Have you invested in AI stocks? Artificial intelligence (AI) stocks are the latest trend, with pundits and prospective investors touting the long-term appeal of these tech-heavy companies.
Fortunately, it’s not too late to become part of the massive growth appeal that these AI stocks can offer investors. And yes, that even means after the brutal day on the market we saw at the start of this week.
Here’s a look at some of the AI stocks you may want to consider adding to your long-term portfolio.
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A familiar name with plenty of potential
Most investors are familiar with Microsoft (NASDAQ:MSFT), the tech titan that is known for its enterprise software, operating system and office suite. But when it comes to AI, it’s Microsoft’s exclusive partnership with OpenAI – the name behind ChatGPT – that should have investors excited.
More specifically, OpenAI will utilize Microsoft’s Azure cloud platform (and by extension, its APIs and therefore generate revenue for Microsoft).
Microsoft has invested billions into that partnership, making it the exclusive cloud provider for that platform. Throw in that enterprise and office ecosystem referenced above, and you have major synergy potential.
For example, let’s consider AI integration into Windows. Besides its limited free tier, Microsoft offers a paid premium tier that unlocks the AI work with Office to write documents, transcribe meetings, and organize inboxes.
As of the time of writing, Microsoft trades at $400 per share, up over 6% year-to-date (but down 5% this week). That recent drop would make this a good time to add Microsoft to a list of AI stocks to buy.
(AI) Shopping…made easier
Another familiar name among investors is Shopify (TSX:SHOP). Shopify runs a platform that allows customers to build and deploy online storefronts in a fraction of the time over traditional development means.
The company has also bolted on a series of expansions to that platform over the years, including everything from analytics and fulfilment to support, marketing, and logistics.
And Shopify is using AI, which it refers to as Shopify Magic, for a variety of purposes. This includes generating product descriptions and media, as well as sales prediction models for returning customers.
As of the time of writing, Shopify trades down a whopping 28% year-to-date, making it an ideal time to buy this long-term top growth pick.
This is especially true after the recent correction we saw in the market that put Shopify (and other stocks) into discount territory.
Should you invest in AI stocks right now?
AI is one of the emerging buzzwords on the market, which gives it plenty of popularity among investors. But does this mean that investors should invest in AI stocks like Microsoft and Shopify right now?
The answer to that is a yes (but within reason). Investing in AI stocks can lead to significant long-term growth potential, but it does come with some risk (as is the case with every investment).
What prospective investors contemplating Microsoft or Shopify as AI stocks to buy should note is that this is a long-term game that will be a bumpy ride.
In my opinion, one or both of the above AI stocks would do well as part of a larger, well-diversified portfolio.
Buy them, hold them, and watch them grow.
