The artificial intelligence sector represents companies that develop and implement AI technologies in various industries. These companies range from technology giants to specialized startups focused on machine learning and automation. AI stocks provide investment opportunities in companies and are changing the way companies operate and decisions are made. The sector has received a lot of attention due to AI’s potential to transform industries from healthcare to transportation.

Investing in AI stocks can provide exposure to one of the fastest growing segments of technology. Many AI companies are at the forefront of innovations in data analytics and automation. Some established AI companies have strong partnerships with large corporations, providing stable revenue streams. However, the sector carries significant risks. Many AI companies are still in the development phase and not yet profitable. Competition is fierce, with both established technology companies and new startups vying for market share. Regulatory concerns and ethical considerations can impact the development and adoption of AI.

When evaluating AI stocks, consider the company’s practical applications and market readiness. Look at their intellectual property portfolio and research development capabilities. Assess their ability to effectively commercialize AI solutions. Keep in mind that many AI stocks trade at premium valuations that reflect high growth expectations. Consider the company’s competitive advantages in specific AI applications. With this in mind, let’s take a look at two AI stocks to watch in the stock market today.

AI Stocks to Invest in (or Avoid) Today.

• Palantir Technologies Inc. (NYSE:PLTR)
• Salesforce Inc. (NYSE: CRM)

Palantir Technologies (PLTR stock)

First, Palantir Technologies Inc. (PLTR) is a software company specializing in big data analytics and artificial intelligence platforms. They develop solutions for complex data analysis, especially for government agencies, defense departments and large companies. Palantir’s platforms help organizations integrate, visualize and analyze large amounts of data to make better decisions. The company offers both government-focused (Gotham) and commercial (Foundry) platforms.

Just this week, Palantir announced better-than-expected financial results for the third quarter of 2024. In detail, the company posted earnings of $0.10 per share, on revenue of $725.52 million. This is compared to Wall Street estimates for the quarter, which had earnings per share of $0.09 and revenue expectations of $705.10 million for the third quarter of 2024. Additionally, the company also said it expects fourth-quarter 2024 revenue to be between $767.0 million and $771.0 million.

Since the beginning of the year, shares of PLTR stock are up a whopping 203.26%. Meanwhile, Palantir stock is trading 21.38% higher during Tuesday morning’s trading session, currently trading at $50.33 per share.

(Read more) 2 tech stocks to watch in November 2024

Salesforce (CRM Stock)

Salesforce Inc. is a global leader in customer relationship management (CRM) software and cloud-based business solutions. They offer a comprehensive suite of sales, service, marketing and business analytics applications through their cloud platform. The company focuses on helping companies digitally transform their operations and better connect with their customers.

Late last month, Salesforce announced the general availability of Agentforce, a new AI platform layer for building autonomous business agents. The platform allows companies to create AI agents that can independently perform tasks in sales, service, marketing and commerce. Salesforce reported that companies like OpenTable, Saks, and Wiley are already using Agentforce to improve their operations. The platform includes ready-made agents that can be customized using low-code or no-code tools. Agentforce Service Agent, the first widely available off-the-shelf agent, is designed to perform customer support tasks.

So far this year, shares of Salesforce stock are up 15.68% since the beginning of the year. Moreover, during Tuesday’s mid-morning trading session, CRM stock is trading slightly red up 0.57%, currently trading at $296.30 per share.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.