2 Best Artificial Intelligence Stocks to Buy in October

AI Market Growth and Investment Opportunities - The AI market has created significant growth stocks, with companies enabling this technological revolution still seeing growing opportunities [1] - Two AI leaders, C3ai and Nvidia, are highlighted as potentially profitable investments over the next year and beyond [1] C3ai Overview - C3ai has reported accelerating revenue increases for six consecutive quarters, indicating potential for excellent returns [2] - The company closed 71 agreements in the latest fiscal quarter, including deals with GSK, Dolce & Gabbana, and the US Department of Defense [2] - C3ai is expanding its footprint across state and local governments, with 25 agreements in states like Texas, California, and Florida [2] - Customers are experiencing cost savings using generative AI, which could solidify long-term relationships [2] C3ai Financial Performance - Despite strong revenue growth, C3ai's stock has declined due to weak profitability, with a projected full-year adjusted loss between $95 million and $125 million [3] - Revenue guidance for the year is between $370 million and $395 million [3] - The company's net loss is improving year over year, and profitability is expected as the business grows [3] - If investors credit the company for strong revenue growth, the stock price could rise significantly [3] Nvidia Overview - Nvidia is a pure-play investment in the growing demand for AI-optimized computing hardware [4] - The company is benefiting from data centers upgrading components for AI workloads [4] - Nvidia's CEO highlighted the difficulty in modeling AI demand trends, with unexpected interest from law firms and medical diagnostic companies [4] Nvidia Market Position and Financials - Nvidia generated $26 billion in data center revenue last quarter, with nearly half coming from cloud service providers [4] - Strong demand is also seen from AI startups building generative AI applications for various industries [4] - Nvidia is the largest supplier of GPUs, with 47 million developers using its CUDA computing platform [5] - The stock is trading at a forward P/E ratio of 34, with expected annualized earnings growth of 36% [5] - Nvidia controls over 70% of the AI chip market, with expanding opportunities in data center networking hardware and software [6] Nvidia Long-Term Outlook - The demand for AI technology in data centers is expected to grow over the next decade, benefiting Nvidia [6] - Despite potential pauses in demand, long-term investors could see market-beating returns [5]