Artificial Intelligence (AI) is becoming increasingly prevalent as the range of AI applications continues to expand. Analysts are optimistic about the growth potential of AI stocks, even though they have already shown impressive returns. Despite this success, much of the monetization potential of AI has yet to be fully realized.
A recent report from Bloomberg Intelligence suggests that Generative AI alone could become a $1.3 trillion business within the next decade, with a projected compound annual growth rate (CAGR) of 42%. Demand for applications such as large language models, digital ads, and specialized software services is expected to drive explosive growth in the medium to long term.
Many software companies may not see immediate profits from their AI investments, but these investments are driving demand in related industries such as chipmakers, semiconductor manufacturers, and data center infrastructure providers. This indicates that there are numerous AI stocks with significant growth potential, including some that are currently undervalued.
One such AI growth stock to consider is Intel (INTC), a company that is actively pursuing opportunities in the AI market. Despite facing challenges in the past, Intel has regained momentum with rising market share in the server CPU segment. The company recently launched a new line of processors targeting the AI sector, positioning itself as a competitor to industry leaders like Nvidia and AMD. Analysts are increasingly positive about Intel’s prospects, with a majority rating the stock as a buy and forecasting significant upside potential.
Another AI growth stock worth considering is Riot Platforms (RIOT), a Bitcoin mining company that has leveraged its computing resources to explore new revenue streams in the AI sector. The company is in the process of acquiring Bitfarms to expand its infrastructure and achieve greater economies of scale. Analysts unanimously recommend RIOT stock as a buy, citing substantial upside potential.
Lastly, Opera (OPRA), a popular web browser, is also positioning itself for growth through AI integration. The company has made significant investments in AI capabilities and has seen positive results in terms of user engagement and revenue. Analysts are optimistic about Opera’s potential for growth, with an average price target representing a significant upside from current levels.
In conclusion, the potential of AI applications is vast and continues to grow. Investing in AI growth stocks like Intel, Riot Platforms, and Opera could offer investors the opportunity to capitalize on this evolving market trend.