Here are my top artificial intelligence (AI) stocks to buy in March

By | March 18, 2024

We’ve already gotten a taste of the potential of artificial intelligence (AI) thanks to several products and services – from chatbot ChatGPT to AI-powered medical devices. But there is much more to discover and develop. And here’s why now is the perfect time to get into AI stocks: we’ve seen the potential of this technology, but this growth story is just beginning. And that means AI stocks offer us the opportunity to make huge profits over time.

And AI stocks can be found in many sectors, as a wide range of companies invest in this technology. That means investing in AI stocks can also give you a degree of diversification – another plus for your portfolio. But where to start? Here are my best AI stocks to buy right now in March.

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1. Super microcomputer

Super microcomputer (NASDAQ:SMCI) plays an important behind-the-scenes role in AI, and this role has helped the company’s revenues skyrocket in recent times. It just reported its first quarter of $3 billion, surpassing full-year 2021 revenue.

Supermicro sells servers, workstations, full-rack solutions and more – and these tools are essential for AI customers. The company’s growth rate was five times faster than the industry last year, demonstrating Supermicro’s differentiation.

The company’s building block architecture – using common elements across all products – and close working relationships with top chipmakers ensure products can be brought to market quickly. For example, Supermicro knows when Nvidia will release the latest chip so that chip will be immediately available in Supermicro products.

Supermicro was recently invited to participate in the S&P500proof that this company is one to keep an eye on and add to your portfolio.

2. Palantir Technologies

Palantir Technologies (NYSE:PLTR) often helps its customers aggregate disparate parts of their data and use that data to improve business operations. For years, the company’s largest customers were governments. But with the rise of AI, commercial customers are now increasingly turning to Palantir – and flocking to their new Artificial Intelligence Platform (AIP).

AIP, using AI of course, allows customers to harness the power of their data, and the company has come up with a brilliant way to onboard these customers. It contains AI Bootcamps aimed at helping the customer create a use case in just a few hours. The efforts are working and Palantir’s revenues have increased significantly in recent times, with growth in its commercial customer base soaring.

In the most recent quarter, commercial revenues in the US increased by 70%, while the number of commercial customers increased by 55%. Palantir recently announced more than two dozen new customers and partners at its recent AIPCon event.

The commercial customer is on track to become a big growth driver for Palantir, which means now is a great time to get in on this AI growth stock and benefit from it as the story unfolds.

3. Medtronic

Medtronic (NYSE:MDT) is a medical device giant, so you might not immediately think of an AI company. But this player is actually among the leaders in AI in healthcare. And in healthcare, AI could ultimately become transformative for patients, healthcare providers and businesses. The companies developing the best AI tools, which can significantly improve patient outcomes, could see profits soar as customers flock to these devices.

And Medtronic is already on its way. The company has received regulatory approval for five AI products to date, including the GI Genius for gastroenterology and an AI-based platform for spine surgery planning. In its most recent quarter, Medtronic said there was “strong adoption” of its spine surgery platform.

These programs can help Medtronic differentiate itself from its rivals and dominate in areas where competition is fierce. The company recently said the spine industry has been disrupted by consolidation, but the growth of Medtronic’s spine platforms keeps the company strong in this area.

Medronic has already delivered earnings growth over time, as well as dividend payments – and this is expected to continue. The icing on the cake? Medtronic’s focus on AI could give it a new growth engine that could pay off for investors in the long run.

Should You Invest $1,000 in Super Micro Computer Now?

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Adria Cimino has no positions in the stocks mentioned. The Motley Fool holds and recommends positions in Nvidia and Palantir Technologies. The Motley Fool recommends Medtronic. The Motley Fool has a disclosure policy.

Here Are My Top Artificial Intelligence (AI) Stocks to Buy in March was originally published by The Motley Fool

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