Despite the broader market’s volatility, AI companies continue to innovate and set a foundation for long-term growth. As per Grand View Research, the global artificial intelligence market is set to grow at a CAGR of 37.3% from 2023 to 2030. The market is forecasted to reach $1.8 trillion by 2030. Sectors like healthcare, automotive and financial services will be particularly impacted by AI.
Here are three AI stocks to buy that have significant upside potential. These AI stocks listed below present a valuable chance for investors to capitalize on the growing influence of AI. These firms are not only at the forefront of technological innovation but also present strong growth potential for proactive investors.
CrowdStrike
CrowdStrike (NASDAQ:CRWD) has emerged as a leader in the cybersecurity space. The company is leveraging its innovative Falcon platform to deliver a comprehensive suite of security services. The platform utilizes advanced AI and machine learning algorithms to offer real-time threat detection and automated incident responses.
This Falcon platform is designed to process billions of events per day, with AI models that analyze and correlate data to identify potential threats. The use of AI allows CrowdStrike to offer high-speed, highly accurate threat detection that adapts to new and evolving cyber threats.
CrowdStrike’s financial performance in FY24 was marked by a 36% year-over-year (YOY) increase in subscription revenue, reaching $2.87 billion. The company’s growth was primarily driven by new customer acquisitions and deeper penetration within existing accounts. Furthermore, CrowdStrike’s robust free cash flow margin of 31% in FY24 highlights its operational efficiency and profitability potential.
CrowdStrike’s stock is up 23% in 2024. Wall Street analysts are bullish on the company and have an average price target of $394 on the stock. That translates into a 29.6% potential upside in the near term for this option in AI stocks to buy.
Super Micro Computer
Super Micro Computer (NASDAQ:SMCI) has been making waves in the tech industry, particularly within the realms of artificial intelligence and data centers. Supermicro stands out not just for its remarkable growth but also for its strategic positioning in a critical sector.
SMCI’s stock price has climbed more than 200% in 2024, a testament to its robust business model and market demand. The company has been at the forefront of addressing the insatiable market demand for data center GPUs, a segment that has seen exponential growth due to the rise of AI technologies. To keep up with this demand, Supermicro announced significant expansions, including two new production facilities slated to enhance the production capabilities by 25%.
Furthermore, Super Micro Computer partnerships with leading tech firms like Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDQ:INTC) further solidify its position in the market. These collaborations allow Supermicro to incorporate the latest semiconductor technologies into its products and stay ahead in delivering top-tier performance for AI and computing tasks.
SentinelOne
SentinelOne (NYSE:S) offers cutting-edge cybersecurity solutions powered by artificial intelligence. Its flagship product, the Singularity XDR platform, integrates AI to automate responses and provide real-time data analytics. This capability allows organizations to preemptively counter threats before they can cause significant damage.
The company has demonstrated remarkable growth, with its revenue soaring by 47% YoY in fiscal 2024, reaching $621.2 million. For fiscal year 2025, SentinelOne aims to maintain its growth trajectory while achieving positive free cash flow and operating income by year-end. Moreover, during the earnings call, the CEO discussed the strength of SentinelOne’s AI-powered security platform, Singularity and its recognition by Gartner as a leader in endpoint protection.
Despite these impressive top-line results, the company’s share price has struggled to gain traction, reflecting the market’s broader concerns about profitability and cash flow in the tech sector. However, Wall Street analysts are bullish on the company and have an average price target of $29.55 on the stock. That translates into a 37.2% potential upside in the near term.
On the date of publication, Mohammed Saqib did not hold (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.
Mohammed Saqib is a research analyst with experience in equity research and financial modeling. He has extensively covered stocks listed in the tech sector using fundamental analysis as the cornerstone of his approach. Currently pursuing a master’s degree in finance, Saqib is dedicated to obtaining the CFA charter to augment his expertise in the field further.