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The Rise and Shine of 3 Top AI Stocks You Must Track in Q2

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strong buy ai stocks - 3 Strong Buy AI Stocks to Add to Your Q2 Must-Watch List

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As the tide of artificial intelligence (AI) stocks continue to rise, market players are hungrily eyeing firms poised to reap benefits from this technological revolution. The entry fee to this exclusive club has undeniably surged, hinting at the flourishing demand for AI innovation.

Despite the uncertainty surrounding the longevity of the ongoing AI frenzy, the prospect of a pullback looms large, creating opportunities for savvy investors to snap up stocks on the dip. In this whirling sea of possibilities, overlooked gems beckon investors to explore their promising potential. In the upcoming quarter, a surge in AI adoption may serve as a catalyst for these companies, fueling growth and innovation across the board. The allure of AI as a high-growth frontier persists, casting a warm glow on the American market landscape.

Highlighted below are three AI contenders that merit a spot on your radar this quarter. Backed by strong buy ratings from seasoned Wall Street analysts, these stocks boast promising trajectories amidst the AI upheaval.

IBM (IBM)

Photo of IBM (IBM) building as seen through the canopy of a tree. IBM logo is in large letters on side of building.

Source: shutterstock.com/LCV

After trailing the market for a significant period, IBM (NYSE:IBM) has emerged as a leading performer in recent times. Surging past the S&P 500 this year, IBM’s stock soared by an impressive 17% by the first quarter’s close in 2024.

Propelled by significant AI advantages as the new quarter unfolds, IBM’s stock appears as a compelling watch, particularly with its watsonx platform. Despite the bullish run-up, IBM’s shares remain attractively priced at just 23.4 times trailing price-to-earnings (P/E), a modest valuation by all counts. Furthermore, the stock’s 3.48% dividend yield presents a tantalizing proposition, painting IBM as an AI jewel worth exploring.

With a transformative modernization underway, IBM seems poised to establish itself as a heavyweight in the enterprise AI realm, a strategic move that has been long overdue. Finally, after much anticipation, Watson is stepping up to fulfill its potential!

Oracle (ORCL)

The Oracle (ORCL) sign hangs on an Oracle office in Deerfield, Illinois.

Source: Jonathan Weiss / Shutterstock.com

Oracle (NYSE:ORCL) experienced its own surge in AI-driven growth around mid-2023. Following a plateau in share price since last June, the latest earnings report reignited investor interest in the company. Priced at 33 times trailing P/E, Oracle remains positioned for further growth, offering a relatively affordable entry point compared to its competitors.

With generative AI seamlessly integrated into its operations, Oracle stands out as a potent force in the enterprise AI landscape. Notably, OCI Generative AI emerges as a cutting-edge service, harnessing sophisticated AI models from industry leaders like Cohere.

As the year progresses, Oracle shows no signs of deceleration, poised to maintain its momentum and drive AI innovation across enterprises. Analysts aplenty favor this stock, foreseeing a bright future for Oracle in the AI domain.

Dell (DELL)



The Rise of Dell: A Hidden Gem Shining in the AI Spotlight

The Rise of Dell: A Hidden Gem Shining in the AI Spotlight

Unveiling a Tech Marvel

Dell (NYSE: DELL) quietly navigated the tech landscape until a recent quarter brought it into the AI limelight. Despite a remarkable 51% surge in share value this year, Dell remains attractively priced with a modest 26.2 trailing P/E ratio. Just like Oracle, Dell appears to be the underappreciated hero of the AI realm, finally earning recognition from investors and analysts alike.

The Surprising Shockwave

Approaching the year’s conclusion, Dell’s leadership is poised to steer the company towards meeting the lofty expectations surrounding its AI ventures. Dell’s recent foray into AI didn’t just surprise the market – it sent shockwaves through it. Anticipate significant volatility in Dell’s stock as investors search for a fitting valuation that acknowledges its AI capabilities.

The Path Ahead

If Dell continues to excel in forthcoming quarters, it may well justify a higher valuation multiple. The market eagerly awaits Dell’s next moves, signaling a potential shift in how its AI prowess is perceived and valued.

On the date of publication, Joey Frenette held no positions in the securities mentioned. The views expressed in this article are solely those of the author and comply with the InvestorPlace.com Publishing Guidelines.

Joey Frenette is an experienced investment writer with a focus on technology and consumer stocks. With contributions to reputable platforms like Motley Fool Canada, TipRanks, and Barchart, Joey specializes in identifying undervalued stocks with promising long-term growth prospects in a dynamic market.


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