We’ve already gotten a taste of artificial intelligence’s (AI) potential thanks to various products and services — from chatbot ChatGPT to AI-powered medical devices. But there’s a lot more to discover and develop. And this is why now is the perfect time to get in on AI stocks: We’ve seen this technology’s potential, but this growth story is just beginning. And that means AI stocks offer us the possibility of tremendous gains down the road.
And AI stocks can be found in many industries, considering a broad range of companies are investing in this technology. That means an investment in AI stocks also could offer you a certain degree of diversification — another plus for your portfolio. But where to start? Here are my top AI stocks to buy right now in March.
1. Super Micro Computer
Super Micro Computer (NASDAQ: SMCI) plays a key behind-the-scenes role in AI, and this role has helped the company’s earnings to take off in recent times. It just reported its first $3 billion quarter, which surpasses its revenue for the entire year back in 2021.
Supermicro sells servers, workstations, full rack scale solutions, and more — and these tools are essential for AI customers. The company’s growth rate over the past year was five times faster than that of its industry, showing Supermicro stands out.
The company’s building blocks architecture — using common elements across products — along with its close working relationships with top chipmakers help it bring products to market fast. For example, Supermicro knows when Nvidia will release the latest chip so that chip will immediately be available in Supermicro products.
Supermicro recently was invited to join the S&P 500, proof this company is one to watch — and add to your portfolio.
2. Palantir Technologies
Palantir Technologies (NYSE: PLTR) helps its customers aggregate often disparate pieces of their data and use that data to improve operations. For years, the company’s biggest customers have been governments. But with the AI boom, commercial customers now are turning more and more to Palantir — and flocking to its new Artificial Intelligence Platform (AIP).
AIP, using AI of course, allows customers to harness the power of their data, and the company has come up with a genius manner of bringing these customers on board. It holds AI Bootcamps meant to help the customer create a use case in just a few hours. The effort is working, and Palantir’s earnings have taken off in recent times — with commercial customer growth surging.
In the most recent quarter, U.S. commercial revenue soared 70%, and commercial customer count increased 55%. Palantir recently announced more than 20 new customers and partners at its recent AIPCon event.
The commercial customer is on track to become a big growth driver for Palantir, meaning now is a great time to get in on this AI growth stock and benefit as the story unfolds.
3. Medtronic
Medtronic (NYSE: MDT) is a medical device giant, so you may not immediately think of it as an AI company. But this player actually is among leaders in the AI in healthcare space. And in healthcare, AI could eventually become transformative for patients, healthcare providers, and companies. The companies that develop the best AI tools, ones that may greatly improve patient outcomes, could see earnings take off as customers flock to these devices.
And Medtronic already is on the way. The company has received regulatory approval so far for five AI products, including the GI Genius for gastroenterology and an AI-based platform for spinal surgery planning. In the most recent quarter, Medtronic said it saw “strong adoption” of the spine surgery platform.
These programs could help Medtronic stand out from its rivals and dominate in areas where competition is high. The company recently said the spine industry has been disrupted by consolidation, but growth of Medtronic’s spine platforms is keeping the company strong in this area.
Medronic already has delivered earnings growth over time, as well as dividend payments — and this is set to continue. The icing on the cake? Medtronic’s focus on AI could offer it a new growth driver that may pay off for investors over the long term.
Should you invest $1,000 in Super Micro Computer right now?
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool recommends Medtronic. The Motley Fool has a disclosure policy.
Here Are My Top Artificial Intelligence (AI) Stocks to Buy in March was originally published by The Motley Fool
