Artificial intelligence (AI) is one of the fastest-growing technologies, and its influence is only set to increase with the industry expected to be worth $1 trillion in the next five years.
From autonomous vehicles to virtual assistants, AI has already transformed various industries, and it’s expected to continue doing so in the future.
As such, investing in AI stocks can be a smart move for those looking to diversify their portfolio. Thus, Finbold has compiled a list of the top 4 AI stocks to buy in May based on the companies’ financial performance, growth potential, and overall market outlook.
Google (NASDAQ: GOOG)
Google (NASDAQ: GOOG) is one of the most sought-after stocks among investors. The tech giant’s shares rose 2% on Monday after reports revealed the company is set to announce new major generative AI updates at the forthcoming annual developer conference on May 10, including a new large language model (LLM).
At press time, Google stock stood at $108.24, up more than 20% since the start of 2023, according to the latest charts retrieved by Finbold on May 9.
Based on 51 analyst forecasts on TradingView over the past three months, GOOG is viewed as a strong buy, with 40 analysts offering the highest rating for the stock, 7 recommending a buy, and 4 thinking GOOG is a hold. No analysts rated the stock as sell or strong sell.
Microsoft (NASDAQ: MSFT)
Microsoft (NASDAQ: MSFT), the second-biggest company in the world by market cap, is a blue-chip stock that attracted more investor attention recently after doubling down on its AI plans.
The company invested $10 billion in the AI sensation ChatGPT and implemented the chatbot’s underlying technology into its own search engine, Bing.
MSFT traded at $308.65 at the time of writing, recording a price surge of almost 27% year-to-date.
IBM (NYSE: IBM)
Compared to Google and Microsoft, it hasn’t been a great year for IBM (NYSE: IBM). The stock has underperformed the broader S&P 500 index, tumbling more than 12% year-to-date. But the price dip could be a good opportunity to jump on the IBM train, particularly due to the company’s strong AI relevancies.
IBM’s shares stood at $123.40 ahead of Tuesday’s market open. On the daily time frame, the support level is identified at $123.28, while a combination of significant moving averages and multiple trend lines creates a resistance zone between $124.56 and $128.51.
Amazon (NASDAQ: AMZN)
Just like its tech peers, Amazon (NASDAQ: AMZN) does not want to miss the emerging opportunities amid the ongoing AI boom.
AMZN was trading at $105.83 at press time, marking a year-to-date surge of over 23%. According to data from PandaForecast’s price prediction model, as of April 25, AMZN was expected to reach an estimated weighted average target price of $106.80 by May 2023.
The e-commerce giant is integrating AI technology across its entire business, with the company recently announcing voice-activated Alexa technology and Amazon Go automatic grocery stores.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.