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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)
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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)
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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)
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Now is the time for bottom fishers to consider Alibaba (NYSE:BABA), another one of the top AI tech stocks to own.
Amazon (AMZN)
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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)
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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)
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Cisco (NASDAQ:CSCO) will continue to be one of the better stocks to invest in for those concerned with security and stability.
Microsoft (MSFT)
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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.
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