The artificial intelligence (AI) sector is a rapidly growing area in the technology industry, focusing on creating intelligent machines that act and react like humans. AI technology includes machine learning, natural language processing and robotics, impacting various industries such as healthcare, finance and automotive. Companies in this sector range from large technology giants to specialized startups, all contributing to the development and application of AI.
Investing in AI stocks presents several advantages. AI is at the forefront of technological innovation, offering significant growth potential as its applications expand. Investments in AI can lead to potentially large returns as these technologies become integrated into various business operations and consumer products. However, there are also disadvantages. The AI sector is highly competitive and fast-paced, making it difficult to predict which companies will succeed. In addition, high research and development costs can affect profitability, especially for smaller companies.
Investors in AI stocks should be aware of the volatility of the sector. Rapid technological changes can quickly change the competitive landscape. Additionally, ethical and regulatory considerations surrounding AI may affect market dynamics. If reading this you are interested in the AI sector, here are two AI stocks to watch in the stock market this week.
Stocks to Buy (Or Avoid) This Week
Snowflake (SNOW Stock)
introducing, Snowflake Inc. (SNOW) is a cloud-based data storage company that offers a unique, cloud-built data platform. Snowflake provides data storage, processing and analytics solutions that are faster and more efficient than traditional offerings. Their platform supports a wide range of data workloads, including data engineering, data lakes, data applications and data sharing.
At the end of last month, Snowflake reported its financial results for the third quarter of 2024. In detail, the company announced a loss of $0.08 per share, along with revenue of $734.17 million for Q3 2024. This was against estimates. for the quarter, which were EPS of $0.14, and revenue estimates of $712.78 million. Additionally, revenue increased by 31.80% compared to the same period, the previous year.
Year to date, shares of Snowflake stock are up 46.87% year to date. Meanwhile, as of the closing bell this past Friday, SNOW stock closed the day at $199.01 per share.
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Palantir Technologies (PLTR stock)
later, Palantir Technologies Inc. (PLTR) specializes in big data analytics. The company develops software that integrates, manages and secures data from various sources. Palantir’s platforms are used by governments and commercial organizations for intelligence gathering, counterterrorism, and analyzing large data sets.
Just last week, Palantir Technologies announced an extension of its contract with the US Army’s Program Executive Office for Enterprise Information Systems. This extension, valued at $115.04 million, continues Palantir’s role in strengthening the Army Vantage program. The program integrates various data sources to assist the US military in data-driven operations and decision-making. Under this contract, Palantir will continue to provide its data and analytics platform, supporting the Army’s move toward an integrated data ecosystem. This move highlights Palantir’s continued contribution to the US military’s strategic use of data.
Moving forward, in 2023 year to date, shares of PLTR stock have advanced 184.82% YTD. Additionally, as of this past Friday’s closing bell, Palantir stock is trading around $18.20 per share.
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