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artificial intelligence (A.I.) industry has attracted investors. Companies are rushing to incorporate this technology into their operations to increase efficiency and profitability. AI is his big buzzword for 2023, and that momentum continues into his 2024.
Many AI-related stocks continue to rise. This sector attracts a lot of speculation and there is a risk of losing capital. But some AI stocks are real and look poised to deliver long-term returns to shareholders.
It's never too late to invest in the best AI stocks to buy. These are some of the stocks you'll want to monitor.
Crowd Strike (CRWD)
cloud strike (NASDAQ:CRWD) is a cybersecurity company that continues to grow at a time when most of its competitors are falling behind. The company has a good recurring revenue model, with 34% year-over-year (YoY) growth in Q4FY24. Annual recurring revenue now stands at $3.44 billion.
Cybersecurity is a lucrative industry as businesses need safeguards to protect their data and sensitive documents from hackers. Cybercriminals are getting smarter, and some are using AI to launch further cyberattacks. Cybersecurity companies are strengthening their defenses by offering AI tools.
CrowdStrike recently announced Charlotte AI, which helps cybersecurity teams streamline their work and detect threats faster. Customer research reveals that using the company's generative AI solutions, the average person can save two hours per day on her. Charlotte AI is built by defenders, for defenders, and he is one of the driving forces behind CrowdStrike's profits. The stock has increased 397% over the past five years.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) is incorporating AI into many of its products and services. The company uses his AI to recommend relevant products to people browsing online marketplaces. Amazon Web Services uses AI to give customers more choice. AWS enables customers to build better AI applications that generate more leads and save time.
AI requires more computing power. While advanced chips drive the hardware, cloud computing is a software component. The cloud computing industry is growing as more companies adopt AI. Cloud platforms have the flexibility to process and store additional data.
Amazon continues to report strong financials. The company's fourth-quarter 2023 sales hit a record $170 billion, and its profit margins have expanded recently. Sales increased 14%, with double-digit sales growth across most of Amazon's key segments. North American sales increased 13% year-over-year, and international sales increased 17% year-over-year. Amazon Web Services' revenue increased 13% year over year.
Synopsis (SNPS)
synopsis (NASDAQ:SNPS) is a chipmaker riding on the tailwinds of AI. The company's stock doesn't rely on AI, and it reported solid financials long before the technology became mainstream. Synopsys stock has increased 395% over the past five years and is up 13% since the beginning of the year.
The company's P/E ratio is 63 times, and its profit margin has expanded significantly, suggesting further upside. The company saw both sales and profits surge in the first quarter of fiscal 2024, delivering a 27% net profit margin. Sales increased 21% year over year and net income increased 65% year over year. Synopsys also beat the high end of guidance for quarterly GAAP EPS.
Synopsys is making acquisitions ansis (NASDAQ:Answer), which will lead to further market share. The semiconductor company has achieved healthy financial growth while building meaningful runway. AI tailwinds could push stock prices higher, benefiting long-term investors.
On the date of publication, Mark Guberti held long positions in AMZN and SNPS. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publication guidelines.