2/16: $541.25 billion
EPS Growth Forecast Next 5 Years: 21.3%
NVIDIA Corporation (NASDAQ:NVDA) is a leading producer of GPUs which is more useful at certain AI processing tasks than conventional semiconductors. As a result, demand for NVIDIA Corporation (NASDAQ:NVDA) could increase if AI demand increases substantially and the company successfully maintains its processing advantage for AI for certain tasks. Analysts expect NVIDIA Corporation (NASDAQ:NVDA) earnings to be $4.33 per share in 2022, $3.27 per share in 2023, $4.29 per share in 2024, and $5.55 per share in 2025.
4. Amazon.com, Inc. (NASDAQ:AMZN)
Market Capitalization as of 2/16: $1.01 trillion
EPS Growth Forecast Next 5 Years: 46%
Amazon.com, Inc. (NASDAQ:AMZN) ranks #4 on our list of 10 High Growth AI Stocks to Buy given its market capitalization of $1.01 trillion. Considering it owns the leading cloud computing business in the world in Amazon Web Services, Amazon.com, Inc. (NASDAQ:AMZN) could potentially benefit from AI growth with more cloud computing demand. By itself, Amazon Web Services is already a very big company with full year 2022 segment sales of $80.1 billion and segment operating income of $22.8 billion.
Analysts see Amazon.com, Inc. (NASDAQ:AMZN) growing EPS considerably over the next 5 years given the company’s low EPS base. Nevertheless the company has substantial long term EPS growth potential if it maintains its cloud computing market share.
3. Alphabet Inc. (NASDAQ:GOOG)
Market Capitalization as of 2/16: $1.22 trillion
EPS Growth Forecast Next 5 Years: 15.51%
Alphabet Inc. (NASDAQ:GOOG) ranks #3 on our list of 10 High Growth AI Stocks to Buy given its market capitalization of $1.22 trillion. In terms of growth, Alphabet Inc. (NASDAQ:GOOG)’s sales could decline or substantially underperform expectations from AI or they could grow depending on how well the company innovates in the future.
Alphabet Inc. (NASDAQ:GOOG) currently owns the most popular search engine in the world in Google which is now facing more competition from the AI-powered Bing. Although the AI Bing makes a lot of mistakes currently, it is expected to improve over time and the improvement could take market share from Google if Alphabet Inc. (NASDAQ:GOOG) doesn’t innovate. AI powered Bing could also increase processing costs for Google which would be a headwind for Alphabet Inc. (NASDAQ:GOOG)’s margins. As a result, the company is arguably the riskiest stock on our list even though it is a blue chip.
Alphabet Inc. (NASDAQ:GOOG) also has AI growth potential given it has invested a lot into AI products such as Waymo that could help grow the company’s bottom line in the long term if it is successful.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization as of 2/16: $1.95 trillion
EPS Growth Forecast Next 5 Years: 11.77%
Microsoft Corporation (NASDAQ:MSFT) benefits from AI in multiple ways. Given it sells enterprise software, the company can incorporate AI into its software to make it potentially more useful for its customers. If its software is more useful, Microsoft Corporation (NASDAQ:MSFT) could potentially realize higher demand. Second, Microsoft Corporation (NASDAQ:MSFT) has a large cloud computing business that could realize more demand from AI processing in the future. Third, the company owns Bing which could gain market share if it successfully incorporates AI even though it is currently error prone. Finally, Microsoft Corporation (NASDAQ:MSFT)’s investment in OpenAI could increase in value if ChatGPT becomes very profitable in the long term.
1. Apple Inc. (NASDAQ:AAPL)
Market Capitalization as of 2/16: $2.43 trillion
EPS Growth Forecast Next 5 Years: 8.13%
Apple Inc. (NASDAQ:AAPL) ranks #1 on our list of 10 High Growth AI Stocks to Buy given its market capitalization of $2.43 trillion. The tech giant has substantial AI growth potential given many iPhone users use Siri daily. If AI technology improves, Siri could improve and iPhones could potentially offer even more value. If iPhones offer substantially more value, Apple Inc. (NASDAQ:AAPL) could potentially sell more iPhones. Apple Inc. (NASDAQ:AAPL) also has AI growth potential given its substantial financial resources which could allow the company to invest in potentially attractive AI companies in the future.
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