3 AI Stocks with Double-Up Potential over the Next 12 Months

Stocks to buy

Investors are actively seeking AI stocks as businesses increasingly utilize artificial intelligence for improved customer experiences and revenue growth. While many AI-related stocks have seen significant gains, a few companies continue to offer promising investment opportunities. Here are three top AI stocks to consider for July, allowing investors to position themselves for the AI boom. These are strong buying opportunities with the potential to double up upside over the next twelve months.

C3.ai (AI)

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TradeSmith’s AI prediction algorithms have identified C3.ai (NYSE:AI) as a promising investment opportunity. With recent price fluctuations, C3.ai has emerged as an attractive option. This Silicon Valley-based company specializes in providing AI applications to large enterprises, including the U.S. Air Force. Many tech firms find it cost-effective to acquire prebuilt software-as-a-service (SaaS) platforms like C3.ai rather than developing them internally.

C3.ai has experienced a remarkable 224.3% growth in 2023, primarily due to its presence in the AI sector. Although its business performance may have faced hurdles, C3.ai remains an intriguing player in the expanding AI market. Investors should carefully assess the potential and challenges of C3.ai’s stock before considering it for their portfolio. Stay aware and make informed investment decisions in the dynamic world of AI.

Microsoft (MSFT)

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Microsoft (NASDAQ:MSFT) is making significant strides in quantum computing, with plans to build its own quantum supercomputer within a decade. The company is investing in hardware, software, and security measures to advance this technology. With its strong position in various tech sectors and impressive stock performance, Microsoft is an attractive choice for investors. MSFT stock has seen a 41% increase this year and a remarkable 234% gain over the past five years.

Microsoft is venturing into the realm of artificial intelligence, forging a partnership with OpenAI to integrate ChatGPT into its products. This move, along with the growth of Azure and advancements in fields like quantum computing, will continue to propel Microsoft’s success. With plenty of potential ahead, Microsoft’s dominance is far from reaching its limits.

Baidu (BIDU)

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Baidu (NASDAQ:BIDU) is a pioneering force in China’s AI industry, poised for a potential comeback after initial setbacks. Its Ernie Bot AI platform’s impressive demonstrations and strong interest from companies indicate promising growth prospects. Baidu’s stock performance reflects the influence of AI, making it an intriguing AI stock to monitor.

Baidu’s advanced Ernie Bot showcases its strong AI research capabilities, improving image generation and user experience. Comate, an AI-powered tool, offers coding assistance across multiple languages, potentially transforming the coding landscape with its ability to generate up to 50% of AI-driven code. The coding assistant is also compatible with Integrated Development Environment (IDE) frameworks, making it more mainstream.

Despite its significant global presence as the sixth-most visited website worldwide and the leading search engine in China, Baidu is often overlooked by U.S. investors. The company’s adoption of AI technology to enhance its search engine is inevitable. The only uncertainties are the timing of that endorsement, the point at which the market will recognize its potential to drive the stock’s growth.

On the date of publication, Chris MacDonald has a position in BIDU. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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