Artificial Intelligence (AI) has been a buzzword in the tech industry for several years now, and for good reason. AI is transforming various sectors, from healthcare to transportation, and its potential for growth is immense. As a result, investors are increasingly seeking AI stocks that show strong potential for growth while being undervalued in the current market. In this article, we will delve into two such AI stocks that might be worthy of consideration for your portfolio.
**1. Alphabet Inc. (GOOGL, GOOG)**
One of the largest and most recognizable companies in the tech industry, Alphabet Inc. is the parent company of Google. Although Google is mainly known for its search engine, its AI division Google Brain has been a significant player in the AI field. Google Brain has been involved in various AI projects, including Google Assistant, self-driving cars, and speech recognition.
Currently trading around $1,200 per share, analysts believe that Alphabet’s shares could reach up to $1,800 in the near future. This potential growth is largely due to the potential of Google Cloud, which is expected to compete more effectively with other cloud service providers like Amazon Web Services and Microsoft Azure. Additionally, the growing demand for AI technologies and Google’s strong AI capabilities position the company well for future growth.
[Heading: NVIDIA (NVDA)]
NVIDIA, a leader in graphics processing units (GPUs), has been a key player in the AI sector due to the GPU’s ability to power AI algorithms. The company’s data center revenues, largely driven by its keen focus on AI-related businesses, have been consistently strong. NVIDIA’s growing portfolio of AI solutions, including its DGX SuperPOD and the recently released Jetson AGX Xavier, is expected to drive significant growth in the coming years.
Currently trading around $500 per share, NVIDIA’s stock has underperformed the market this year. However, several analysts believe that the stock is undervalued, especially considering NVIDIA’s dominant position in the AI hardware market and its innovative product pipeline. If NVIDIA can continue to drive growth in the AI sector, its stock could easily surpass its current price.
**Conclusion**
Investing in AI stocks can be a lucrative opportunity, given the rapid growth and transformation that AI is bringing to numerous industries. Alphabet Inc. and NVIDIA are two AI stocks that look undervalued in today’s market due to their strong AI capabilities, innovative product offerings, and growth potential. However, it is essential to conduct thorough research and consult with a financial advisor before making any investment decisions.
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