My Recommended Artificial Intelligence (AI) Stocks to Buy Right Now (Hint: It's Not Nvidia)

Ray Kurzweil, an American technology pioneer and futurist, predicts that "artificial intelligence will reach human levels by about 2029. He also foresees an "intelligence explosion" where AI will surpass all human capabilities by 2045.

Not everyone agrees with Kurzweil. But even if he is wrong about the timing, he is right about the development of artificial intelligence (AI) and the long-term opportunities for investors are huge.

Artificial intelligence stocks have set the pace for the entire market. However, some stocks will be bigger winners than others in the future. Here are my recommendations for the best AI stocks to buy right now.

Paving the way for AI-enabled process automation

UiPathfirms(NYSE: PATH)Founded almost twenty years ago in Bucharest, Romania. The company specializes in the development of Robotic Process Automation (RPA) software and computer gizmos. Its vision has expanded to "automate all knowledge work to accelerate human achievement". It's easy to see how AI is critical to how UiPath realizes this vision.

Today, UiPath's platform is extensively integrated with artificial intelligence. Customers can quickly automate existing and new processes, including extracting information from documents, filling out forms, reading emails, and more. The company's "clipboard AI" (Clipboard AI) can be automatically copied and pasted into a form or application program that is used by theeraIt was named one of the best inventions of 2023.

UiPath has more than 10,800 customers globally, including leading financial services companies.FiServand audio streaming service providersSpotifyIts network of partners includes consulting giants. Its network of partners includes the consulting giantsAccenture),Cognizant and Deloitte.

Why do I like UiPath over other AI stocks?

Why UiPath is my favorite AI stock to buy right now instead ofNvidiarespond in singingMicrosoftA company as big as UiPath? Models are a key factor, and with market capitalizations in the trillions of dollars, Nvidia and Microsoft have an even tougher task ahead of them to continue their strong growth. uiPath's market capitalization is under $13 billion - a sweet spot that's not too small, but not too big, either.

Suffice it to say, other AI stocks have had their own style of dominance. For example.Soundhound AI (NASDAQ resonance code: SOUN)Soundhound's market capitalization is less than US$2 billion. However, Soundhound trades at a P/E of 29.4x, while UiPath trades at a P/E of 9.8x. This multiple is even more attractive considering that UiPath's Q4 FY2024 revenue grew 31% year-over-year.

Additionally, many smaller AI stocks fail to turn a profit (including Soundhound AI). However, UiPath turned profitable in the most recent quarter.

UiPath seems poised for sustained growth over the long term. UiPath is not alone in targeting this fast-growing market, as a recent study found that 70% executives consider AI-enabled automation "important or critical to achieving their organization's strategic goals." However, I agree with Ark Invest's assessment that UiPath's technology is superior to its competitors' platforms, giving it a key competitive advantage.

What's wrong with UiPath?

Unfortunately, UiPath is not perfect. There is no guarantee that the company will continue to be profitable. In a recession, the company's stock could be hit hard, and UiPath's customer base is growing slower than I'd like to see. Most of the company's revenue comes from a relatively small customer base.

Despite this, UiPath is a rising AI leader. It's delivering strong growth. It's not overvalued. For investors looking for the best AI stocks, I think UiPath is the one.

Should you invest $1000 in UiPath now?

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Keith Speights owns shares of Microsoft Corporation.The Motley Fool owns and recommends Accenture Plc, Microsoft, Nvidia, Spotify Technology, and UiPath.The Motley Fool recommends Cognizant Technology Solutions. The Motley Fool recommends Cognizant Technology Solutions, and recommends the following options: Long Accenture $290 Calls in January 2025, Long Microsoft $395 Calls in January 2026, Short Accenture $310 Calls in January 2025, Short Microsoft $405 Calls in January 2026.The Motley Fool has a disclosure policy. The Motley Fool has a disclosure policy.

My Recommended Top Artificial Intelligence (AI) Stocks to Buy Right Now (Hint: It's Not Nvidia) was originally published by The Motley Fool.