3 Artificial Intelligence Stocks to Buy Like There's No Tomorrow

Core Viewpoint - Artificial Intelligence (AI) is positioned as a transformative technology with significant long-term investment potential, contingent on making informed investment choices Group 1: Nvidia - Nvidia is identified as a leading player in AI infrastructure, benefiting from increased spending on graphic processing units (GPUs) essential for AI model training and inference [2][4] - Major tech companies, including Microsoft, Amazon, Alphabet, and Meta Platforms, are significantly investing in AI infrastructure, with Microsoft planning to spend approximately $80 billion, Amazon$100 billion, Alphabet $75 billion, and Meta up to$65 billion by 2025 [3] - Nvidia holds a dominant 90% market share in the mass-merchant GPU market, supported by its CUDA software platform, which is superior to competitors [4] - The stock is considered attractively valued, trading at a forward P/E ratio of 25 times 2025 estimates and a PEG of 0.5, indicating potential undervaluation [5] Group 2: Alphabet - Alphabet's Google Cloud is a key player in the AI space, with Q4 revenue increasing by 30% to $12 billion and operating income surging 142$2.1 billion [7] - The company is expanding capital expenditures to address capacity constraints and has developed custom AI chips (TPUs) to enhance cost efficiency and performance [8] - Alphabet's Gemini 2.0 AI model is now publicly available, enhancing its search capabilities and potentially driving future ad revenue growth [9] - The stock is trading at a forward P/E of 18 times, indicating it is relatively inexpensive [10] Group 3: Salesforce - Salesforce is focusing on agentic AI, which allows AI agents to perform tasks autonomously, enhancing the capabilities of generative AI [11] - The company launched its Agentforce solution, which offers customizable AI agents for various tasks, and has seen strong demand with over 1,000 deals in place shortly after launch [12][13] - The consumption-based pricing model for Agentforce is set at $2 per conversation, presenting a scalable revenue opportunity [13] - Salesforce's stock is trading at a forward P/E of under 26 times with a PEG below 0.6, reflecting an attractive valuation given its growth potential [14]