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No Nvidia stock in your portfolio? 2 AI stocks to buy instead

No Nvidia stock in your portfolio? 2 AI stocks to buy instead
Elmaz Sabovic

Investors are enthusiastic about artificial intelligence (AI) stocks, with Nvidia (NASDAQ: NVDA) being one of the top stocks benefiting from this trend. Nvidia’s AI chips are crucial to developing AI technology, which largely explains the excitement surrounding the company.

However, investing in Nvidia now poses a challenge due to its enormous size and high valuation. With a price-to-sales (P/S) ratio of 39 and a market cap of $3.1 trillion, it’s reasonable to question whether Nvidia can sustain its growth rate.

Luckily, investors have alternatives, as other AI stocks are available at lower prices and with smaller market caps.

Advanced Micro Devices (NASDAQ: AMD)

Advanced Micro Devices (NASDAQ: AMD) has been a surprising performer in the AI stock market. A decade ago, the company was on the brink of bankruptcy but made a remarkable recovery under CEO Lisa Su, excelling in the GPU and gaming markets by becoming the chip provider for Microsoft’s (NASDAQ: MSFT) Xbox and Sony’s (NYSE: SONY) PlayStation.

The rise of AI has further propelled AMD’s success. In the latest quarter, AMD’s AI chip offerings led to an 80% year-over-year revenue increase in its data center segment. Although AMD’s AI technology lags behind Nvidia’s, high demand and supply issues with Nvidia’s chips, along with lower prices for AMD’s chips, have boosted AMD’s sales.

AMD stock has managed to achieve a 51% annual growth rate and a smaller 24% year-to-date increase.

AMD stock 1-year price increase. Source: Finbold
AMD stock 1-year price increase. Source: Finbold

This increase in AI-related sales has helped AMD offset slowing gaming and embedded segment sales. In the first quarter of 2024, AMD’s overall revenue was $5.5 billion, a 2% year-over-year increase. Data center revenue comprised 43% of the total, similar to Nvidia’s revenue distribution in fiscal 2022.

While it’s uncertain if AMD’s data center segment will grow to match Nvidia’s, following a similar path could lead to significant revenue growth, potentially prompting investors to overlook AMD’s price-to-sales ratio of 11 and invest more in its stock.

UiPath (NYSE: PATH)

UiPath (NYSE: PATH) is a leader in robotic process automation (RPA). It specializes in software robots that handle repetitive tasks. Despite having a relatively modest market cap of $6.8 billion, UiPath stands out due to its extensive developer community of 2.5 million members. This large ecosystem makes it difficult for users to switch to other RPA products.

According to Fortune Business Insights, the RPA market is projected to grow at a 20% compound annual growth rate through 2030. However, UiPath faces significant challenges, as its stock recorded a 44.37% loss year-to-date.

PATH stock YTD price chart. Source: Finbold
PATH stock YTD price chart. Source: Finbold

CEO Rob Enslin, who served as co-CEO for two years and as sole CEO since January, has suddenly resigned. Co-founder Daniel Dines has resumed leadership, but long-term uncertainties remain about the company’s top management.

Financially, UiPath’s performance has been modest. For the first quarter of 2025, which ended April 30, the company reported $335 million in revenue, a 16% increase year-over-year. 

However, it also posted a net loss of $29 million, not much better than the $32 million loss from the previous year. The losses are mainly due to $89 million in stock-based compensation, a noncash expense, indicating that the company is covering its operational costs.

With a P/S ratio of 5, near all-time lows, UiPath offers a potentially attractive investment opportunity for those willing to navigate some short-term uncertainty.

These two stock pickings represent potential big winners in the future as AI and robotic branches of technology rapidly develop.

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