These three artificial intelligencestocks will outperform Nvidia over the next five years

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Nvidia’s stock has gone up more than seven times since the end of the third quarter of 2022, but it is now getting close to a correction. The stock may drop even more. When Nvidia’s stock price goes down, investors may be dying to buy. In the long run, that might be a good idea. There are, however, other stocks in artificial intelligence (AI) to think about. Over the next five years, the following three AI stocks will do better than Nvidia.

Alphabet

The AI boom has been great for Alphabet, which owns Google. In the last year, its shares have gone up more than 40%. While Nvidia’s performance is much better, Alphabet may be able to pick up speed while Nvidia slows down.

Value is an important thing to think about. Google’s price-to-sales ratio is less than 6.5, while Nvidia’s is almost 35x sales. Yes, I am sure that Nvidia will have better sales growth than Alphabet in the coming years. But Nvidia stock is priced for perfection, and most businesses don’t stay perfect for long.

Some investors think that Alphabet isn’t very good at AI now that its generative AI models got it in trouble with the public. But don’t forget how good the company is at AI. Apple might add Google Gemini to its iPhones. If this happens, I think it will be a huge boost for Alphabet stock.

I also believe that Waymo will help Alphabet grow a lot over the next five years. Cathie Wood’s Ark Invest predicts that the robotaxi market will reach a valuation of over $10 trillion by the early 2030s. Even though I’m not very hopeful, I still think this market will grow and Waymo will benefit the most.

UiPath

Megacap monsters aren’t the only ones with exceptional AI stocks. UiPath hasn’t had as many great returns over the last year as Nvidia has, and it hasn’t been able to keep up with Alphabet and Meta either. UiPath could get much bigger over the next five years, though, since its market value is only $12.4 billion right now.

UiPath is the best AI stock to buy right now. One important thing that helped me decide how small it was. What’s more, I see UiPath as an AI company that is on the rise and just starting to grow.
When it comes to robotic process automation (RPA), UiPath is the market leader. This market is growing very quickly. It’s no surprise that UiPath continues to have amazing sales growth. In Q4, revenue jumped 31% year over year to a record high. It also started making money for the first time, which was a big step that could lead to faster stock gains.

AI is improving rapidly, allowing the company to automate business tasks it couldn’t do before. UiPath is capitalizing on this opportunity. When it was released last year, TIME magazine called Clipboard AI one of the best inventions of 2023. In the fourth quarter, UiPath also released its AI-powered assistant, AutoPilot.

Meta Platforms

Meta Platforms has proven to be one of the most successful megacap stocks outside of Nvidia. About 140% of the company’s value has gone up in the last year, and I think Meta still has more room to grow.

Meta is using its own AI chips to become less reliant on Nvidia’s GPUs, just like many other large tech companies. Meta, along with some of its competitors, is worth more than Nvidia.

Nvidia is facing more and more competition, but Meta might do better with less of it. The U.S. Congress is debating a bill that would compel Bytedance to cease using TikTok or risk a real ban in the U.S.

However, I do not believe that Meta requires a ban from TikTok to surpass Nvidia in the upcoming five years. This past year, Mark Zuckerberg, CEO of Meta, said that business messaging would be the company’s “next major pillar.” He recently said that putting AI assistants into smart glasses could be Meta’s “killer app.” I think Zuckerberg is right about both of these points.