3 AI Stocks That Could Skyrocket Your Wealth

Larry Ramer

Tue, Jun 20, 2023, 6:18 AM 4 min read

Bloomberg TV anchor Lisa Abramowicz often refers to “AI hype” and “the frenzy over AI,” implying that investor enthusiasm for the technology is excessive and unwarranted. However, I strongly believe that AI will significantly transform the majority of companies, backed by compelling evidence. As a result, I think that investors can profit tremendously over the long term by purchasing high-quality, high-growth AI stocks.

AI is such a potent force because it can help companies tremendously on both the supply side and the demand side, greatly boosting firms’ top and bottom lines. On the supply side, the technology enhances “the efficiency of overall operations, [cuts] costs and [raises] customer satisfaction.” On the demand side, it enables companies to suggest and promote the optimal products to the best potential customers and current customers.

Because AI is such a valuable tool for companies, many firms are going to prosper significantly from the technology. Here are three of the best AI stocks for long-term investors to buy.

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BMY	Bristol Myers-Squibb	$66.16
INTC	Intel	$36.37
AMAT	Applied Materials	$138.93

Bristol Myers-Squibb (BMY)

Bristol-Myers (BMY) logo at the top of a cellphone.

Source: Piotr Swat / Shutterstock.com

Bristol Myers-Squibb (NYSE:BMY) has formed a comprehensive partnership with Schrodinger (NASDAQ:SDGR) to leverage their physics and AI-based technology for accelerated drug discovery. Moreover, Schrodinger says that its platform lowers the cost of the process and increases the chances of producing an effective drug.

Schrodinger has signed a multi-year partnership with BMY to advance small molecule therapeutics in oncology, immunology, and neurological disorders.

Schrodinger’s collaboration with Nimbus Lakshmi resulted in a drug currently being evaluated for multiple autoimmune diseases after positive Phase 2b results in psoriasis. A huge Japanese drug maker, Takeda (NYSE:TAK), recently bought Nimbus Lakshmi, resulting in a $11.3 million windfall for Schrodinger. Moreover, “Two Phase 1 studies of Schrodinger’s blood cancer treatment, SGR-1505, have also been launched.”

Based on the power of AI and the collaboration with Schrodinger, BMY stock is expected to receive a significant boost. As a result, I believe that BMY is one of the best high-growth AI stocks to buy right now.

Intel (INTC)

The Intel logo in blue on a black screen.

Source: Kate Krav-Rude / Shutterstock.com

According to a widely-circulating report, Intel (NASDAQ:INTC) plans to utilize a “giant new AI supercluster.” The supercluster will use Intel’s Gaudi semiconductors, which offer a more cost-effective AI training solution compared to Nvidia’s (NASDAQ:NVDA) chips.

This supercluster has big revenue potential for Intel, due to Nvidia’s supply constraints on AI chips. Reportedly, the large size of the supercluster will enable Intel to “target larger customers and specific use cases.”

Given all of these points, I’m confident that this supercluster is going to be very profitable for INTC over the longer-term. That’s saying nothing of Nvidia’s expressed openness in partnering with Intel for chip manufacturing. Positive test chip results have led to discussions between the two companies, with Intel potentially producing a significant quantity of AI chips for Nvidia down the road. That’s a big deal.

Applied Materials (AMAT)

Applied Materials company sign outside office

Source: michelmond / Shutterstock.com

As I noted in a previous column, Applied Materials (NASDAQ:AMAT) provides equipment used to create computer chips. As a result, it’s very well-positioned to benefit from the huge future increase in the number of total chips needed to create AI applications and platforms.

Applied Materials reported strong financial results on May 18, with earnings per share (excluding certain items) increasing 8% year-over-year to $2, and cash from operations reaching $2.29 billion.

JPMorgan responded to the news by increasing its price target on AMAT stock to $145. Noting that Applied Material’s backlog had reached record levels, the firm reiterated an overweight rating on the shares.

Applied Material’s recent report highlighted significant gains from its equipment sales to IoT, communications, automotive, power, and sensor companies. The company’s CFO Brice Hill expressed confidence in the durability of its business, aligning with stable and long-term market demand trends.

As of the date of publication, Larry Ramer owned shares of INTC and SDGR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.