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Alphabet has clearly positioned itself as a leader in AI.
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Salesforce is building a strong foundation to lead in agentic AI.
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UiPath has a significant chance to evolve into an agent-based AI orchestration platform.
Despite the ongoing tech stock surge, there are still worthwhile options within the sector. Let’s dive into three promising tech stocks available for purchase right now.
Alphabet (NASDAQ:GOOG) has taken a strong lead in artificial intelligence as it approaches 2025. Their Gemini project is gaining traction as a top-tier large-scale language model integrated into Google Search, driving both query and revenue growth. Additionally, their cloud computing segment is witnessing impressive growth, with revenue up 34% and operating profit soaring by 85% in the last quarter.
A major factor in Alphabet’s success is their custom AI chip known as the Tensor Processing Unit (TPU). They’ve been working on these chips for over a decade, and they now run most of Alphabet’s internal tasks, including training for Gemini. This gives them a notable cost edge in the AI sector, and it seems that this advantage will only broaden with time.
Interestingly, other firms are starting to utilize Alphabet’s TPUs to handle their AI workloads. For example, Anthropic has placed a substantial order, and Broadcom is integrating these custom chips into Google Cloud. Analysts at JP Morgan have estimated that for every 500,000 TPUs put to use, Alphabet could generate around $13 billion in revenue, adding yet another engine for growth.
While many semiconductor firms have profited from the mainstreaming of AI, software-as-a-service (SaaS) companies haven’t had the same fortune due to investor concerns over potential AI disruptions. However, Salesforce (NYSE:CRM) appears to be making strategic moves to position itself as a top player in agentic AI. These AI agents can perform tasks with minimal to no human oversight.
What’s interesting is that AI seems to thrive on clean, organized data rather than unstructured data as initially thought. Salesforce excels at dismantling data barriers within organizations. Their new Data Cloud (formerly Data 360) enables data sourcing from cloud providers like Snowflake. Coupled with the acquisition of Informatica, they’ve established a platform that serves as the primary record for organizational data from which AI agents can effectively operate. This may help mitigate AI misconceptions and enhance Salesforce’s standing in agentic AI.
The opportunity in agentic AI is vast, and Salesforce is well-positioned within this realm. Considering the recent dip in stock prices, this could be an ideal time to invest. Currently, the company’s stock carries an anticipated price/sales multiple of around 5 and an expected price/earnings ratio of 19.
Another organization capitalizing on the rise of AI agents is UiPath (NYSE:PATH). Their Maestro platform allows users to create AI agents without coding, but their primary strength lies in its orchestration capabilities, managing agents from various third-party vendors, including Salesforce.
UiPath has established itself as a leader in robotic process automation (RPA), which uses software bots for tasks such as data entry. This groundwork includes governance and compliance tools for managing non-human identities (NHI). It’s noteworthy that the platform facilitates the assignment of tasks to the most suitable agents or bots, which is crucial because software bots are often a more cost-effective alternative for simpler, rule-based tasks than AI agents.
As managing AI agents from diverse vendors becomes increasingly critical, UiPath stands out as a solid choice in this space. They’re still early in their transition to an AI orchestration platform, yet revenue growth accelerated last quarter, and their stock is relatively affordable, trading at under 5 times forward P/S and about 21 times forward P/E.
If you’re considering investing in Alphabet, you might want to weigh the following:
According to our analysis team, there are ten stocks that might offer better returns than Alphabet. These stocks are projected to see impressive growth over the next few years.
Now, reflecting on past recommendations like Netflix and Nvidia shows how some choices have led to substantial gains for early investors.
To summarize, the average return from our stock advisor is about 958%, which significantly outpaces the S&P 500’s 196% return. This could be a great opportunity to join a community focused on retail investors.
