2 Artificial Intelligence (AI) Stocks That Are Only Worth Buying, Like There's No Tomorrow

Artificial Intelligence (AI) investing is a huge opportunity as there are many ways to capitalize on this trend. With multiple investment opportunities, you don't have to worry about picking and choosing between a few companies. Being selective is key, because there are some AI companies that I would never touch.

But there are two AI stocks that are selling like hotcakes, and I think investors should jump at the chance to buy them.Snowflake (NYSE: SNOW)respond in singingUiP ath (NYSE: PATH)These are two stocks that I think are attractively priced and play a critical role in the implementation of AI technology.

Snow Corporation

To build the best AI models, you need data. Collecting and storing data can be problematic because it may be in an unstructured format that takes up a lot of storage space. However, Snowflake's data cloud software provides users with all the tools they need to collect, store, process, and utilize data efficiently.

This makes Snowflake a key product for developing proprietary AI models for specific businesses.

Snowflake is already quite a platform, bringing in $738 million in product revenue in the fourth quarter of fiscal 2024 (ended Jan. 31), up 33% year-over-year, and is expected to grow even more throughout the year, as management expects product revenue to grow by about 22% in fiscal 2025. In addition, Snowflake's chief executive officer announced his retirement in the middle of the quarterly results, causing the stock to drop nearly 20% the next day.

This is an overreaction, as the new mat executive, Sridhar Ramaswamy, helped lead the organization.AlphabetGoogle's advertising division has grown from billions of dollars in annual revenue to more than $100 billion. Ramaswamy is the perfect choice because he has the blueprint to take Snowflake from a humble company to a bigger humble company.

I think now is a great time to capitalize on the pessimism about Snowflake stock and investors should take advantage of the next sell-off to buy some Snowflake stock.

UiPath

UiPath is more of an AI application investment. Its main product is Robotic Process Automation (RPA) software, which is not an AI product per se; RPA allows users to automate repetitive tasks so that employees can perform tasks that require creative thinking. In conjunction with RPA, artificial intelligence increases the number of tasks that UiPath can automate, making the software much more useful.

UiPath has had similar success to Snowflake, with its annual recurring revenue (ARR) for the fourth quarter of FY2024 (ended January 31) growing 22% year-over-year to $1.46 billion. Its FY2025 merit guidance is similarly strong, with ARR projected to increase to approximately $1.73 billion, an increase of 181 TP3T.

In addition, UiPath realized an operating profit of $15 million in the quarter, with a margin of 4%, which is important as UiPath is starting to become profitable in the midst of slower growth.

Despite these successes, UiPath's stock is trading at a price-to-earnings (P/S) valuation of less than 9x sales.

UiPath's stock price is much cheaper compared to many other software stocks selling at around 20x. UiPath is the best AI stock to buy right now due to its useful products, growing profitability, a hefty share price, and impressive growth.

Should you invest $1,000 in Snowflake now?

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Alphabet executive Suzanne Frey is a member of The Motley Fool's board of directors.Keithen Drury owns shares of Alphabet, Snowflake, and UiPath.The Motley Fool holds recommendations for Alphabet, Snowflake, and UiPath.The Motley Fool has a disclosure policy. The Motley Fool has a disclosure policy.

Two Artificial Intelligence (AI) Stocks to Buy Like There's No Tomorrow was originally published by The Motley Fool.