3 AI Stocks with Explosive Growth to Buy Now

artificial intelligence (A.I) is here to stay as the range of AI applications expands. Many analysts believe AI growth stocks have a lot of potential. This is despite already generating impressive returns. Even the most enthusiastic analysts admit that how it can be monetized has yet to be realized.

A recent Bloomberg Intelligence report suggests that generative AI alone could become a $1.3 trillion business over the next ten years. This implies a 42% compound annual growth rate (CAGR). Large language models, digital advertising, and demand for specialized software services are among the applications that are expected to grow explosively in the medium to long term.

Many software companies likely won't see a return on their investment in AI until next year. However, these investments have boosted demand in other sectors, such as chip makers, semiconductor manufacturers, data center infrastructure specialists and other service providers.

This means that there are many AI stocks with explosive growth potential, including relatively inexpensive AI growth stocks that may offer higher upside. Here are three such AI growth stocks.

Intel (INTC)

Intel (Nasdaq:INTC) is one of the companies focused on capturing growth opportunities in the AI ​​market. The chipmaker lost server CPU market share over the years and was slower than rivals to expand its AI product portfolio.

Nevertheless, Intel has regained momentum with three consecutive quarters of increasing server CPU market share, now at 64 percent. of AMD (Nasdaq:AMD)33% Recently, it launched its new Xeon 6 line of processors targeting the AI ​​sector, which it currently dominates. Nvidia (Nasdaq:NVDA) and AMD.

The company is working to streamline operations and grow revenue faster than sales. Last quarter, its client computing division, which supplies CPUs for consumer devices, saw revenue rise 31 percent. Intel also increased gross margin, indicating strong profitability.

Analyst sentiment has turned more positive, with the majority now rating Intel stock a buy. The average price target is $38.67, indicating a 26% upside potential. Intel is undervalued at a price-to-earnings (P/E) ratio of 31.7x, compared to a 47.8x multiple for the broader tech sector. This combination earns Intel a spot as one of the AI ​​growth stocks to buy.

RIOT Platforms (RIOT)

gave Bitcoin (BTC-USDMining Company Riot platforms (Nasdaq:Riots) demonstrates the potential of AI and how it can enable unexpected business changes that are difficult to predict. Due to reduced mining rewards from the Bitcoin halving, small crypto miners have struggled to maintain profitable operations.

However, AI demands significant computing power. Riot Platforms owns the computing resources. Bitcoin (BTC-USD) mining and data center infrastructure available. Last year, it began supplying excess power to the electrical grid through ERCOT's distribution platform, generating revenue from “saved” power. The company also said it would look into supplying computing power to the AI ​​sector.

Currently, Riot is pursuing platform acquisitions Bitforms (Nasdaq:BITF) to realize economies of scale upon infrastructure expansion and completion. Trading at a P/E ratio of 23.4x, Riot Platforms' valuation is relatively low compared to the tech industry. All analysts recommend RIOT stock as a buy and forecast an average target price of $18.14 per share, indicating an upside potential of more than 93%. Combined with the rest, this explosive growth makes RIOT one of the AI ​​growth stocks to buy.

OPRA

gave Oprah (Nasdaq:Opera) web browser has been popular among technology enthusiasts, though its market share has overtaken that of Chrome. Still, Opera's focus on AI integration is noteworthy.

Earlier this year, the company invested more than $20 million to build an AI computing cluster powered by renewable energy in Iceland. This makes it the first and currently the only browser designed with on-device AI capabilities. Since implementing this AI strategy, the company's average revenue per user has increased by 24%. Further developing AI features could potentially broaden Opera's appeal.

While Opera's financials haven't fully benefited as one of the AI ​​growth stocks, analysts recognize the company's potential. OPRA stock is trading below analyst expectations with a P/E ratio of just 7.4x while boasting an unusual dividend yield of 5.9% for a technology company.

Analyst ratings are unanimously positive, with the average price target representing more than 60% upside from current levels. Opera's focus on AI integration positions it for significant growth as the potential of AI applications continues to be realized.

At the date of publication, Stavros Tousios had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com. Publication Guidelines.

At the date of publication, the Editor-in-Chief had no position (direct or indirect) in the securities mentioned in this article.