VQS:CC - 3 Top Artificial Intelligence Stocks to Buy in March
2024-03-11 21:00:00 ET
Artificial intelligence (AI) stocks are the ones to beat these days. While no one can figure out exactly which company will end up as the leader among AI stocks, for now there are many at least latching on for the ride.
Some include these three AI stocks that I’m going to cover. However, there’s a difference. These aren’t one-and-done stocks. Instead, they’re long-term holds that are just simply getting a boost from the AI craze. So let’s get into them and why investors should consider them a buy this March.
OpenText
OpenText ( TSX:OTEX ) stock is one of the top ways to be involved indirectly with AI. The company incorporates it within their core enterprise information management (EIM) software and solutions, using it for many functions.
Some of these include data analytics, to look at large amounts of information from different sources and provide valuable insights. It helps with repetitive tasks to improve efficiency and human error. AI is also being used for content management, including categorizing, managing information, and even creating content for internal use.
Analysts are now generally positive about OpenText stock, and provide a potential upside around 25%. This comes after the company demonstrated strong earnings, with record total revenue at $1.5 billion. That was a 71% increase year over year! This included annual recurring revenue of $1.1 billion, and record quarterly enterprise cloud bookings. All helped along by AI.
CGI
Another company involved with AI is CGI Group ( TSX:GIB.A ). CGI stock is another of the AI stocks using it to offer AI-powered solutions and services across many industries. The company develops and implements AI solutions across healthcare, finance, and manufacturing. They can help everything from data analysis to fraud detection, and even supply chain optimization.
The company has now positioned itself among AI stocks as a strategic partner for those looking to adopt and integrate AI tech into their own operations. In fact, over 5% of its quarterly sales came from AI-related bookings.
Meanwhile, analysts remain positive about the AI stock as well. Especially after earnings that saw revenue increase by 8.3% year over year, and earnings per share (EPS) up 12.6%. The company continues to demonstrate consistent growth, stemming from a strong track record and fundamentals. CGI stock looks as though it will certainly continue to grow in this environment, especially with AI on their side.
VIQ Solutions
Finally, VIQ Solutions ( TSX:VQS ) is another of the AI stocks to consider in March. The company is far more involved in AI, using it to provide secure AI-driven digital voice and video capture technologies and services. The company works with speech recognition to convert audio to text, speaker identification, and natural language processing.
Before you think this is a social media thing, this technology has been used across many industries. They include law enforcement to record and analyze evidence, healthcare for managing medical consultations, and education to transcribe lectures.
Analysts do believe the stock is limited in its growth due to a smaller market. Further, revenue was down slightly compared to last year, reporting a net loss and negative EPS for the quarter. However, VIQ stock is in its growth stage, so once it achieves profitability, we could see huge results come in for today’s investor. But this is certainly one to only consider if it fits within your risk profile.
The post 3 Top Artificial Intelligence Stocks to Buy in March appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends VIQ Solutions. The Motley Fool recommends CGI. The Motley Fool has a disclosure policy .
2024