The markets have ground their way through a murky economy in 2023. Despite the S&P 500 index returning 17% year to date, elevated inflation and higher interest rates linger. Investors should remain selective about where they invest their money. Sticking with companies with near-term catalysts for growth is probably the best place to look for future winners.

To give you some ideas, here are two leading stocks in the burgeoning markets of ride-sharing and artificial intelligence (AI) that could be timely buys right now.

1. Uber Technologies

Uber Technologies (UBER -0.38%) stock is starting to pick up momentum again after a period of slowing growth. Share prices are up 120% this year, and the company's improving margins and profitability means it's not too late to buy the stock.

Management implemented changes to pricing that are helping Uber drivers make better decisions about what trips to accept. It's been a win-win for drivers and the company's bottom line. This change, along with good cost controls across the business, contributed to Uber's record-high adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin last quarter.

Uber says it still sees more opportunities to better price out a destination, which means the business hasn't yet reached its margin potential. Net income was $221 million in Q3, up from a loss of $1.2 billion in the year-ago quarter. That's an incredible turnaround on the bottom line that's pushing the stock up.

Profits are accelerating even as Uber pursues new growth opportunities in international markets. It just recently announced a new service for household tasks, so Uber's growth story is far from over. It's for these reasons the stock remains a great buy going into the new year.

2. C3.ai

Microsoft, Nvidia, Palantir Technologies, and C3.ai (AI 3.02%) stocks are trading up 55%, 238%, 217%, and 165%, respectively, in 2023. It's a sign that the next bull market will be led by artificial intelligence companies. C3.ai is the one we want to focus on because it's relatively small and has a growing list of large corporate customers that could drive accelerating growth next year.

New AI applications that increase productivity and help companies lower costs are in high demand in an inflationary environment. C3.ai is seeing increasing interest from major companies for its generative AI and other software technologies. The company is most notably serving the U.S. government, but also signing agreements with companies across every sector of the economy, including Bank of America and steel manufacturer Nucor.

One reason investors should love C3's business is that 85% of its revenue is subscription-based. While the stock has been volatile over weak profitability, its recurring revenue model should lead to tremendous profits down the road.

Revenue growth clocked in at a low 10% year over year last quarter but should accelerate later next year. The company is now using a consumption-based model that charges customers based on their usage of the software. Management noted on the last earnings call that consumption revenue is slightly ahead of what it has previously modeled, which is a good sign.

With the stock recently pulling back, now is a great time to consider buying shares ahead of a potential bull run in 2024 and beyond.