Supercharging Your Portfolio: The Best AI Stocks for Explosive Growth

AI stocks such as Microsoft and Nvidia should be on your watchlist in June 2023. Let’s see why.

| More on:

AI, or artificial intelligence, stocks have had a stellar run in recent months. Generally, AI is powered by machine learning, which basically trains systems with vast amounts of data. The trained system is then used to develop applications across verticals and industries. OpenAI’s ChatGPT was launched in late 2022 and showcased the supremacy of generative AI as well as large language models.

Investor optimism surrounding AI stocks is huge, and for good reason. The AI space will be worth more than US$1 trillion by the end of 2030, providing early movers with a great chance to drive top-line growth.

Here are the best AI stocks you can buy for explosive growth in 2023 and beyond.

Microsoft stock

One of the largest companies in the world, Microsoft (NASDAQ:MSFT), is a well-diversified tech giant. It first invested in OpenAI back in 2019 and plowed in another US$10 billion recently following the blockbuster launch of ChatGPT.

Its search engine, Bing, is integrated with ChatGPT allowing Microsoft to significantly increase ad sales and gain market share from Google. Microsoft is now looking to incorporate ChatGPT with products such as Azure and its Office productivity suite.

MSFT stock has already surged 43% year to date and is up over 1,000% in the last decade.

NVIDIA stock

Due to the AI buzz, Nvidia (NASDAQ:NVDA) stock has almost tripled year to date. Trading at record highs, the semiconductor giant has now gained over 12,000% since June 2003, easily crushing broader market indices.

Now valued at over US$1 trillion in terms of market cap, Nvidia’s graphics chips will be used to train data-intensive machine learning platforms and large language models.

Nvidia is part of several growth markets, such as gaming and autonomous driving, making it one of the hottest tech stocks globally.

Docebo stock

A TSX stock part of the e-learning vertical, Docebo (TSX:DCBO) is up 211% since its initial public offering in 2019. Docebo has already onboarded approximately 3,500 enterprises on its AI-based e-learning platform, enabling the company to increase sales by 37% year over year in 2022.

In addition to an expanding customer base, the average contract value for Docebo has also increased by 30% in the last three years. This suggests companies are increasing spending on the Docebo platform, allowing it to benefit from improving profit margins.

It generates over 90% of sales via subscriptions, enabling Docebo to generate predictable cash flows across market cycles.

Down 60% from record highs, DCBO stock trades at a discount of 40% to consensus price estimates.

C3.ai

The final AI stock on my list is C3.ai (NYSE:AI). Similar to NVDA stock, C3.ai has gained 300% in 2023. A SaaS (software-as-a-service) company, C3.ai allows its base of enterprise clients to deploy AI applications effectively.

It offers a portfolio of tools for enterprises to enhance overall productivity at a lower cost. It will soon be launching a suite of AI-backed solutions, such as enterprise search, where companies can use natural language interfaces and retrieve relevant data sets from systems.

C3.ai is well poised to benefit from a first-mover advantage and deliver market-thumping gains to shareholders.

But AI stock trades at a premium of over 40% to price target estimates.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends C3.ai, Docebo, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

More on Tech Stocks

Canada Day fireworks over two Adirondack chairs on the wooden dock in Ontario, Canada
Tech Stocks

Best Tech Stocks for Canadian Investors in the New Year

Three tech stocks are the best options for Canadians investing in the high-growth sector.

Read more »

doctor uses telehealth
Tech Stocks

What to Know About Canadian Small-Cap Stocks for 2025

Small cap stocks are a great way to experience outsized gains. Here is what you need to know about small…

Read more »

A worker drinks out of a mug in an office.
Tech Stocks

A Top-Performing U.S. Stock That Canadian Investors Really Should Own

Canadian investors should buy and hold this top performing U.S. stock for generating significant returns in the long run.

Read more »

dividends grow over time
Tech Stocks

Got $1,500? 2 Tech Stocks to Buy and Hold Forever

Two tech stocks with high-growth potential are sound prospects for long-term investors.

Read more »

Soundhound AI is a leader in voice recognition software
Tech Stocks

3 Tech Stocks I’m Looking to Buy in January

From tech stocks with consistent growth histories to stocks experiencing a temporary bullish momentum, there are multiple attractive options in…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Tech Stocks

Take Full Advantage of Your TFSA: Growth Strategies for 2025

Maximize your TFSA in 2025 with proven growth strategies. Learn how to build a tax-free portfolio, avoid common mistakes, and…

Read more »

up arrow on wooden blocks
Tech Stocks

1 Soaring Stock I’d Buy Now With No Hesitation

Although it's from a rapidly evolving discipline and carries unique risks, the robotics stock's growth potential is too formidable and…

Read more »

Biotech stocks
Tech Stocks

Digital Healthcare Boom: 2 TSX Stocks Transforming Canadian Medicine

Even though telehealth stocks carry the risk factor of the tech sector and other innovative stocks, the profit margin can…

Read more »