Three promising AI stocks currently recommended for growth investors include Alphabet (NASDAQ: GOOG, GOOGL), Alibaba Group Holdings (NYSE: BABA), and Advanced Micro Devices (NASDAQ: AMD). Alphabet has seen its shares decline by approximately 11% this year amidst antitrust concerns, despite reporting a revenue of $90.2 billion in Q1 2023, a 12% year-over-year increase. The company plans to invest $75 billion in capital expenditures this year.
Alibaba trades at 15 times its trailing earnings and reported a revenue of $32.6 billion in Q1 2023, with AI-related revenue growing at triple digits for the seventh consecutive quarter. Advanced Micro Devices posted a revenue increase of 36% for the period ending March 29, totaling $7.4 billion. Currently, AMD has a price-to-earnings multiple of 80, but its price/earnings-to-growth ratio stands below 0.6, indicating strong growth potential.
