In the ever-evolving landscape of investing, there’s always a new trend capturing the attention of investors. Currently, one trend stands out above the rest: the artificial intelligence (AI) revolution. AI, which utilizes software and systems to perform tasks typically handled by humans, has become a focal point across various sectors and industries. With machine learning capabilities enabling software and systems to evolve and improve over time, AI is projected to contribute over $15 trillion to global gross domestic product (GDP) by the end of the decade, according to PwC researchers.
As investors look for opportunities in the AI space, several stocks are drawing attention from Wall Street analysts. While leading tech giant Nvidia (NASDAQ: NVDA) remains a popular choice, other AI stocks offer even greater upside potential, according to select analysts.
1. Baidu (NASDAQ: BIDU)
China-based Baidu, known for its dominant internet search engine in China, is positioned to capitalize on the growth of AI. With its AI Cloud and autonomous ride-hailing service, Apollo Go, Baidu has demonstrated strong growth potential beyond its core search segment. Analysts, such as Fawne Jiang at Benchmark, believe that Baidu’s stock could reach $210 per share, representing an 89% upside from its closing price on February 23. With its leading market share in China’s internet search and promising AI initiatives, Baidu presents a compelling opportunity for investors.
2. Mobileye Global (NASDAQ: MBLY)
Mobileye Global, a developer of advanced driver assistance systems (ADAS) and autonomous driving solutions, is poised to benefit from the increasing integration of technology in vehicles. With its innovative solutions like SuperVision, Mobileye is at the forefront of the automotive industry’s shift toward smarter vehicles. Analyst Itay Michaeli of Citigroup predicts that Mobileye Global’s stock could more than triple to $72 per share. As demand for ADAS and autonomous driving technology grows, Mobileye’s leadership position and profitability make it an attractive investment opportunity.
3. Tesla (NASDAQ: TSLA)
As a pioneer in the electric vehicle (EV) industry, Tesla relies heavily on AI solutions to power its vehicles’ Autopilot software. Despite facing challenges such as pricing pressure and increased competition, Tesla continues to lead the North American EV market. Analyst Dan Ives of Wedbush Securities believes that Tesla’s stock could reach $315 per share, representing a 64% upside from its recent closing price. While Tesla’s ambitious growth plans and profitability are noteworthy, investors should consider the company’s exposure to evolving market dynamics and competitive pressures.
The AI revolution presents numerous investment opportunities across various sectors. While Nvidia remains a strong contender in the AI space, investors may also want to consider the potential upside offered by Baidu, Mobileye Global, and Tesla. As with any investment, thorough research and careful consideration of each company’s prospects are essential for making informed decisions in the dynamic AI market landscape.
Shayne Heffernan
