Got $5,000? These 3 Artificial Intelligence (AI) Stocks Are Still Worth a Low Price

Are you bullish on Artificial Intelligence (AI) but don't want to spend a fortune to hold on to itNvidia) or other big-name AI stocks? There are still some fairly priced AI stocks for investors to consider.

If you have $5,000 to invest and are looking to get some real bang for your buck on the AI investment side, then you should consider putting that amount of money intoRoswell Automation firms(Rockwell) Automation (NYSE: ROK).),Oracle Corporation (Oracle(New York Stock Exchange Stock Code): ORCL(math.) andInternational Business Machines, Inc. (In ternational Business Machines ) (NYSE stock code:IBM). Here are the reasons why these stocks are undervalued.

1. Roswell Automation

Roswell Automation specializes in industrial automation. It automates packaging, helping companies to make and prepare food more consistently and efficiently. It has applications in a wide range of industries, making it a practical AI investment filled with diverse growth opportunities.

While Roswell Automation has a lot of potential, the stock's results have been less than stellar, with its value down 31 TP3T over the past 12 months. Over the past 12 months, the stock has lost 31 TP3T in value, and for fiscal year 2024, which ends in September, the company is projecting revenue growth of up to 6.51 TP3T. This isn't the kind of rapid growth that investors have come to expect from many AI stocks, but over the long term, Roswell Automation could be an undervalued growth stock to buy and hold, given the number of potential applications for Roswell Automation's products and services. An undervalued growth stock to buy and hold.

For investors, Roswell Automation is more of a long-term investment, but as its margins over the last 12 months have been 12% With the stock trading at just under 23 times its expected future earnings (based on analysts' expectations), this could be a good stock to price to benefit from the long-term potential of artificial intelligence.

2. Oracle

Oracle is another good value buy for AI investors. The company says demand for its Gen2 AI infrastructure has been strong. Oracle is a big player in the database space and a trusted provider of cloud services. As the demand for organizations to do more in the cloud and store more data rises, Oracle's business will inevitably boom.

In its latest quarterly results for the quarter ending February 29, Oracle reported $13.3 billion in aggregate revenue, up 7.11 TP3T year-over-year, and profits jumped 271 TP3T to $2.4 billion. Artificial Intelligence is still in the early stages of development, but since Oracle is a major provider of database services, there is reason to be optimistic about its growth rate; Oracle's cloud revenues grew 25% to $5.1B in the quarter.

Shares of Oracle have risen 34% over the past 12 months, but its 20x forward earnings are even cheaper than Rockwell.

3. International Business Machines Corporation

International Business Machines (IBM) is another top tech company that can benefit from artificial intelligence. The company's watsonx platform runs both in the cloud and on-premises. It has a useful application that is designed to helppolish jade or gold Artificial Intelligence Modeling.

While Nvidia and other companies can help providebuild upIBM's watsonx can help organizations create the tools and resources they need to build AI models, but managing those models is just as important to ensure their authenticity and safety. IBM's watsonx can play an important role in helping organizations manage their AI models and minimize risk, as chatbots have grown in popularity since the advent of ChatGPT at the end of 2022, but they've also highlighted the risks of AI: inaccurate data and analytics.

The company said that demand for watsonx and generative AI solutions "roughly translated" over the past quarter. However, for the period ending December 31, 2023, the company's aggregate revenue was $17.4 billion, up only 4% year-over-year.

Because organizations are still in the early stages of developing, training and evaluating AI models, it may be some time before watsonx becomes a major growth catalyst for IBM. As the company is a big name in the tech space, and offers consulting services, it can help shape the industry, especially in the area of AI and the do's and don'ts.

IBM's stock has been the best performer on this list, with a 12-month gain of 44%, but despite this impressive performance, it is the cheapest stock in terms of forward earnings estimates, trading at a multiple of 19.

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David Jagielski does not own any of the stocks mentioned above.The Motley Fool holds recommendations for Nvidia and Oracle.The Motley Fool recommends International Business Machines.The Motley Fool has a disclosure policy.

Got $5,000? These 3 Artificial Intelligence (AI) Stocks Are Still Low-Priced Buys was originally published by The Motley Fool.