2 AI Stocks You’ll Regret Not Buying Before 2025

Adoption of artificial intelligence (AI) continues to spread across the economy. Statista predicts that the AI ​​market will explode to $826 billion by 2030.

In line with this estimate, growth from the following companies shows that demand for AI hardware and software is not slowing down. This could be a great time to buy this AI stock that is currently trading nearly 40% below its 52-week high.

1. Dell Technologies

della (DELL -4.13%) is more than a PC brand. It’s also a leading supplier of servers and storage systems, and that’s fueling solid growth for Dell as companies snap up AI-optimized servers like there’s no tomorrow.

Revenue from Dell’s infrastructure group makes up nearly half of the business and rose 38% year-over-year last quarter. Management sees more organizations buying AI products each quarter, signaling a strong upward trajectory for the infrastructure business that isn’t slowing down anytime soon.

Most importantly, Dell doesn’t just sell a server. It offers a full suite of networking and storage services to go with its state-of-the-art liquid-cooled servers. Dell tunes all of these systems to deliver optimal performance for the customer, which reflects a business that provides excellent customer support. That’s why more customers are turning to Dell amid a competitive server market — a market the company estimates is worth $174 billion when you include the additional services it offers.

The downside for Dell is the PC business. Revenue in the customer solutions group fell 4% year-over-year, offsetting much of the growth Dell is seeing in infrastructure. But the PC business could pick up again in the next few years, as there are plenty of older PCs that will need to be upgraded to handle processor-intensive AI applications.

Wall Street analysts expect Dell’s adjusted earnings per share to grow at an annual rate of 12% over the next few years. Against these estimates, the stock’s price-to-earnings (P/E) ratio of 14 is a bargain and raises the chance that the stock will rebound and trade at a higher valuation by this time next year.

2. C3.ai

C3. have (AI 0.47%) is a leader in providing AI applications that help organizations save a lot of time in managing their supply chains and derive important insights from their data to make better decisions.

Revenue growth rose to 20% year-over-year last quarter. Companies across multiple industries are showing interest in C3.ai’s generative AI applications. Prospective customers in 15 industries have piloted the company’s product over the past year, which opens up new markets for the company.

C3.ai has valuable sales channels through major cloud service providers such as Microsoft Azure and Amazon Web Services. Its 12-month qualified pipeline through these partners is up 63% year-over-year, showing that C3.ai’s strong growth isn’t slowing down anytime soon.

Management expects revenue to continue to accelerate through the end of fiscal 2025 (which ends in April). Wall Street currently expects revenue to grow from $383 million this year to $546 million by fiscal 2027.

The negative is that the business is not yet profitable. However, since C3.ai generates over 90% of its revenue from subscriptions, it should see a healthy margin in the long run. In fact, the company’s free cash flow was $18 million last quarter and has grown significantly over the past year.

The stock is down 19% this year, which could create an excellent buying opportunity. C3.ai guidance indicates greater momentum in signing deals. As the company reports stronger top-line growth with improving free cash flow, the stock is likely to trade higher by this time next year.