Top AI Stocks to Invest in This December
In the dynamic landscape of artificial intelligence (AI), investors seek both promising and grounded opportunities. Amidst a sea of options, three standout AI stocks to buy present themselves as prudent investments: Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Procore (NYSE: PCOR), and Accenture (NYSE: ACN). These companies offer stability and growth potential, making them ideal for those looking to delve into AI without succumbing to excessive hype.
Alphabet
Alphabet, the well-known parent of Google, is a frontrunner in the AI arena. Its recent launch of the Gemini generative AI model has set new standards, significantly outshining its rivals. Gemini’s leading-edge capabilities position it as a go-to framework for developers in generative AI applications.
Alphabet’s robust presence in the advertising market, contributing to 78% of its revenue, provides a safety net for investors. This diversification ensures Alphabet’s resilience even if AI advancements don’t meet industry expectations. The company’s financial health is evident in its rising earnings per share (EPS), which grew from $1.06 to $1.55 in the third quarter. Trading at 20 times its 2024 earnings, Alphabet presents a valuable investment for both AI enthusiasts and general investors.
Procore
Procore Technologies offers a transformative construction management software, simplifying coordination among project stakeholders. This software centralizes communication, streamlining processes from engineering changes to budget and progress monitoring, thereby reducing errors and inefficiencies.
Despite the construction industry’s late adoption of technology, Procore’s software represents a significant digital leap forward. Procore’s introduction of an AI-driven copilot to enhance efficiency marks its entry into the AI domain. The copilot is designed to save considerable time, with an estimated 18% of project time currently spent on data retrieval.
Financially, Procore is flourishing. Its revenue surged by 33% year-over-year in Q3, reaching $248 million, and it reported $22 million in free cash flow. The company sees immense growth potential, having tapped only a fraction of the global construction market. This untapped potential makes Procore an attractive option for investors.
Accenture
Accenture plays a crucial role in integrating AI into various business operations. As a leading consultancy with over 700,000 employees, it assists firms in strategizing, developing, and maintaining AI solutions.
With generative AI set to revolutionize industries, Accenture’s expertise in implementing large language models and capturing business data is invaluable. The company’s growth slowed in 2023 due to cautious resource allocation by clients. However, with projections of revenue growth between 2% and 5% for the fiscal year 2024 and a 6% to 9% increase in EPS, Accenture demonstrates its robust business model.
Accenture’s ability to bridge the AI expertise gap for many companies positions it as an essential investment in the current market.
