Two Artificial Intelligence AI Stocks to Buy Now

Artificial intelligence (AI) and its subsectors, such as machine learning, have the potential to revolutionize the way we do business. Certain firms are already using these powerful technologies to carry out complex operations instantly, eliminating the need for many hours of human input. By 2028, the AI industry's projected addressable market is predicted to grow from $93 billion in 2021 to $997 billion per year.

AI stocks are a new investment opportunity for investors. AI is a technology that is getting more and more popular, and it is not going to stop anytime soon. Therefore, AI stocks are not only a way to invest in the future, but they also have high returns.

Investing in AI stocks can be done by buying shares of companies that focus on developing artificial intelligence or investing in funds that invest in these companies. Investors should keep an eye on the stock price and other factors such as company sales and market capitalization.

Here are two AI-related stocks that will help you profit from the industry's tremendous expansion.

C3.ai (NYSE: AI)

C3.ai is the first enterprise AI startup of its sort. As a result, companies who wish to profit from AI but don't have the knowledge to create it themselves might buy ready-made or bespoke AI solutions. It supports 14 industries, including oil and gas and financial services and the industrial and healthcare sectors.

C3.ai's applications are used in the oil and gas business, for example, to forecast costly equipment breakdowns, therefore averting catastrophic shutdowns of the output. They also employ it to cut carbon emissions while increasing efficiency. Over 10,000 devices and 23 large-scale assets are monitored by C3.ai, which generates 1.3 trillion predictions every month.

This year, the company signed a massive five-year deal worth $500 million with the United States Department of Defense, and it also has extensive agreements with tech giants like Microsoft and Alphabet's Google to develop advanced artificial intelligence applications.

C3.ai has a market capitalization of $2.2 billion, but investors only place a $1 billion value on its core AI company, consisting of over $1 billion in cash and short-term investments. That is even though the company expects to bring in $252 million in revenue in fiscal 2022, with $469 million in remaining performance commitments as of the most recent fiscal third quarter, an increase of 90 percent year-over-year. This stock is a good option to bet on the AI industry's future with a wide range of customers.

Splunk (NASDAQ: SPLK)

Splunk is another stock in artificial intelligence to buy and hold for investors. Ninety-two of the Fortune 100 firms rely on this machine learning powerhouse, illustrating the increasing need for smart technology across many industries.

A customer of Splunk, Domino's Pizza, employs machine learning to monitor over 15 digital sales channels, gathering and analyzing data in real-time. Using this data, Splunk can forecast problems and assist in making speedy fixes in a live environment. Similar to Honda's use of insights from Splunk, which has reduced the time to repair at its Alabama factory by 70%, the platform's predictive analytics have prevented costly shutdowns.

Splunk is going through a significant shift in its business model. As a result, it's seeing a jump in income due to its concentration on cloud-based services. Cloud-based revenues at the corporation increased by 70% in the just-completed fiscal year 2022, compared to a 19% increase in total sales. As a result, Splunk's cloud revenue of $943 million now accounts for 35% of the company's overall sales of $2.67 billion, up from only 24% the year before.

As a result, Splunk is drawing in more enterprise clients. As a result, 675 customers in fiscal 2022 spent $1 million or more yearly, an increase of 32 percent from fiscal 2021. As part of the company's move into the next phase of growth, Splunk has hired a new CEO with experience in SaaS revenue models.