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3 AI Stocks That Could Make You Rich in 2024

Barchart - Fri Dec 8, 2023

Tech is Back! The market exploded with optimism again yesterday as Alphabet announced the release of its Gemini Model, a new generative AI model that is said to compete against ChatGPT. This has heightened optimism as we see stiff competition in the AI space. The next question is, should you ride along this optimism?

I started investing right around the Netscape IPO. Since then, the tech sector has been one of the significant drivers of societal change, from sending messages over the internet to how smartphones have replaced traditional telephones. 

Today, AI is about to transform how we work and interact with technology - just as the smartphone has become tethered to our pockets. As we’re close to using AI as a mainstream tool in our day-to-day lives, some companies are poised to grow further with its continued acceptance. 

This article will look at three AI stocks you should check out now.

Symbotic Inc. (SYM)

Symbotic Inc. is an AI (artificial intelligence) enabled robotics automation technology company specializing in building and commercializing end-to-end technology solutions that help optimize supply chain operations. Its platform helps accelerate supply chain movement, order processing, and stockkeeping. Its platform comprises various robotic parts for product handling, palletizing, buffering, etc. 

The systems help ensure that the production throughput is maximized while reducing the cost. This is achieved by leveraging AI-powered system software and autonomous hardware. The company works with customers in consumer retail, the food industry, third-party logistics, and others. 

Symbotic’s latest financials marked a milestone in its performance with its positive adjusted EBITDA for the first time. Its revenue increased a whopping 98% YoY, and cash reserves topped $548 million. The company is projecting revenue to reach $350 million to $370 million with an adjusted EBITDA of $11 million to $14 million for the first quarter. EPS missed estimates by 33.33%, but analysts are still optimistic about the company and have rated it a Moderate Buy. 

Moving forward, the company’s management is focusing on building stronger partnerships and further scaling the business. For example, its latest strategic partnership involves implementing its system in Souther Glazer’s distribution centers. With substantial operating leverage, accelerated deployment of its systems, and growth prospects, the company is bound to ride the next wave of the AI boom.

UiPath, Inc. (PATH)

UiPath, Inc. is an enterprise automation specialist that offers solutions that allow its customers to find opportunities for automation, digitizing its workforce and its human capital that is scalable. Its platform helps customers evaluate its existing and new processes and utilize software robots to perform various actions that will help simplify workflows. 

The company uses its platform's API integrations and AI-based documents to understand its customer's single workflow. Its newest platform feature, UiPath Autopilot™, will help its users increase productivity using Specialized AI and Gen AI. No wonder it is considered a leader in the intelligent document processing space. 

PATH reported another strong quarter featuring a 24% YoY increase in revenue. Its annual recurring revenue reached $1.378 billion, highlighting its strength in its business. The company also beat analyst earnings expectations by 50%. Meanwhile, the company's cash flow from operations was reported at $42 million. Overall, PATH is well on its way to meeting its year-end guidance. 

Additionally, TIME Magazine's Best Inventions of 2023 recognized UiPath, Inc. and cemented its place as one of the leaders in enterprise automation. Its continued commitment to innovation and leveraging AI puts it among the top AI companies to buy right now.

Synopsys, Inc. (SNPS)

Synopsys, Inc. is an electronic design automation (EDA) software provider that offers technical service and support for advanced chips and electronic systems development. Its operations are divided into two main segments: Design Automation, which is focused on semiconductor intellectual property (IP) products, and Software Integrity for software tools and services that improve the security and compliance of various software in various sectors. 

The company recently announced its Copilot, which will further boost its capabilities in system chip design. SNPS also collaborates with market leaders like AMD, Intel, and Microsoft to harness the power of generative AI fully. 

Synopsys had a stellar Q4 and fiscal year 2023. It ended its year with a 15% YoY increase in annual revenue and a 25% YoY increase in quarterly revenue. Non-GAAP numbers for annual and quarterly EPS exceeded high-value guidance, and GAAP net income for FY 2023 ended at $7.92 per diluted share, up from $6.29 and representing an increase of 25.91% YoY. SNPS also beat analysts' quarterly earnings expectations by 3.20%

According to its CEO, Aart de Geus, the company will continue advancing its AI-driven designs, customer collaborations, and IP portfolio expansions. Even with uncertain macroeconomic conditions, the company prides itself on its silicon R&D and its competitively robust design starts. The company’s continued growth and leadership in the sector prove it deserves to be at the forefront of this AI tech boom. 

Final Thoughts

ChatGPT’s explosive growth has convinced market players that AI is here to stay. Investors who haven’t yet jumped on the bandwagon should probably have a second look, as the next lifetime opportunity could be around the corner for those willing to take the risk. However, interested parties should always be prudent with their investment decisions and conduct due diligence before hitting the buy button.


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On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.