Artificial intelligence (AI) has been around for decades. It has evolved from industrial automation and unbeatable chess engines to self-driving cars and automatic vacuum cleaners. However, the adoption and general awareness of AI accelerated dramatically in November 2022.
That’s when OpenAI released the ChatGPT AI platform. This cutting-edge large language model (LLM) can generate text and create nearly photorealistic images and videos. It can even produce new music.
It showcases capabilities previously considered uniquely human. While Nvidia has been a significant player in the AI space, its shares are now highly priced. The company’s stock surged over 1,000% in two years.
It also had substantial boosts in both revenues and free cash flows. Consequently, many investors see Nvidia as overvalued. Thus, it is essential to explore other promising AI stocks that may offer more value.
International Business Machines (IBM) has been a pioneer in AI since the 1970s. It introduced game-changing technologies like the first speech recognition system. It also created a programming language for self-learning manufacturing robots.
IBM continues to be a leading AI researcher, although it might not always be in the generative AI spotlight. IBM focuses on enterprise clients with its AI products.
exploring alternative AI investments
The IBM Watsonx generative AI platform offers features such as deep integration with other business-grade information systems and robust digital security. IBM’s strategic patience has paid off. Watsonx, launched just over a year ago, has already generated more than $2 billion in orders.
This success should be evident in IBM’s upcoming third-quarter report. It will showcase the rapid adoption of its solutions by corporate clients. Another compelling AI stock is process automation expert UiPath.
The company’s robotic process automation (RPA) software helps businesses automate repetitive tasks. Unlike human workers, automated software doesn’t get bored or tired and eliminates human error. With recent enhancements incorporating LLM functions, UiPath’s robots can manage complex repetitive tasks.
This includes filling out forms and interpreting user-entered text. Although UiPath insists, “RPA is not AI; AI is not RPA,” the combination of RPA and AI significantly enhances job automation processes. Despite a decline in share price over the past two years, UiPath’s financial performance has improved.
Trailing sales rose by 32% and the company shifted from a $134 million loss to $327 million in cash profits. The company’s AI-plus-RPA solutions continue to grow more powerful. This makes UiPath an excellent investment opportunity.
While Nvidia remains a leader in AI technology, IBM and UiPath offer robust alternative investments in the AI space. IBM’s focus on enterprise solutions and UiPath’s innovative automation software present significant growth opportunities. They are appealing for savvy investors looking to capitalize on the expanding AI market.
