Artificial intelligence (AI) is a game-changing technology that has the potential to revolutionize business, which is why you should invest in these AI growth stocks. According to certain predictions, the AI sector could be worth $1.8 trillion each year by 2030, but this doesn’t consider the enormous value organizations will gain from employing it. It’s virtually impossible to put a number on it.

Artificial intelligence (AI) is already in use across various sectors, including financial services, insurance, energy, and tech. AI abilities will only get more sophisticated over time, and some stocks could see significant gains. If you invest in these AI growth stocks, you can expect returns of between 101% and 339%, potentially turbocharging your portfolio.

Nvidia: Implied upside of 101%

Nvidia (NASDAQ:NVDA) is a global technology company that designs and manufactures graphics processing units (GPUs), data center chips, and professional GPUs for use in visual computing, machine vision, and automotive computer systems. The firm is also known as a pioneer in artificial intelligence. It has established an AI supercomputer portfolio by building its first AI supercomputers.

Data centers hold mountains of data gathered from end-users in many sectors. Nvidia is using them to create a hive of AI learning for its clients. Thus, gaining valuable insights from a chaotic jumble of data that would otherwise be uninterpretable by ordinary humans without prolonged laborious study.

Increasing development

Nvidia aims to speed up the development of AI by using its graphics chips. For example, its V100 data center GPU is as powerful as 100 central processing units (CPUs), which translates to the ability to teach AI at a rate of 32 times faster, whether for automobile technology or disease research.

Nvidia is attempting to shed its image as a hardware business and instead position itself as a platform computing firm. Professionally visualizing and automobile/robotics are two of Nvidia’s smaller units. That indicates a promising future in software technology with potential worth trillions of dollars in the next decade.

Nvidia stock has tumbled by 42% amid the broader tech sector sell-off. However, Wall Street investment firm Needham believes it could rise to $400 per share in the next year or two. Since Nvidia generated $26.9 billion in revenue during 2021 and earned $4.44 earnings per share, it’s a less-risky wager than some of its technology industry peers, especially given analysts’ expectations for growth to continue into 2022 (and beyond).

Lemonade: Implied upside of 339%

Consumers have a terrible time dealing with insurance companies, especially when making claims. It frequently entails numerous phone calls with the insurer and weeks or months of waiting before the money is delivered. Lemonade‘s (NYSE:LMND) use of artificial intelligence to improve the customer experience may help it become more profitable than its peers in the long run due to its use of data.

Lemonade’s AI-powered online bot, Maya, engages with consumers and eliminates the need for human interaction most of the time. It can produce a quotation in 90 seconds and swiftly assess and pay claims. The outcomes are indisputable: Over 1.4 million individuals have joined Lemonade even though they left larger insurance companies.

Diversified insurance categories

Lemonade specializes in five insurance categories: renters, homeowners, pets, life, and (the recently launched) automobile. In 2022, the US auto insurance market might be worth $316 billion from a pool of almost 198 million policyholders. That’s a tempting hunting ground for Lemonade with its acquisition of AI-powered insurance broker Metromile (NASDAQ:MILE), adding ten years’ worth of driver data to its arsenal to accelerate market penetration.

Lemonade has struggled to break into new insurance sectors and expand its business. In 2021, the firm was in the red by $246 million on just $128 million of sales; it’s one reason Lemonades stock is down 86% from its all-time high. However, revenue anticipates growth in 2022, though losses will most likely continue.

Wall Street analysts believe Lemonade will emerge on the other side as a significantly more substantial company. As a result, it’s betting on Lemonade skyrocketing to $95 in the next 12 to 18 months, a 339% increase.

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