3 Artificial Intelligence (AI) Stocks to Buy Instead

There’s no denying this tech titan Nvidia (NASDAQ:NVDA) has been many investors’ favorite way to connect with the artificial intelligence (AI) craze over the past 18 months. And rightly so. Its processors form the backbone of most AI platforms.

As is often the case, time and reality are catching up with Nvidia. Competitors are working diligently to narrow the market share gap, and (because it’s already so large) Nvidia’s accelerating pace of growth is about to slow. Its shares are also very expensive, as measured by some metrics…a premium that has some investors wondering how high it can go in the short term.

Translation: Maybe it’s time to start looking at other ways to invest in the next stage of the AI ​​revolution. Here are three other AI stocks to consider instead of (or at least in addition to) Nvidia.

1. Palantir Technologies

If your experience with (and knowledge of) AI is limited to user-friendly chat platforms like OpenAI’s ChatGPT, Alphabet’s Google Gemini or Microsoft‘s Copilot, you’ll probably agree that these are smart apps. But generative AI doesn’t exactly seem like a technology that should form the basis of an entire industry.

However, these AI-powered chatbots are far from the only way to market artificial intelligence solutions. AI platforms designed from the ground up to help them sift through mountains of digital data to make more informed decisions are far more marketable to industry and institutions.

Enter Palantir Technologies (NYSE:PLTR), a standalone AI software name (i.e. solely dedicated to AI-based decision-making solutions) that is becoming a major player in this young industry. Last year, it had revenue of $2.2 billion and turned just over $200 million into net profit.

That’s not a lot of money, especially for a company with a market cap of over $50 billion. However, the bullish key here lies in the trajectory of these results. Analysts expect Palantir’s revenue to grow by an average of more than 20% annually over the next few years, creating scale that will push emerging companies out of the red and black.

Driving this potential growth is the ever-increasing willingness to pay for everything decision AI can do. Technology market research firm Precedence Research forecasts that the AI ​​software market is expected to grow at an annualized rate of 23% through 2032.

Since Palantir Technologies already serves a large number of high-profile customers, including network name Cisco Systemsthe US military and the energy giant ExxonMobilchances are it’s already positioned to capture at least its fair share of that growth.

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2. IonQ

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