The artificial intelligence (AI) sector is a dynamic area of the stock market, focusing on companies developing intelligent machines. These firms range from tech giants to specialized startups working on various AI applications. AI stocks represent ownership in companies heavily invested in or utilizing AI technologies. The sector has gained significant attention due to AI’s potential to revolutionize industries and enhance productivity.
Investing in AI stocks can offer substantial growth opportunities as AI adoption increases across sectors. Many AI companies are at the forefront of technological innovation, potentially leading to breakthrough products or services. The sector may benefit from increased corporate and government spending on AI technologies. However, AI stocks also come with risks. The technology is still evolving, and success is not guaranteed. Many AI companies are not yet profitable, focusing on research and development. Competition in the AI space is intense, with rapid technological changes.
When considering AI stocks, it’s crucial to evaluate a company’s AI capabilities and practical applications. Assess their competitive position and potential market demand for their AI solutions. Look at the company’s financial health and ability to fund ongoing AI development. Be aware that AI stocks often trade at high valuations, reflecting optimistic growth expectations. Consider the regulatory landscape and potential ethical concerns surrounding AI technologies. Having said that, let’s look at two AI stocks to check out in the stock market today.
AI Stocks To Buy [Or Sell] Now
- NVIDIA Corporation (NASDAQ: NVDA)
- Alphabet Inc. (NASDAQ: GOOGL)
NVIDIA Corp. (NVDA Stock)
To lead off, NVIDIA Corporation (NVDA) is a technology company known for designing and manufacturing graphics processing units (GPUs). Initially focused on computer gaming, NVIDIA has expanded into areas like artificial intelligence, data centers, and autonomous vehicles. Their GPUs are widely used in high-performance computing, machine learning, and scientific research.
Last month, NVIDIA announced its second quarter 2025 financial and operating results. In detail, the tech giant reported earnings of $0.70 per share, versus earning estimates of $0.65 per share. Additionally, the company posted Q2 2025 revenue of $30.04 billion compared to consensus revenue estimates of $28.24 billion. Moreover, revenue increased by 122.40% compared to the same period, the previous year.
Looking at the last month of trading, shares of NVDA stock have advanced by 2.58%. Meanwhile, ahead of Friday’s opening bell, NVIDIA stock is trading at around $118.91 a share.
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Alphabet (GOOGL Stock)
Up next, Alphabet Inc. (GOOGL) is a multinational technology conglomerate and the parent company of Google. They operate a diverse portfolio of internet-related services and products, including the world’s most popular search engine. Alphabet’s activities span areas such as online advertising, cloud computing, artificial intelligence, software, and hardware development.
In July, Alphabet announced its second quarter of 2024 financial results. Getting into it, the company reported Q2 2024 earnings per share of $1.89 and revenue of $84.74 billion. This is in comparison with analyst estimates for the quarter which were an EPS of $1.85 per share, and revenue estimates of $84.20 billion. In addition, revenue increased by 13.59% on a year-over-year time frame.
In the last month of trading, Alphabet stock has pulled back by 5.77%. While, during Friday’s premarket trading session, shares of GOOGL stock are trading modestly higher ahead of the open by 0.78% at $155.90 a share.
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