Nearly every technology company touts its artificial intelligence credentials these days. I don’t blame them, considering AI is a valuable addition to many software and services.
But just because tons of companies are quickly integrating AI into their offerings, it doesn’t mean they’re top AI stocks. Instead, you should look for leaders who are knee-deep in this segment and setting the pace in the AI race. Here are three top AI stocks leading the pack that are worth buying right now.
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Palantir Technologies (NYSE: PLTR) was in the business of helping organizations sort data before AI became commonplace. For years, it focused on using artificial intelligence to help the government parse through gobs of data, but it has since expanded into the commercial market.
Its early lead in this space is paying off. The company just reported its third-quarter results (which ended Sept. 30), in which revenue rose 30% from the year-ago quarter to $726 million and adjusted earnings per share spiked 43% to $0.10.
U.S. commercial revenue, a fast-growing part of Palantir’s business, increased sales by 54% to $179 million and accounted for about one-quarter of the company’s total revenue in the quarter. Part of that growth comes from Palantir’s impressive customer growth, which was up 39% in the quarter amid 104 customer deals that were worth $1 million or more.
If I have one hesitation with Palantir, it’s the company’s sky-high valuation. Palantir’s shares have forward price-to-earnings of 101 right now. That’s expensive by any measure.
However, the company is clearly making the right moves in the AI race and is also profitable, not to mention having $4.6 billion in cash and cash equivalents. With its customers knocking down its doors for its tech, and sales and earnings growing at a healthy clip, Palantir likely still has more room to run.
Nvidia (NASDAQ: NVDA) is one of the obvious choices when it comes to top AI stocks. For…
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