2 Top AI Stocks to Buy Right Now

Whether you realize it or not, artificial intelligence has already had a profound impact on the world. Consider the smart assistants on mobile devices, the language processing capacity of search engines, and the systems that surface recommendations across websites, apps, and streaming platforms -- all of these technologies lean on artificial intelligence.

Even so, the human race has hardly scratched the surface of what's possible. In the future, self-driving cars will revolutionize mobility, autonomous drones will transform logistics, and machine learning will drive efficiency and productivity across every industry.

In fact, AI could add $15.7 trillion to the global economy by 2030, according to research from Price Waterhouse Cooper. Investors looking to cash in on that trend should consider buying Pinterest (PINS 0.53%) and UiPath (PATH -1.62%). Here's why.

Image source: Getty Images.

1. Pinterest

Pinterest is a unique social platform. Rather than connecting friends and family, it allows users to engage with visual media like articles, images, and videos (i.e. pins). This might be a tasty new recipe, tips on mountain biking, or a trendy makeup tutorial -- regardless, people come to the platform to find inspiration and take action of their dreams.

Pinterest currently connects 454 million users with over 300 billion pins. And every time a person interacts with the platform -- creating a pin, following a brand, naming a collection -- more data is fed through its AI engine, honing its predictive capabilities. This enables Pinterest to deliver a personalized experience to each user, a feature that becomes more precise over time.

That data also makes Pinterest a valuable resource for brands and marketers, as it allows them to deliver targeted ads. Building on my previous example, users interested in mountain biking may see ads for relevant equipment or apparel, and people interested in makeup tutorials may find links to purchase the showcased products.

This dynamic creates a flywheel effect: As more people use Pinterest, the company collects more data, improving the user experience. At the same time, a growing user base brings more brands to the platform, boosting the amount of available content, further improving the user experience. This virtuous cycle has been a powerful growth driver.

Data source: Pinterest SEC filings, Ycharts. TTM = trailing-12-months. CAGR = compound annual growth rate.

Looking ahead, there are plenty of reasons for investors to be excited. Pinterest recently launched idea pins, a multi-page video format that allows people to learn from professional chefs, personal trainers, and other creators. This should drive user engagement.

Pinterest also plans to debut on-platform transactions later this year, a move that reinforces its growing role as an e-commerce discovery tool. In doing so, Pinterest hopes to remove friction from the conversion process, meaning brands on the platform should see an uptick in sales.

If successful, both of these upgrades would make Pinterest a more important player in the digital ad market, an industry that eMarketer values at $645 billion by 2024. Moreover, Pinterest's launch of on-platform transactions could allow it to enter the digital payments space, another industry expected to see high growth in the years ahead.

Image source: Getty Images

2. UiPath

UiPath has a lofty mission: to enable the fully automated enterprise. With that in mind, its platform blends two emerging technologies -- robotic process automation (RPA) and artificial intelligence -- allowing clients to build, deploy, and manage software robots.

Notably, these bots emulate human behavior, meaning they become more intelligent over time. As a result, they can do things like extract data from emails and invoices, review resumés and reports, and engage in conversations and complex decision making. More importantly, they can do these things faster and more consistently than humans.

Of course, UiPath isn't the only company that aims to automate the enterprise, but it is the RPA industry leader. In fact, during 2020, UiPath grew its market share by 8%, adding more revenue to its top line than the next nine competitors combined. Research firms like Forrester and Gartner have also recognized the company's dominance, ranking its platform ahead of all rivals in terms of functionality.

Not surprisingly, that advantage has led to strong demand. As of Q1 2022 (ended April 30, 2021), UiPath had over 8,500 clients, up 41% from fiscal 2020.

Data source: UiPath SEC filings, Ycharts. TTM = trailing-12-months. CAGR = compound annual growth rate.

Despite UiPath's rapid top-line growth, technologies like RPA and AI are still in their early stages of development and adoption. But I believe this company could have a profound impact on the world.

For instance, task mining tools could help UiPath automate the discovery of automation-ready workflows, then automate the building of bots to execute those workflows. Put another way, UiPath could automate the process of automation, delivering a turnkey solution to supercharge enterprise efficiency and productivity.

Looking ahead, management puts its market opportunity at $60 billion, and that figure should only get bigger in the years ahead. Given that enormous figure -- and UiPath's industry-leading position -- I think this stock could crush the market over the long term. That's why you should consider adding UiPath to your portfolio.