Artificial intelligence (AI) has been a significant presence for many years, transitioning from industrial automation and formidable chess programs to autonomous vehicles and robotic vacuums. The pace of AI adoption and awareness, however, saw a remarkable surge in November 2022.
That was the month OpenAI unveiled the ChatGPT AI platform. This state-of-the-art large language model (LLM) has the capability to create text, generate nearly photorealistic images and videos, and even compose original music.
It demonstrates skills that were once thought to be exclusive to humans. While Nvidia has played a crucial role in the AI industry, its stock is currently valued at a premium. Over the course of two years, the company’s shares skyrocketed over 1,000%.
Additionally, Nvidia has seen significant increases in both revenue and free cash flow. As a result, numerous investors are beginning to view Nvidia as being overpriced. Therefore, it is important to identify other promising AI stocks that provide better value.
International Business Machines (IBM) has been a trailblazer in AI since the 1970s, introducing revolutionary systems such as the inaugural speech recognition technology and a programming language for self-learning robotics in manufacturing.
While IBM remains a key player in AI research, it may not always capture the headlines in the generative AI sector. The company tailors its AI offerings to enterprise clients.
Investigating Other AI Investment Options
The IBM Watsonx generative AI platform comes equipped with features including deep integration with business-grade information systems and strong digital security measures. IBM’s strategic long-term approach has been fruitful, as Watsonx, launched just over a year ago, has already secured more than $2 billion in orders.
This achievement is expected to be reflected in IBM’s forthcoming third-quarter earnings report, which will highlight the swift uptake of its solutions by corporate clients. Another noteworthy AI stock is UiPath, a leader in process automation.
UiPath’s robotic process automation (RPA) software assists organizations in automating repetitive processes. Unlike human employees, automated software doesn’t suffer from fatigue or boredom and helps eliminate human mistakes. With recent updates that leverage LLM technology, UiPath’s robots are capable of handling intricate repetitive tasks.
This includes tasks like filling out forms and understanding text input from users. Although UiPath states, “RPA is not AI; AI is not RPA,” the integration of RPA and AI greatly enhances automation workflows. Despite a drop in share price over the last two years, UiPath’s financial metrics have improved.
Trailing sales have surged by 32%, and the company flipped from a $134 million deficit to achieving $327 million in cash profits. The synergy of AI and RPA in UiPath’s offerings continues to grow stronger, making it a compelling investment option.
While Nvidia remains at the forefront of AI advancements, IBM and UiPath present strong alternative investment opportunities within this field. IBM’s emphasis on enterprise AI solutions and UiPath’s pioneering automation technology highlight significant growth potential, attracting discerning investors looking to take advantage of the growing AI landscape.
