The 3 best growth stocks in the artificial intelligence space

There is a lot of hype today about artificial intelligence or AI and how it is invading our lives. Created by machine learning, it’s all about training a system with plenty of data to make inferences about any new data. AI has been around for a few years, but as of early 2023 it seems to be everywhere. With the growing need for advanced technology, AI has already become a major driver in every industry, from robotics to big data to the Internet of Things. It has started to transform the field of software development and will be huge this year. However, the market is still in the early stages of adopting AI, and savvy investors know the potential lies in AI growth stocks.

There are many AI stocks out there, but few have the potential to make it big. If you’re looking to unlock the future of AI, consider pure AI stocks for your portfolio. Growing interest and a surge in investment in AI make it an ideal time to take your position. Let’s take a look at the top AI growth stocks to add to your portfolio:

Microsoft (MSFT)

Source: Asif Islam /

One of the first companies that comes to mind when we think of the best AI growth stocks is Microsoft (NASDAQ:MSFT). Already a solid player in the industry, Microsoft has been in the news recently for increasing its stake in OpenAI, the creator of ChatGPT. The revolutionary tool has shown how far AI can go and how capable it is of generating images, text, ideas and sounds. This year, Microsoft made an investment of $10 billion, a significant increase from the previous $1 billion investment in 2019.

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Microsoft recently added “AI-Generated Stories” to its Bing search engine to give users a better insight into AI. MSFT shares are trading at $280, up 18% over the last six months, and nearing a 52-week high of $315, making it one of the best artificial intelligence stocks to own today . AI justifies its higher valuation and I believe the company’s investments will pay off in the short term.

Microsoft CEO Satya Nadella sees AI as the next big computing platform, and this investment is just the first step in the company’s AI transformation. Aside from this investment, the company is harnessing the power of AI in a variety of ways, including clinical documentation and healthcare.

This month, Microsoft also introduced Dynamics 365 Copilot, a tool designed to support the day-to-day tasks of many businesses, including marketing, sales, and customer service. The technology is still being tested, but if successful could transform the current automated chat experience. Microsoft is a proven performer regardless of the state of the tech industry, making it a stock to buy and hold.


Source: Michael Vi /

Another artificial intelligence stock to watch out for is Nvidia (NYSE:Nvidia). As a leader in the graphics chip industry, it’s making the most of the AI ​​boom and could become one of the biggest players in the world. Its data center segment has shown a steadily increasing share of the company’s total revenue and managed to outperform the gaming segment in revenue over the past year. Despite the decline in tech stocks and market turmoil, NVDA stock has remained strong as AI has been one of the drivers behind its growth.

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The stock currently trades at $265 and is up more than 100% in the last six months. Nvidia recently launched a number of inference platforms designed for generative AI, and their chips are already popular for handling large workloads. As there are applications required to run AI apps, Nvidia should remain in demand and relevant for years to come.

In the coming years, Nvidia intends to add another revenue stream to processors for self-driving cars. As cars with self-driving capabilities collect large amounts of data from cameras and sensors in real time, AI will then be used to make complex decisions – something Nvidia plans to contribute to in the coming years. NVDA stock isn’t cheap, currently trading at 24.8 times sales, but the upside potential is huge.

Alphabet (GOOG, GOOGL)

Source: Igor Golovniov /

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), the parent company of Google, is another top artificial intelligence stock to buy for long-term growth. The company recently acquired Alter, an AI avatar startup that enables creators and brands to express their virtual identities, for $100 million. To gain an advantage in the AI ​​sector, companies must continually invest, and Alphabet has the liquidity to do so. It also has the experience and resources to make a name for itself in the AI ​​industry.

The recent history of the company is not without setbacks. Between Microsoft’s partnership with OpenAI and their ChatGPT tool, and the relatively unsuccessful launch of Google’s own AI-powered service Bard, GOOG stock has suffered setbacks in recent months. However, the company has many years of experience in deep learning and can help with a smooth transition to AI.

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GOOGL stocks are currently listed for sale which is another reason to buy. The stock is trading at $105 today and is down 25% over the past year. Given its history and growth potential, it is favorable for the technology sector.

At the time of publication, Vandita Jadeja held (neither directly nor indirectly) positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to’s publicity guidelines.

Vandita Jadeja is a CPA and freelance financial copywriter who loves reading and writing about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.