Five AI stocks to consider in June: IBM, MU, AMAT, AI & ADBE

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Highlights

  • International Business Machines Corporation (NYSE: IBM) has a dividend yield of 4.74% and an annualized dividend of US$6.60. 
  • Micron Technology, Inc. (NASDAQ: MU) manufactures DRAM for PCs. On May 11, MU announced surpassing 50,000-lifetime patents.
  • Applied Materials, Inc's (NASDAQ: AMAT) net sales rose 12% YoY for the quarter ended May 1, 2022. Its P/E ratio is 15.93, and its dividend yield is 0.87%. 

Technological advancements in AI, machine learning, IoT, robotics, blockchain, etc., have disrupted every industry. Artificial Intelligence stocks are companies that provide clients with AI technology to improve their products and services and gain a competitive edge.  

Yet, there are rarely pure-play AI companies in the market. Some of the AI companies include Google parent Alphabet Inc. (GOOGL) (GOOG), Amazon.com, Inc. (AMZN), Meta Platforms, Inc. (FB), and NVIDIA Corporation (NVDA). Here we discuss five AI stocks that gave positive returns.

International Business Machines Corporation (NYSE: IBM)

Closing price on May 27, 2022: US$139.27
Price range in the last 52 weeks: US$152.84 to US$114.56

IBM is a large technology company engaged in almost every aspect of enterprise IT needs. It sells hardware, software, IT services, and consulting.

The company uses AI to increase human efficiency, lower costs, etc. For example, its AI technology is used to devise personalized plans in the healthcare system. This B2B company operates in more than 170 countries and employs 350,000 people worldwide. 

On May 25, the Abu Dhabi-based Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) announced plans for a strategic collaboration with IBM to advance fundamental AI research and address the challenges of humanity.

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For the quarter ended March 31, 2022, its revenue was US$14.2 billion, up 8% YoY compared to US$13.19 billion in the previous year.

Its net income came in at US$733 million or US$0.81 per share diluted compared to US$955 million or US$1.06 per share diluted in the March quarter of 2021.

The stock has a market capitalization of US$125.26 billion, Its P/E ratio is 22.83, and the forward P/E for one year is 14.08. IBM has a dividend yield of 4.74% and an annualized dividend of US$6.60.

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C3.ai, Inc. (NYSE: AI)

Closing price on May 27, 2022: US$19.73
Price range in the last 52 weeks: US$76.85 to US$13.37

C3.ai Inc is an artificial intelligence company for enterprises and a pure-play AI stock. It is a software-as-a-service (SaaS) company which enables clients to develop, deploy, and operate enterprise-grade AI applications. It's three AI solutions are C3 AI Suite, C3 AI Applications, and C3.ai Ex Machina.  

It will release its fiscal year results on June 1, 2022. 

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For the quarter ended January 31, 2022, it reported total revenue of US$69.8 million, an increase of 42% YoY, compared to US$49.1 million in the same quarter a year ago.

C3.ai incurred a net loss of US$39.5 million or US$0.38 per share diluted compared to the net loss of US$16.85 million or US$0.23 per share diluted in the January quarter of 2021.

The stock has a market capitalization of US$2.1 billion.

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Adobe Inc. (NASDAQ: ADBE)

Closing price on May 27, 2022: US$428.22
Price range in the last 52 weeks: US$699.54 to US$370.27

Founded in 1982, Adobe provides content creation, digital marketing, advertising software, and document management services. Adobe Sensei is an Adobe AI tool for live search, product recommendations, optimization, budget forecast, and high-quality content and delivery.

For the first quarter ended March 4, 2022, the company’s revenue was US$4.26 billion compared to US$3.91 billion in the corresponding quarter of the previous year.

Its net income came in at US$1.27 billion or US$2.66 per diluted share compared to US$1.26 billion or US$2.61 per diluted share in the March quarter of 2021. 

The stock has a market capitalization of US$202.33 billion. Its P/E ratio is 42.52, and the forward P/E for one year is 38.65. 

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Micron Technology, Inc. (NASDAQ: MU)

Closing price on May 27, 2022: US$73.32
Price range in the last 52 weeks: US$98.45 to US$65.67

Micron Technology Inc. is focused on designing and manufacturing DRAM for PCs. It has also expanded into the NAND flash memory market. Its DRAm and NAND products are used in PCs, smartphones, game consoles, data centers, automotive, and other computing devices.

On May 11, Micron announced crossing the 50,000-mark for lifetime patents.

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The company reported revenue of US$7.79 billion for the quarter ended March 3, 2022, compared to US$6.24 billion for the same quarter in 2021.

The net income of the company was US$2.26 billion or US$2.0 per share diluted compared to US$0.603 billion or US$0.53 per share diluted in the March quarter of fiscal 2021.  

The stock has a market capitalization of US$81.87 million. Its P/E ratio is 9.22, and the forward P/E for one year is 8.01. MU has a dividend yield of 0.55% and an annualized dividend of US$0.40.

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Applied Materials, Inc. (NASDAQ: AMAT)

Closing price on May 27, 2022: US$119.48
Price range in the last 52 weeks: US$167.06 to US$101.33

Applied Material Inc supplies semiconductor manufacturing equipment and material engineering solutions to help make chips. Its systems are used in almost all chip-making processes barring a few exceptions, such as lithography. 

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For the three months ended May 1, 2022, its net sale was US$6.25 billion, a 12% increase YoY compared to US$5.58 billion in the same quarter a year ago.

The net income was US$1.54 billion or US$1.74 per share diluted compared to US$1.33 billion or US$1.43 per share diluted in the May quarter of 2021. 

The stock has a market capitalization of US$103.94 million, its P/E ratio is 15.93, and the forward P/E for one year is 15.85. AMAT has a dividend yield of 0.87% and an annualized dividend of US$1.04.

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Bottom line:

The Nasdaq Composite Index fell 3.23% in a month but was up 7.69% last week. Due to various macroeconomic factors, the technology stocks have been volatile in recent months. Hence, investors should carefully analyze the stocks before spending on them.



 


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