IBM-2 Game-Changing Artificial Intelligence (AI) Stocks to Buy Right Now (Hint: Not Nvidia)

Core Insights - The article discusses the ongoing AI innovation wave, highlighting the significant impact of OpenAI's ChatGPT release in November 2022, which accelerated AI adoption and awareness [1] - It identifies Nvidia as a leading player in the generative AI boom, with its stock price increasing over 1,000% in two years, driven by a 237% revenue increase and a ninefold boost in free cash flows [2] - The article suggests that while Nvidia is a strong performer, its stock may be overvalued, prompting a search for alternative AI investment opportunities [2] Company Analysis - Nvidia: - Stock has risen 1,050% over two years - Price-to-Sales Ratio (P/S) is 58.4 - Price-to-Free Cash Flow Ratio (P/FCF) is 72.4 [3] - IBM: - Stock has increased 92% over two years - P/S ratio is 3.4 - P/FCF ratio is 16.9 - IBM has been an AI innovator since the 1970s, focusing on enterprise-class AI solutions rather than consumer applications [4][5] - The Watsonx generative AI platform has generated over $2 billion in orders [5] - **UiPath**: - Stock has only increased 5% over two years - P/S ratio is 5.1 - P/FCF ratio is 21.6 - UiPath specializes in robotic process automation (RPA) and has integrated AI capabilities to enhance its software [6][7] - The company has seen a 32% increase in trailing sales over the last two years, with free cash flows improving from a$ 134 million loss to $327 million in profits [7]