Two AI stocks as the world embraces technology at an exponential rate

Highlights:

• NVIDIA is a technology company that specializes in graphics processing units (GPUs) and other computer hardware.
• Investors explore AI (Artificial Intelligence) stocks for several reasons. One of the primary reasons is that AI technology has revolutionized many industries.
• Enterprise artificial intelligence business C3.ai offers software-as-a-service programs.

Due to ChatGPT, a chatbot developed by OpenAI, being incredibly popular over the past several months, interest in artificial intelligence (AI) applications has increased substantially. IT behemoths are now rushing to create their own AI applications that can generate content such as photographs, videos, prose, poetry, and code, sparking an AI arms race among them.

Investors explore AI (Artificial Intelligence) stocks for several reasons. One of the primary reasons is that AI technology has revolutionized many industries, including healthcare, finance, and transportation thus opening up many opportunities.

Let’s look at some stocks trading in the US equities markets that are known for their strong tech capabilities.

NVIDIA Corporation (NASDAQ: NVDA)

NVIDIA is a technology company that specializes in graphics processing units (GPUs) and other computer hardware. In recent years, NVIDIA has become a major player in the AI (Artificial Intelligence) industry thanks to its development of high-performance GPUs that are well-suited for AI applications.

As part of its AI-as-a-service offering, NVIDIA has partnered with top cloud service providers to give businesses access to its cutting-edge AI platform.

In Q4 2023, NVIDIA's revenue was US$ 6,051 million, up two per cent quarter-over-quarter (QoQ). The gross margin is up 10 points to 66.1 per cent.

The company's net income also jumped from US$ 680 million in Q3 2023 to US$ 1,414 million in Q4 2023. Meanwhile, the diluted earnings per share were up 111 per cent QoQ to US$ 0.57.

C3.ai Inc. (NYSE: AI)

Enterprise artificial intelligence business C3.ai offers software-as-a-service programs that let users access Enterprise AI applications on any kind of infrastructure.

C3.ai's total revenue in Q3 2023 was US$ 66.7 million, which exceeded the company's guidance of US$ 63 million to US$ 65 million.

The GAAP gross profit was US$ 44.4 million, and the non-GAAP gross profit was US$ 51 million. Also, the company and Google Cloud closed deals with eight new customers and expanded their joint pipeline.

The guidance for total revenue in the fourth quarter of 2023 is between US$ 70 to US$ 72 million.