The Top 3 AI Stocks to Watch for Big Gains in 2023

Stocks to buy

With many investors looking for ways to capitalize on the potential of AI stocks, this article will look at some of the hottest opportunities out there. After all, the global AI market, worth $119.78 billion in 2022, is forecast to skyrocket to $1,597.1 billion by 2030, with an impressive CAGR of 38.1% over the same period, according to Precedence Research. Better, the AI stocks on this list are trading at a fraction of their highs.

Intuitive Surgical (ISRG)

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Founded in 1995, Intuitive Surgical (NASDAQ:ISRG) has become one of the leading providers of robotic-assisted surgical systems, instruments, and accessories. Its products are used in various procedures, including gynecological, urological, general, colorectal, and head and neck surgeries. Intuitive Surgical aims to make surgery less invasive and improve patient outcomes.

Along the way, the company has developed technologies such as the da Vinci Surgical System, allowing surgeons to perform complex procedures with greater precision and control. Nowadays, Intuitive is taking steps to combine the power of big data and AI to develop incredible tools that could revolutionize the medical world. One example is real-time guidance for surgeons or enhanced training modalities.

At the moment, we are just getting started with the potential of surgical robots. According to Grand View Research, in 2022, the market size of these robots was $4.4 billion, and it is projected to grow at a compound annual growth rate of 18% from 2023 to 2030. All of this makes Intuitive Surgical a very attractive stock when it comes to AI stocks.

Workday (WDAY)

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Workday (NASDAQ:WDAY) is a cloud-based application provider focused on human capital management. It provides various services, including payroll, talent acquisition, and recruiting. It has also developed a proprietary AI-based engine that optimizes businesses’ operations to help manage shift scheduling, staffing, prioritizing tasks, and predicting labor demand.

Price momentum for the stock remains sluggish, though. As of this writing, the stock has increased by about 10% for the year. There are a couple of reasons for this. Thus far, investors have favored deep-value stocks like energy producers over the once-popular growth stocks. As a result, companies that prioritized “growth at any cost” have not been so well received. One example is Workday which has historically found it challenging to make a profit.

The bears also question Workday’s ability to navigate a difficult business environment, given its IPO in 2012, before any prolonged recession. There is an open question about whether they can maintain their extraordinary growth rate during a recession. However, no one can deny Workday is a success when it comes to growth. For 2022, Workday saw an impressive 19.01% rise in revenue, totaling $5.139 billion. For fiscal 2023, Workday’s subscription revenue guidance is between $5.555 billion to $5.557 billion, which indicates a 22% growth compared to last year.

Alphabet (GOOG, GOOGL)

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Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is a global leader in the tech industry, with its various subsidiaries and products ranging from search engines to artificial intelligence. In fact, the tech giant widely uses AI and automation in almost all its operations, including the improvement of customer experiences, automating processes, and generating insights. In addition, it is also perhaps the best time to buy Alphabet stock. The company suffered a major financial blow in early Feb. after its chatbot demonstrated an incorrect response during a promotional video. This resulted in a staggering $100 billion drop in its market value.

This presents a great opportunity for investors who are looking for a bargain. Alphabet shares don’t usually come with a discounted price tag, making this a unique chance to get in on the action.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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