Over the last year, the excitement around artificial intelligence (AI) technology from both investors and consumers has grown rapidly. More and more companies are now joining the party, and new technology continues to be released, highlighting the significant growth potential that AI stocks have.
Many of these technologies are still in their early stages, yet even with some bugs and improvements necessary, the power of AI technology is already highly apparent. Therefore, as the industry continues to develop and more innovation comes our way, it’s clear there is a tonne of potential for AI technology to take off.
Companies in all types of industries are scrambling to adapt AI into their operations to get a leg up on their competition. Therefore, the AI industry is poised for exponential growth as it becomes increasingly integrated into various sectors, such as healthcare, finance, and technology.
Despite being just over a year since the launch of ChatGPT, the first AI chatbot to capture the attention of investors and consumers, it’s already clear that AI is not just a fad or a niche technology.
In fact, it has the potential to significantly impact numerous industries. From automating processes to enhancing decision-making, AI’s versatility means that companies investing in or leveraging AI are likely to see sustained demand for their products and services.
This gives investors plenty of choice when looking to buy AI stocks. You can buy the companies that are creating the AI technology. However, you can also buy stocks that have already adapted AI and now have a first-mover advantage.
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What are the best AI stocks to buy?
As I mentioned above, Canadians have a tonne of choice when it comes to investing in the AI sector and finding high-potential stocks with explosive growth potential.
First, you have the companies developing AI technologies, which are at the forefront of this revolution and offer investors the potential for significant returns as AI continues to transform industries and create new market opportunities.
However, you also have companies that effectively utilize AI and can gain a significant competitive advantage by improving efficiency, reducing costs, and innovating faster than their competitors.
Investing in these stocks means finding businesses that are likely to outperform their peers as they integrate AI, leading to stronger financial performance and potentially higher stock prices over time.
Plus, with many of the top tech stocks that are creating the technology, like Alphabet and Microsoft, trading at hefty valuations, you’re best bet might be to find reasonably priced stocks that are adopting AI technology into their operations and gaining these competitive advantages.
For example, WELL Health Technologies (TSX:WELL) was already a high-potential growth stock trading at a compelling valuation. However, with WELL already integrating AI into its operations, the healthcare tech stock now has even more growth potential in the coming years, making it one of the best stocks to buy now.
In fact, WELL’s 3 AI-powered solutions, AI Voice, AI Decision Support, and AI Inbox Admin, have already significantly improved the efficiency at its clinics, saving doctors hours of administrative work.
Plus, not only is WELL integrating AI into its own operations, but the stock is also funding and supporting the best early-stage AI businesses to ensure healthcare providers have access to the most valuable AI features in their practices.
In October of last year, WELL invested in Healwell AI when its revenue run rate was just $5 million. That has now already grown to a revenue run rate of $65 million in less than a year, and WELL stock believes that Healwell could reach a revenue run rate of $100 million by the end of 2024.
So, there are plenty of companies to consider when looking for AI stocks that have significant growth potential. WELL Health isn’t the only company that’s already rapidly integrating this technology into its operations, there are plenty of other high-quality stocks that you can buy undervalued that offer similar potential as well.
Whatever you do, though, you’ll certainly want to gain exposure to AI stocks in one way or another. The technology has incredible potential and could offer massive growth for years to come, making these stocks no-brainer investments.
