AI stocks are still selling like pancakes, with companies like Nvidia and SMCI leading the charge. Admittedly, the over-zealous buying sprees make many wonder if the tech sector is in a bubble. Whether true or not, it’s in an investor’s best interest to buy into AI stocks that haven’t run their course. These companies may be sitting on the sidelines, working on the emerging technology until they’re ready to skyrocket.
So, today, let’s look at AI stocks that could offer epic growth to investors. To get the list, I used the following filters:
- Companies involved in developing apps, tools, or components to drive AI growth
- Stocks with a minimum buy rating and above from analysts
- Yearly earnings growth of more than 100%
- Then, I sorted the stocks based on earnings growth from highest to lowest. This lets me focus only on AI stocks with exponential earnings and profit growth, which could be the start of their epic rise.
Itron (ITRI)
While Itron (NASDAQ:ITRI) may not be as exciting as other tech companies that sell new gadgets and cool toys, its services cater to some of society’s most important needs.
The company offers Industrial IoT, energy, water, gas and intelligent infrastructure services, allowing its customers to measure and analyze water, gas, and electricity consumption. Itron operates in three segments:
Device solutions: covers hardware products used in measurement, sensing, or control applications
Networked Solutions: network infrastructure, communication devices, and application software design
Outcomes: value-added services that include artificial intelligence and machine learning capabilities
The company recently unveiled a new low-voltage energy resource management solution for the Australian market, which offers a data-driven method for managing energy resources.
Moving on to financials, the company registered a 21% year-over-year (YOY) growth in revenue in fiscal year 2023, reaching $2.2 billion. Gross profits, meanwhile, reached $714 million and increased by 37%. Due to higher gross profits, operating income increased by $37 million and reached $49 million.
All this culminated in an impressive turnaround net income of $97 million from last year’s $9.7 million loss—a 1,100% improvement.
No wonder Wall Street analysts rate it a strong buy. As a result, ITRI stock might be worth considering if you are looking for something explosive in AI.
Opera (OPRA)
From its humble beginnings as a web browser firm based in Norway to becoming one of the world’s major browser developers and leading internet consumer brands, Opera (NASDAQ:OPRA) has become a strong player in browser development.
Besides web development, the company integrates AI-driven content discovery and recommendation through its platform. Opera recently won the IF Design Award for its reimagined browser, Opera One, highlighting its continued push for customer experience. Opera has also released an ARM-optimized browser powered by Snapdragon chipsets for Windows devices.
Fiscal year 2023 proved to be a year of considerable growth for Opera. Revenue reached $396.82 million, growing 20% YOY. The bottom line saw even better growth. The company’s net income reached $169.4 million, a massive boost from last year’s $15 million, representing a 1,027% growth.
“We believe Opera is in a great position to continue executing against our objectives in 2024,” Co-CEO Lin Song added. “Our high-ARPU user growth trajectory remains strong, fueled by our unique browser offering.”
With its continuously growing revenue and earnings, it’s not surprising that analysts rate it a strong buy, making it an even more attractive opportunity for investors looking for AI stocks.
Sprinklr (CXM)
Sprinklr (NYSE:CXM) offers enterprise software that helps its business clients with their daily customer-facing functions. It leverages AI in its Unified Customer Experience Management platform to allow clients to collaborate between different customer-facing functions and work with colleagues across internal silos.
The company recently launched Sprinklr Digital Twin, which harnesses Sprinklr AI+ to enhance the organization’s productivity.
Sprinklr’s fiscal 2024 results (which ended on January 31, 2024) showed promise. Revenue grew 18% YOY, reaching $732.4 million, and was primarily driven by a 22% bump in subscription revenue. Net income also saw quite a turnaround from fiscal year’s 23’s $55.7 million loss to fiscal year 2024’s $51.4 million profit, which translates to a 192% growth.
“Our vision,” said CEO and founder Ragy Thomas, “is clear: to unify customer-facing teams on an AI-powered platform. We’re strengthening our foundation and recruiting top-tier leaders to fuel our next phase of growth.”
This strong growth, vision and outlook make me see the reason analysts rate the CXM stock as a strong buy.
— Rick Orford
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Source: Investor Place