In the rapidly evolving world of technology, artificial intelligence (AI) has emerged as a game-changer. The AI industry has transformed various sectors, including interactive media, entertainment, and cybersecurity, and its impact on the global economy cannot be underestimated. With an estimated market size of around USD 119.78 billion in 2022, AI and machine learning (ML) have become integral to numerous corporate activities. If you're looking to invest in this promising sector, we've compiled a list of the top 10 cheap AI stocks to consider buying in 2023.
1. EPAM Systems
EPAM Systems, Inc. (NYSE: EPAM) is a leading player in the AI industry. With an EV/Sales (TTM) ratio of 3.19, the stock is currently undervalued, presenting an excellent opportunity for investors. Wall Street analysts have set an average price target of USD 407 for EPAM Systems, indicating a potential upside of 38.58 percent.
SentinelOne, Inc. (NYSE: S) is a Mountain View, California-based systems software firm. Their AI-powered autonomous threat prevention, detection, and response platform, Singularity Extended Detection and Response, has garnered attention in the industry. While market experts have a neutral stance on SentinelOne, Inc. (NYSE: S) shares, the company's innovative approach makes it an intriguing investment prospect.
3. Baidu, Inc.
Baidu, Inc. (NASDAQ: BIDU) is a dominant player in the Chinese market, holding an 84 percent search engine market share. Despite its strong position, the stock had a P/E ratio of 15 on March 22, which is 32 percent lower than its five-year average. Analysts have set an average price target of USD 186.27, with a high projection of USD 234, making Baidu an attractive option for investors.
4. ASML Holding N.V.
ASML Holding N.V. (NASDAQ: ASML) is a frontrunner in the lithography business, commanding over 80 percent of the market share. This Dutch company specializes in manufacturing advanced semiconductor equipment used in the production of integrated circuits. Analysts project a price target of USD 809.73 for ASML Holding N.V., implying a potential upside of 19.66 percent.
5. International Business Machines Corporation
International Business Machines Corporation (NYSE: IBM) is a renowned multinational information technology corporation based in New York. IBM offers integrated solutions and services, including a hybrid cloud platform and software solutions. With a Buy rating from Stifel analyst David Grossman, IBM is worth considering as part of your AI investment portfolio.
6. SAP SE
SAP SE (NYSE: SAP) is a German application software company headquartered in Walldorf. Known for its enterprise application software, SAP SE has a strong presence in the AI market. Bernstein's Mark Moerdler has reaffirmed an Outperform rating on SAP SE shares, setting a price objective of USD 154.
7. Accenture plc
Accenture plc (NYSE: ACN) is a multinational information technology firm based in Dublin, Ireland. Their services include data management, smart automation, and robotic process automation. JPMorgan analyst Tien-tsin Huang rates Accenture, Inc. shares as Overweight, with a price target of USD 314, making it an appealing investment
Micron (NASDAQ: MU) is a semiconductor company that manufactures high-performance memory storage devices. As AI heavily relies on hardware, Micron plays a crucial role in the AI sector. While Susquehanna's Mehdi Hosseini has a Neutral rating on Micron equities, the stock remains an important consideration within the AI investment landscape.
9. Oracle Corporation
Oracle Corporation (NASDAQ: ORCL) is a systems software corporation based in Austin, Texas. They offer cloud applications and cloud-based industrial solutions, among other services. JPMorgan's Mark Murphy rates Oracle Corporation shares as Overweight, setting a price objective of USD 93.
10. Palantir Technologies Inc.
Palantir Technologies Inc. (NYSE: PLTR) is a Denver, Colorado-based application software corporation specializing in software solutions for the intelligence community in terrorist investigations. While DA Davidson's Gil Luria has initiated Neutral coverage of Palantir Technologies Inc. shares, the company's unique offerings make it an intriguing investment option in the AI sector.
Investing in AI stocks presents a significant opportunity to capitalize on the growing influence of artificial intelligence in various industries. The top 10 cheap AI stocks mentioned above provide a range of options for investors to consider in 2023. As with any investment, it's essential to conduct thorough research, analyze market trends, and consult with financial advisors before making any investment decisions.Also Read: Top 6 Non Technical Jobs in Artificial Intelligence