Best stocks to invest in today? 2 AI stocks to keep an eye on

The Artificial Intelligence sector represents companies that develop and implement AI technologies in various industries. These companies range from tech giants to specialized startups focused on machine learning and automation. AI stocks offer investment opportunities in companies that are changing the way companies operate and decisions are made. The sector has gained significant attention due to AI's potential to transform industries from healthcare to transportation.

Investing in AI stocks can give you exposure to one of the fastest-growing technology segments. Many AI companies are at the forefront of innovations in data analysis and automation. Some established AI firms have strong partnerships with large companies that provide stable revenue streams. However, the sector poses significant risks. Many AI companies are still in the development phase and are not yet profitable. Competition is fierce, with both established tech companies and new startups vying for market share. Regulatory concerns and ethical considerations could impact the development and adoption of AI.

When evaluating AI stocks, consider the company's practical applications and market readiness. Check out their intellectual property portfolio and research and development capabilities. Assess their ability to effectively commercialize AI solutions. Note that many AI stocks are trading at higher valuations, reflecting high growth expectations. Consider the company's competitive advantages in specific AI applications. With that in mind, let's look at two AI stocks to watch in the stock market today.

AI stocks to invest in (or avoid) today

• Palantir Technologies Inc. (NYSE:PLTR)
• Salesforce Inc. (NYSE:CRM)

Palantir Technologies (PLTR Stock)

First, Palantir Technologies Inc. (PLTR) is a software company specializing in big data analytics and artificial intelligence platforms. You develop solutions for complex data analysis, especially for government agencies, defense ministries and large corporations. Palantir's platforms help companies integrate, visualize and analyze large amounts of data to make better decisions. The company offers both government-focused (Gotham) and commercial (Foundry) platforms.

Just this week, Palantir announced better-than-expected financial results for the third quarter of 2024. Specifically, the company had earnings of $0.10 per share and revenue of $725.52 million. This compares to Wall Street's estimates for the quarter, which called for EPS of $0.09 and revenue estimates of $705.10 million for the third quarter of 2024. Additionally, the company said it expects fourth-quarter 2024 revenue to be between $767.0 million and $771.0 million.

Year-to-date, shares of PLTR stock are up a whopping 203.26%. During Tuesday morning's trading session, Palantir stock was up 21.38% on the day and is currently trading at $50.33 per share.

(Read more) 2 Tech Stocks to Watch in November 2024

Salesforce (CRM stock)

Salesforce Inc. is a global leader in customer relationship management (CRM) software and cloud-based business solutions. They offer a comprehensive suite of sales, service, marketing and business analytics applications through their cloud platform. The company is focused on helping companies digitally transform their operations and better connect with their customers.

Late last month, Salesforce announced the general availability of Agentforce, a new AI platform layer for building autonomous business agents. The platform allows companies to create AI agents that can independently complete sales, service, marketing and trading tasks. Salesforce reported that companies like OpenTable, Saks and Wiley are already using Agentforce to improve their operations. The platform includes pre-built agents that can be customized using low-code or no-code tools. Agentforce Service Agent, the first generally available pre-built agent, is designed to handle customer support tasks.

So far this year, shares of Salesforce stock are up 15.68% year-to-date. Additionally, CRM stock traded slightly down 0.57% during Tuesday's morning trading session and is currently trading at $296.30 per share.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.