Are you interested in investing in artificial intelligence (AI) stocks but prefer more affordable options beyond big-name companies like Nvidia? If you have $5,000 to spare, you might want to consider looking into Rockwell Automation (NYSE: ROK), Oracle (NYSE: ORCL), and International Business Machines (NYSE: IBM) as potential investments. Here’s why these stocks are still considered cheap buys in the AI sector.
Rockwell Automation specializes in industrial automation, making it a versatile choice for various industries seeking improved efficiency. While its stock has faced some challenges with a 3% decline in the past year, the company projects up to 6.5% revenue growth for the fiscal year 2024. With strong profit margins and a relatively low forward earnings multiple, Rockwell Automation shows promise for long-term growth potential.
Oracle, a prominent player in databases and cloud services, has seen a 34% increase in its stock value over the past year. The company reported a 7.1% revenue growth and a significant 27% profit jump in its most recent quarterly results. With the rising demand for cloud services and AI infrastructure, Oracle’s growth trajectory is poised to accelerate even further.
International Business Machines (IBM) stands out for its WatsonX platform, particularly in helping companies govern their AI models effectively. While the company’s revenue increased by a modest 4% year over year, the demand for WatsonX and generative AI solutions has doubled in the past quarter. As businesses continue to focus on AI development and security, IBM’s expertise in this area positions it as a valuable asset for investors looking for AI exposure.
Despite IBM’s impressive 44% stock gains in the past year, it remains one of the most affordable options based on forward earnings estimates. As the AI industry evolves, IBM’s contributions to shaping the sector’s growth could lead to further appreciation of its stock value.
In conclusion, these three AI stocks offer potential for investors seeking affordable opportunities in the AI sector. While each company has its unique strengths and growth prospects, they collectively provide a diversified investment portfolio in the rapidly expanding field of artificial intelligence. Consider exploring these options to capitalize on the long-term potential of AI technology.
