We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are These Affordable Artificial Intelligence Stocks on Your Radar?
Read MoreHide Full Article
Advancement and development in artificial intelligence (AI) has remained a headline topic in 2024 and will likely continue for the foreseeable future. The obvious reason for the AI buzz is of course attributed to its ability to optimize and accelerate production.
Artificial intelligence is being used by businesses in a variety of ways to improve efficiencies, save time, and decrease costs. The economies of scale that AI powers is also why it is considered one of the most groundbreaking technologies in modern history.
This is why investing in companies that are powering the AI revolution is at the forefront of investors' minds. With its AI-powering chips, Nvidia (NVDA - Free Report) is certainly at the center of attention but there are more affordable options and alternatives to consider.
That being said, here are three affordable stocks that should be on investors' radars as these companies are playing a hand in powering the AI revolution as well.
Dell & Hewlett-Packard’s Partnerships with Nvidia
One of the reasons Nvidia has been so successful in terms of its AI-powering capabilities is because of its partnerships with Dell Technologies (DELL - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) . Using Nvidia’s AI chips, Dell and Hewlett-Packard have advanced the magnitude of IT solutions and integrated systems extending to servers, storage, data security and management.
With AI revamping Dell and Hewlett-Packard their top and bottom lines should be secure making them two of the more intriguing value stocks to consider in the tech sector. Notably, both sport an “A” Zacks Style Scores grade for Value with Dell’s stock trading at 12.1X forward earnings and Hewlett-Packard shares at just 7.9X.
Furthermore, Dell has now surpassed earnings expectations for seven consecutive quarters with Hewlett-Packard topping EPS estimates in its last four quarterly reports. Dell’s stock currently covets a Zacks Rank #1 (Strong Buy) and will be reporting its fourth quarter earnings for fiscal 2023 at the end the month with Hewlett-Packard sporting a Zacks Rank #2 (Buy) and set to release Q1 results for FY24 in early March.
Image Source: Zacks Investment Research
Palantir’s Surge After AI Boost Revenue
Reporting its Q4 results after hours on Monday, Palantir Technologies (PLTR - Free Report) is certainly a company with AI capabilities that will be on more investors' radars. Palantir’s stock popped +30% in today's trading session to $21 a share as demand for its AI Platform (AIP) led to Q4 sales rising 19% to $608.35 million. This beat estimates by roughly 1% and put analysts with bearish views and short-sellers to sleep causing a short squeeze. It's noteworthy that Palantir's stock currently has an "A" Zacks Style Scores grade Growth.
Image Source: Zacks Investment Research
To that point, Palantir has started to prove that demand for its AIP is very real and driven by its machine learning capabilities or Large Language Model (LLM) which is an AI algorithm that employs neural network techniques with an extensive number of parameters to process and understand human languages and text.
These LLMs can be critical to building Palantir’s software that assists in counterterrorism investigations and operations. Palantir's U.S. commercial revenue was up 40% and the U.S. government has been one of its main clients due to the company’s advancement in defense intelligence. Palantir reported Q4 net income of $93.4 million which more than tripled from $30.9 million a year ago. Earnings of $0.08 a share came in line with the Zacks Consensus and doubled from $0.04 a share in the prior-year quarter.
Palantir’s stock currently lands a Zacks Rank #3 (Hold) and a buy rating could be on the way as annual earnings estimate revisions are likely to go up in the following weeks.
Image Source: Zacks Investment Research
Bottom Line
With Dell’s stock still under $100 and Hewlett-Packard and Palantir shares trading under $25, these are three of the more affordable and promising "AI" stocks to consider. They should also be viable investments for 2024 and beyond as the AI revolution continues to accelerate.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Are These Affordable Artificial Intelligence Stocks on Your Radar?
Advancement and development in artificial intelligence (AI) has remained a headline topic in 2024 and will likely continue for the foreseeable future. The obvious reason for the AI buzz is of course attributed to its ability to optimize and accelerate production.
Artificial intelligence is being used by businesses in a variety of ways to improve efficiencies, save time, and decrease costs. The economies of scale that AI powers is also why it is considered one of the most groundbreaking technologies in modern history.
This is why investing in companies that are powering the AI revolution is at the forefront of investors' minds. With its AI-powering chips, Nvidia (NVDA - Free Report) is certainly at the center of attention but there are more affordable options and alternatives to consider.
That being said, here are three affordable stocks that should be on investors' radars as these companies are playing a hand in powering the AI revolution as well.
Dell & Hewlett-Packard’s Partnerships with Nvidia
One of the reasons Nvidia has been so successful in terms of its AI-powering capabilities is because of its partnerships with Dell Technologies (DELL - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) . Using Nvidia’s AI chips, Dell and Hewlett-Packard have advanced the magnitude of IT solutions and integrated systems extending to servers, storage, data security and management.
With AI revamping Dell and Hewlett-Packard their top and bottom lines should be secure making them two of the more intriguing value stocks to consider in the tech sector. Notably, both sport an “A” Zacks Style Scores grade for Value with Dell’s stock trading at 12.1X forward earnings and Hewlett-Packard shares at just 7.9X.
Furthermore, Dell has now surpassed earnings expectations for seven consecutive quarters with Hewlett-Packard topping EPS estimates in its last four quarterly reports. Dell’s stock currently covets a Zacks Rank #1 (Strong Buy) and will be reporting its fourth quarter earnings for fiscal 2023 at the end the month with Hewlett-Packard sporting a Zacks Rank #2 (Buy) and set to release Q1 results for FY24 in early March.
Image Source: Zacks Investment Research
Palantir’s Surge After AI Boost Revenue
Reporting its Q4 results after hours on Monday, Palantir Technologies (PLTR - Free Report) is certainly a company with AI capabilities that will be on more investors' radars. Palantir’s stock popped +30% in today's trading session to $21 a share as demand for its AI Platform (AIP) led to Q4 sales rising 19% to $608.35 million. This beat estimates by roughly 1% and put analysts with bearish views and short-sellers to sleep causing a short squeeze. It's noteworthy that Palantir's stock currently has an "A" Zacks Style Scores grade Growth.
Image Source: Zacks Investment Research
To that point, Palantir has started to prove that demand for its AIP is very real and driven by its machine learning capabilities or Large Language Model (LLM) which is an AI algorithm that employs neural network techniques with an extensive number of parameters to process and understand human languages and text.
These LLMs can be critical to building Palantir’s software that assists in counterterrorism investigations and operations. Palantir's U.S. commercial revenue was up 40% and the U.S. government has been one of its main clients due to the company’s advancement in defense intelligence. Palantir reported Q4 net income of $93.4 million which more than tripled from $30.9 million a year ago. Earnings of $0.08 a share came in line with the Zacks Consensus and doubled from $0.04 a share in the prior-year quarter.
Palantir’s stock currently lands a Zacks Rank #3 (Hold) and a buy rating could be on the way as annual earnings estimate revisions are likely to go up in the following weeks.
Image Source: Zacks Investment Research
Bottom Line
With Dell’s stock still under $100 and Hewlett-Packard and Palantir shares trading under $25, these are three of the more affordable and promising "AI" stocks to consider. They should also be viable investments for 2024 and beyond as the AI revolution continues to accelerate.