Semiconductor giant Nvidia has been one of the best-performing stocks in the S&P 500 for the past two years, with an impressive increase of 239% in 2021 alone. Investors have flocked to Nvidia due to its dominance in the machine learning processor market and its involvement in various areas of the artificial intelligence (AI) industry. While Nvidia remains a solid investment, Wall Street analysts are pointing to other AI-focused stocks, such as Amazon and Docebo, as having more upside potential.
Amazon, one of the world’s largest e-commerce companies, has been expanding its reach beyond just online retail. The company has a thriving digital advertising business and operates Amazon Web Services (AWS), the leading provider of cloud infrastructure and platform services. These businesses, along with its strong presence in the online marketplace, position Amazon well to benefit from the growing AI industry. Additionally, Morgan Stanley predicts that Amazon will surpass Alibaba as the market leader in gross sales by 2027. With retail e-commerce sales projected to increase by 8% annually through 2030, Amazon is expected to experience double-digit sales growth in the coming years.
Furthermore, Amazon has made significant investments in artificial intelligence and developer services, further solidifying its position in the AI market. Gartner recognizes Amazon Web Services as a leader in artificial intelligence developer services, and the company recently introduced Bedrock, a service that helps developers build generative AI applications. With a strong growth forecast and an attractive valuation, Amazon presents a compelling opportunity for investors seeking exposure to the AI industry.
Docebo, a lesser-known stock, provides a learning management system (LMS) that helps businesses create, deliver, and measure training courses using AI technology. It has been recognized as a leader in the LMS market by industry analysts and continues to innovate with its generative AI capabilities. Docebo Shape, for example, uses AI to automate content creation from various source materials. This innovative approach has positioned Docebo as a top generative AI stock, according to Morgan Stanley.
Docebo’s strong market presence in the LMS space, combined with its focus on leveraging AI, makes it an exciting addition to a portfolio of AI stocks. The LMS market is expected to grow by 20% annually through 2030, and Wall Street analysts forecast Docebo to grow sales at 25% annually over the next five years. With a current valuation of 9 times sales, Docebo appears to be undervalued compared to its growth prospects.
While Nvidia remains a solid choice for investors looking for AI exposure, Amazon and Docebo present attractive options with higher upside potential, according to consensus price targets. As the AI industry continues to expand and companies increase their investment in AI technologies, these stocks could offer significant returns for investors in the coming years.
Please note that this article is not financial advice. Investors should conduct thorough research and consider their own investment goals before making any investment decisions.
