The artificial intelligence sector represents companies developing and implementing AI technologies across various industries. These firms range from tech giants to specialized startups focused on machine learning and automation. AI stocks provide investment opportunities in companies reshaping how businesses operate and decisions are made. The sector has gained significant attention due to AI’s potential to transform industries from healthcare to transportation.
Investing in AI stocks can offer exposure to one of technology’s fastest-growing segments. Many AI companies are at the forefront of innovations in data analytics and automation. Some established AI firms have strong partnerships with major corporations, providing stable revenue streams. However, the sector comes with notable risks. Many AI companies are still in development stages and not yet profitable. Competition is intense, with both established tech companies and new startups vying for market share. Regulatory concerns and ethical considerations could impact AI development and adoption.
When evaluating AI stocks, consider the company’s practical applications and market readiness. Look at their intellectual property portfolio and research development capabilities. Assess their ability to commercialize AI solutions effectively. Be aware that many AI stocks trade at premium valuations reflecting high growth expectations. Consider the company’s competitive advantages in specific AI applications. With this on top of mind, let’s look at two AI stocks to watch in the stock market today.
AI Stocks To Invest In [Or Avoid] Today
- Palantir Technologies Inc. (NYSE: PLTR)
- Salesforce Inc. (NYSE: CRM)
Palantir Technologies (PLTR Stock)
First, Palantir Technologies Inc. (PLTR) is a software company that specializes in big data analytics and artificial intelligence platforms. They develop solutions for complex data analysis, particularly for government agencies, defense departments, and large corporations. Palantir’s platforms help organizations integrate, visualize, and analyze large amounts of data to make better decisions. The company offers both government-focused (Gotham) and commercial (Foundry) platforms.
Just this week, Palantir announced better-than-expected third-quarter 2024 financial results. In detail, the company notched in earnings of $0.10 per share, with revenue of $725.52 million. This is compared to Wall Street’s estimates for the quarter which were earnings per share of $0.09, and revenue estimates of $705.10 million for Q3 2024. In addition, the company also said it expects Q4 2024 revenue to come in between $767.0 million to $771.0 million.
Year-to-date, shares of PLTR stock are up a whopping 203.26%. Meanwhile, during Tuesday morning’s trading session, Palantir stock is trading higher up 21.38% on the day, currently trading at $50.33 a share.
[Read More] 2 Tech Stocks To Watch In November 2024
Salesforce (CRM Stock)
Salesforce Inc. is a global leader in customer relationship management (CRM) software and cloud-based enterprise solutions. They provide a comprehensive suite of applications for sales, service, marketing, and business analytics through their cloud platform. The company focuses on helping businesses digitally transform their operations and better connect with their customers.
At the end of last month, Salesforce announced the general availability of Agentforce, a new AI platform layer for building autonomous business agents. The platform enables companies to create AI agents that can independently handle tasks across sales, service, marketing, and commerce functions. Salesforce reported that companies like OpenTable, Saks, and Wiley are already using Agentforce to enhance their operations. The platform includes pre-built agents that can be customized using low-code or no-code tools. Agentforce Service Agent, the first generally available pre-built agent, is designed to handle customer support tasks.
So far this year, shares of Salesforce stock have moved higher, up 15.68% year-to-date. Moreover, during Tuesday’s mid-morning trading session, CRM stock is trading slightly red by 0.57%, currently trading at $296.30 a share.
