3 Growth Stocks That AI Is Loving in July

Source: Phonlamai Photo / Shutterstock.com

Artificial Intelligence (AI) has received incredible attention this year due to the release of OpenAI’s advanced chatbot, ChatGPT.  But ChatGPT is fortunately not the only chatbot to be released. Many developers have released their own version of the AI including Bing ChatGPT, Jasper, Perplexity AI and You Chat. For this article, I decided to ask Bing ChatGPT for its top 3 growth stock picks for this month.

The results are, in general, insightful but not without their quips. For instance, Bing ChatGPT recommended me a stock called ‘Applied Digital’ that ‘specializes in biometric security’ and creates microchips. However, the only equity with the corporate name Applied Digital (NASDAQ:APLD) is a digital infrastructure solutions company based in Texas.

Nevertheless, after another try, the results remained promising.

Amazon (AMZN)

In the United States, Amazon (NASDAQ:AMZN) is well-known for being many people’s go-to e-commerce service. And the company definitely fits that mold, ending 2022 with 168 million Amazon Prime members.

Amazon’s services, of course, go beyond ecommerce. In fact, the company has also garnered dominant market positions in cloud computing, online advertising, and streaming services.

Despite facing challenges in 2022, including supply chain bottlenecks and a difficult macro environment, Amazon could bounce back in the latter half of 2023. The company is expected to benefit from the robust consumer spending seen in the services sector this year. Furthermore, demand for AWS cloud services amongst enterprises remains steady, while recently launched services such as Amazon Pharmacy and Amazon Luna have untapped potential.

Despite many Wall Street analysts estimating Amazon will grow its revenue by only 9.1%, the stock maintains a consensus “Strong Buy” rating and a 12-month price target of $142.82, implying a 10% upside from its current price of $129.78.

SolarEdge Technologies (SEDG)

SolarEdge Technologies (NASDAQ:SEDG) is a leading provider of solar power optimization and monitoring solutions. The company sells power optimizers, inverters, batteries, chargers, and software that enable solar panel owners to maximize their energy production and efficiency.

SolarEdge has a global presence in more than 130 countries and serves residential, commercial, and industrial customers.  Driven by the increasing demand for clean energy and the declining cost of solar power, SEDG has maintained solid YoY revenue growth and positive net income over the past five years.

SolarEdge’s stock has been volatile this year due to sustained supply chain disruptions and competitive pressures. However, these headwinds are likely to be short-term, and SolarEdge’s long-term growth prospects remain bright. The company is well-positioned to benefit from the secular trend of renewable energy adoption, especially as governments implement policies and incentives.

SolarEdge is also diversifying its product portfolio and expanding into new markets such as electric vehicle (EV) management, grid services, and energy storage. Analysts expect SolarEdge to grow its EPS by an average of 31% annually over the next five years.

Booking Holdings (BKNG)

Booking Holdings Inc. (NASDAQ:BKNG) is the world’s leading online travel agency, operating Booking.com, Priceline.com, Kayak.com, and Agoda.com. During the COVID-19 pandemic, Booking had been severely impacted as many countries imposed lockdowns and travel restrictions, ultimately resulting in a sharp decline in global travel demand and revenue. However, the company has shown signs of recovery since these restrictions have been lifted worldwide.

In 2021 and 2022, respectively, revenue growth was in the high double-digits at 61% and 56% YOY. The stock has also rebounded by more than 50% in the 12 months, reaching a new high of $2,780 in May 2023. For this year, BKNG’s shares are up nearly 30%.

Analysts expect the company to benefit from the pent-up demand for travel in the post-pandemic era, with a consensus price target of $2,892, representing a 10% potential upside from the current level.

On the date of publication, Tyrik Torres did not have (either 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.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest stocks updates
straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.

x Logo: Shield Security
This Site Is Protected By
Shield Security