3 Top Artificial Intelligence (AI) Stocks to Buy Hand Over Fist in April

Apr 1, 2024 6:15 pm | News

Is the hype justified? That’s a question investors must ask often when the next new thing fuels frenzied buying and pushes select stocks to all-time highs.

We’re seeing this play out in front of our eyes right now with artificial intelligence (AI). In some cases, hype about the AI potential for some companies has gone beyond reasonable levels. But that isn’t true across the board. Here are three top AI stocks to buy hand over fist in April.

1. Alphabet

Could Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) be an AI underdog? I think so. Some investors have focused mainly on the tech giant’s stumbles, including the recent debacle with Google Gemini creating inaccurate historical images. However, the larger AI story for Alphabet is a good one.

There’s a reason why Apple is reportedly in talks with Alphabet to use Gemini in iPhones: The AI model is tremendously powerful despite the public relations missteps. More importantly, the current version is just the beginning.

I suspect there could be a side benefit for Alphabet from an Apple deal also. Such a high-profile endorsement of Gemini would likely make it easier for Google Cloud to attract new customers. The cloud platform is tightly integrated with Gemini.

Meanwhile, another major AI focus for Alphabet arguably isn’t getting the attention it deserves. Self-driving car unit Waymo already operates autonomous ride-hailing (robotaxi) services in San Francisco and Phoenix with Los Angeles and Austin on deck. Cathie Wood’s Ark Invest predicts the robotaxi market could top $10 trillion by early next decade. Waymo is poised to capture a big chunk of this market.

2. Meta Platforms

It wasn’t that long ago Meta Platforms (NASDAQ: META) was viewed as a has-been by many investors. I doubt anyone has this perspective now. Meta stock has skyrocketed almost 140% over the last 12 months.

CEO Mark Zuckerberg revealed just how ambitious Meta’s AI strategy is in its fourth-quarter earnings call last month. He stated that Meta is actively working on “full general intelligence” — more widely known as artificial general intelligence (AGI). If those efforts succeed, it would be a game-changer for the company.

But Meta doesn’t need AGI to be a huge winner in the AI arena. The company is already using AI to increase the monetization of its social media platform. It has great expectations for AI-powered business messaging. With hundreds of millions of people interacting with its AI systems, Meta can get immediate feedback and rapidly improve its technology.

Speaking of that huge audience, nearly 3.2 billion people worldwide used Meta’s apps daily in the fourth quarter of 2023. Advertising revenue is growing while expenses as a percentage of revenue are declining. That translates to increasing profitability — and more money to invest in future growth.

3. UiPath

If you’re looking for an AI stock that isn’t as well-known, I think UiPath (NYSE: PATH) is a great pick. This company is part of what Ark Invest calls “AI’s sleeper wave.”

UiPath markets the leading robotic process automation (RPA) platform. Its technology uses AI to automate nearly any digital task. Over 15,000 robots developed by UiPath are in production across the world. The company’s newest product, Autopilot, enables users to automate processes using generative AI.

This is a business clearly on the upswing. In Q4, UiPath generated record revenue of $405 million, up 31% year over year. It posted record cash flow. The company was also profitable for the first time.

A recent study found that 70% of corporate executives believe that AI-driven automation is “very important or critical” to achieve their strategic objectives. Look for UiPath to continue delivering strong growth.

Should you invest $1,000 in Alphabet right now?

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Alphabet, Apple, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, and UiPath. The Motley Fool has a disclosure policy.

3 Top Artificial Intelligence (AI) Stocks to Buy Hand Over Fist in April was originally published by The Motley Fool

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