What are the best AI stocks to buy for explosive growth potential?

Oliver Rodzianko thinks there are many great AI stocks to buy, even after all the hype. He believes robotics could be the next craze.

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The industry I write about is technology. Therefore, it’s no surprise that I think AI is one of the best fields to invest in right now. Most people know Nvidia as the hottest AI company of them all. They might be right. However, there are a few others worth my attention.

Revolutionising industries

C3.ai (NYSE:AI) is one of the most interesting companies helping other businesses to level up their operations with AI integrations. It has clients in fields including aerospace, financial services, healthcare, and even the US Air Force. Its customers include several Fortune 500 firms.

The company offers a range of software solutions, applications, and customisable AI tools to empower businesses. Not only does it make data analysis and business or security intelligence easier, but it also can fully tailor its services to meet the particular needs of a certain enterprise.

Many readers may have heard of a company called Palantir, and the two firms are not very different. Palantir has more dominance in the market right now, but what C3.ai has is a better valuation.

Investing early

The tricky thing with making great investments is that for the massive growth I really have to buy at the early stages. However, that comes with more risk. There’s a lot of luck involved for a company to reach and then sustain itself at the top of an industry.

That’s why I think it’s important to diversify and have most of my money in large, well-established companies. With a smaller amount of my total assets, I’m happy to take a bit more risk, and smaller might be best for an investment in C3.ai at this stage.

The primary reason I say this is that the company has yet to report profitability. That’s not a problem for me because I understand how to assess a company that’s in the earlier stages. However, it always means there’s a bit more uncertainty.

Beyond AI: robotics

Many investors want to know what the next field will be that’s going to create explosive growth in the stock market. I bet that it will be robotics, which is where AI will begin to have more noticeable effects on the physical economy. At the moment, AI is really affecting the transfer and efficiency of information. Just imagine when it begins to radically transform manufacturing, driving, cleaning, and more.

That’s why I’m hunting down shares in the robotics industry right now. One of my favourite places to invest at the moment that I think could lead to massive success is robotic surgery. The leader in that field is Intuitive Surgical, and I’m likely to be a shareholder of that firm in the next few months.

Four great choices

I believe all of these companies are compelling, and here’s a list of all of the ones I’ve mentioned. I’ve ranked them based on how attractive I find the investments at this time overall. I don’t own any of them yet, but I could see myself owning all of them soon, particularly Nvidia and Intuitive Surgical.

  1. Nvidia
  2. Intuitive Surgical
  3. Palantir
  4. C3.ai

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Oliver Rodzianko has no position in any of the shares mentioned. The Motley Fool UK has recommended Intuitive Surgical and Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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