Updated 6.7.2023 7:46
With the 2023 AI Boom in Full Swing, Investors Are on the Lookout For High-Quality AI Stocks to Add to Their Portfolio
Today we’ll examine two top AI stocks, which recently received new bullish analyst ratings and price targets, offering investors potential gains of +41.79% and +31.64%, respectively.
The artificial intelligence (AI) sector, which had been growing steadily over the past decade, entered a new phase of rapid growth and unprecedented development, commonly referred to as the AI boom, with the release of OpenAI’s ChatGPT in 2020.
In addition to the surge in interest and development in the AI sector created by the launch of the ChatGPT AI chatbot, the industry is also being driven by a number of other factors, such as:
- Availability of Data: In the internet age, an unprecedented amount of data is available for training AI models. This data can come from various sources such as social media, websites, IoT devices, etc.
- Advancements in Technology: Improvements in computing power, cloud technologies, and the development of advanced machine learning algorithms have made it possible to process and analyze large datasets more effectively.
- Investment and Interest: There’s been an increase in funding and investment in AI from both the public and private sectors. Tech companies are investing heavily in AI research and development, and there’s also increased interest in AI from a wide range of industries.
- Practical Applications: AI technologies have a wide range of practical applications, from autonomous vehicles and healthcare to customer service and marketing. These applications have driven interest in and development of AI.
Source: BNN Bloomberg
2 AI Stocks With Double-Digit Upside
From an investor’s point of view, watching the AI boom unfold will almost certainly see them ask the following question at some point.
What are the top AI stocks to buy?
To help answer that question, we examined the recent activity from top stock market analysts to see which AI stocks they are currently bullish on. After narrowing our search to include recently upgraded stocks with bullish price targets, we came up with the following two AI stocks:
NVIDIA is the pioneer of GPU-accelerated computing. NVIDIA specializes in products and platforms for the large, growing gaming, professional visualization, data center, and automotive markets. The company pioneered accelerated computing to tackle challenges it says no one else can solve. NVIDIA says its work in AI and the metaverse is transforming the world’s largest industries and profoundly impacting society.
While primarily known for its graphics processing units (GPUs), NVIDIA plays a significant role in the AI sector with its GPUs for AI, AI platforms and software, AI research, AI hardware beyond GPUs, and edge AI.
Recent Analyst Activity:
- Analyst: Hans Mosesmann, Rosenblatt Securities
- Rating: Buy
- Price Target: $600
- Implied Upside: +41.79%
Shares of Nvidia closed trading Wednesday at $423.17 per share, down -0.23% on the day. YTD, NVDA stock is up +195.61%.
Advanced Micro Devices is a leader in high-performance and adaptive computing, with the company powering the products and services that help solve the world’s most important challenges. AMD’s technologies advance the future of the data center, embedded, gaming, and PC markets.
Along with being a major provider of CPU and GPU computer processors, including those involved in AI and machine learning (ML), AMD also supports the AI sector with its software for AI, CPUs for data centers, AI collaborations and partnerships and AI-optimized hardware.
Recent Analyst Activity:
- Analyst: Gus Richard, Northland Capital Markets
- Rating: Outperform
- Price Target: $150
- Implied Upside: +31.64%
Shares of AMD last traded at $113.95 per share, down -1.61% on the day. YTD, AMD stock is up +77.99%.
Disclaimer: Wealthy VC does not hold a long or short position in any of the stocks mentioned in this article.