Artificial intelligence (AI) is poised to have a significant impact on the global economy and business landscape in the coming years. As investors and traders seek AI stocks to buy, the sustainability of the current AI-driven growth remains a topic of debate. While industry giants like Apple, Microsoft, and Nvidia dominate headlines and investor interest, smaller players with consistent earnings and projected AI-enabled expansion may offer promising long-term returns.
One such stock worth considering is DoubleVerify Holdings (DV), a technology firm that provides data analytics and user authentication services for online companies. By leveraging AI, DoubleVerify enhances fraud detection capabilities and offers AI as a service to optimize digital advertising strategies. The company has consistently increased its earnings per share (EPS) over the past four years and is projected to deliver a 17% sales growth in 2024. Despite potential earnings impact from expanding into new markets like Meta, YouTube, and TikTok, analysts remain positive about DV stock, with an average price target indicating over 45% upside potential.
Zoom (ZM), an internet communications platform company, is another stock to watch. While Zoom gained prominence during the pandemic for its shared-screen meetings, the company has integrated AI into its software to cater to the evolving needs of businesses in hybrid work environments. Although Zoom’s stock price has retreated from its pandemic peak, it now trades at a reasonable price-to-earnings (P/E) ratio of 21.3x for a tech company, below the S&P 500 average. Analysts expect continued growth, with an average price target signaling over 30% upside potential.
Autodesk (ADSK), known for its AutoCAD software, is positioning itself as a leader in 3D AI evolution. The company utilizes generative AI to produce functional 3D shapes and offers a range of products serving industries such as construction, manufacturing, and media. Despite modest share price growth this year, Autodesk stands out due to its low expenses resulting from a subscription-based business model. With a gross profit margin of 92%, the company expects 10% revenue growth in 2024, driven by consistent long-term growth rather than short-term AI trends. Analysts are optimistic about ADSK stock, with the majority recommending buying Autodesk shares.