The Unappreciated Powerhouses: Profiling the Top AI Cloud Stocks The Unappreciated Powerhouses: Profiling the Top AI Cloud Stocks

Actionable Trade Ideas

always free

InvestorPlace – Stock Market News, Stock Advice & trading Tips

Cloud AI combines the power of artificial intelligence with the power of cloud computing. That combination offers significant benefits to businesses of all sizes. Those competitive advantages make cloud AI stocks potentially much more valuable.

Better, research firms believe that compound annual growth rates over the next 5 years will approach 40% for cloud AI. Those projections are a strong signal there is much more growth to come. That being said, here are some of the top AI tech stocks to consider.

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

One of the top AI tech stocks to consider is IBM (NYSE:IBM), which many investors believe is an underappreciated AI stock. That was the market perception of the company’s earnings release at the end of January.

Palantir (PLTR)

Palantir Technologies (PLTR) logo seen on billboard, known as Palantir is a public American company that specializes in big data analytics.

Source: Poetra.RH / Shutterstock.com

Palantir (NYSE:PLTR) just recorded its fifth consecutive quarter of GAAP profitability. Palantir is arguably known more for its public side business than its commercial business. While government revenues continue to make up the majority of the company’s business, its commercial side is quickly closing the gap. Palantir’s government revenues reached $324 million in Q4, growing by 11%. Commercial revenues weren’t far behind – at $284 million – and grew by 32%.

Alibaba (BABA)

The Alibaba (BABA) logo featured outside of an office building with bushes in the background

Source: zhu difeng / Shutterstock.com

Now is the time for bottom fishers to consider Alibaba (NYSE:BABA), another one of the top AI tech stocks to own.

Amazon (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock

Source: Tada Images / Shutterstock.com

Amazon (NASDAQ:AMZN) is the leader in the cloud space thanks to its dominant Amazon web services (AWS). However, when it comes to cloud AI, Amazon continues to be a step behind its competition. However, analysts believe that Amazon is roughly six months behind its competitors.

Alphabet (GOOG, GOOGL)

Alphabet Inc. (GOOG, GOOGL) and Google logos seen displayed on smartphones. The Google stock split is happening today.

Source: IgorGolovniov / Shutterstock.com

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) released its Bard AI chatbot shortly after Microsoft released its chatbot. Better, the company continues to invest heavily into AI to improve search, YouTube, and Cloud. Plus, the company continues to grow, as seen with its double-digit growth on a top-line basis in Q4.

Cisco (CSCO)

the cisco (CSCO) logo on a wall

Source: Valeriya Zankovych / Shutterstock.com

Cisco (NASDAQ:CSCO) will continue to be one of the better stocks to invest in for those concerned with security and stability.

Microsoft (MSFT)

Microsoft logo close up. Microsoft (MSFT) Flagship Store Fifth Avenue, Manhattan, NYC.

Source: The Art of Pics / Shutterstock.com

Microsoft (NASDAQ:MSFT) has taken advantage of the emergence of artificial intelligence as much as any other firm. The company continues to invest heavily in the application of AI to its Azure Cloud business.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

More From InvestorPlace

The post The Best 7 Tech Stocks to Buy for AI Cloud Exposure appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.