The Best Artificial Intelligence AI Growth Stock to Buy, According to Several Wall Street Analysts No, It’s Not Nvidia The Motley Fool

Stay informed on OpenAI’s funding rounds, as there may be future opportunities for accredited investors to participate in private financing events. Although scarce, some instances have occurred where non-institutional investors are offered a chance to invest in private companies during fundraising. However, you must be prepared for potential minimum investment thresholds far higher than average retail investments.

Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Explore opportunities for investing in Databricks, and the ins and outs of this tech company. The company experienced a massive acceleration in demand for its chips in 2023 as customers raced to capitalize on the AI gold rush.

The Tech Edvocate

Nvidia’s revenue skyrocketed 206% in its fiscal third quarter of 2024 to a record $18.1 billion, driven by record data center revenue (up 279% year over year to $14.5 billion). That surging revenue drove a stunning 12-fold increase in its earnings. While Elon Musk was a co-founder and originally invested $50 million to start the lab, he sold his stake to Microsoft and left the company in 2018.

  • In January 2023, the company confirmed that it extended its partnership with OpenAI into a third phase.
  • Investing in private companies may be considered highly speculative and involves a high degree of risk, including the risk of substantial loss of investment.
  • OpenAI operates as a hybrid corporate structure encompassing both non-profit and for-profit entities.
  • Popular brokerage platforms include Robinhood, eToro, TD Ameritrade, and Charles Schwab.
  • Analysts estimate it at approximately $20 billion, but it does not appear that they have raised any funds at this valuation.

These marketplaces allow investors to buy shares of private companies before they go public. However, it’s important to note that investing in pre-IPO shares can be restricted to certain accredited investors and may involve higher risks compared to publicly traded stocks. An IPO is a process through which a private company offers its shares to the public for the first time, entering the public stock exchange.

How Can I Buy OpenAI Stock?

That forecast makes its current valuation of 35.6 times earnings seems tolerable, despite being a premium to the three-year average of 32.2 times earnings. Patient investors should consider buying a small position in this stock today. Bloomberg expects the generative artificial intelligence (AI) market to compound at 42% annually to reach $1.3 trillion by 2032.

Should you invest in Open AI?

Each week our editorial team keeps you up with the latest financial news, shares reading recommendations, and provides useful tips on how to make, save and grow your money. None of the writers or contributors of FinMasters are registered investment advisors, brokers/dealers, securities brokers, or financial planners. This article is being provided for informational and educational purposes only and on the condition how to buy, sell & trade monero for beginners that it will not form a primary basis for any investment decision. That coverage isn’t all positive, but at a certain stage in a company’s development, all publicity is good publicity. You will not get the low per-share price that you’d get from a pre-IPO or even IPO investment, but you’ll face substantially less risk. You’ll also get a chance to see how the market responds to the IPO before you pull the trigger.

Rapid Growth

Buying at the IPO has one major advantage over a pre-IPO purchase. At least you know that after the IPO, there will be a public market for your shares. You may not be able to take immediate advantage of that market, though.

Newsletter

From time to time, I will invite other voices to weigh in on important issues in EdTech. We hope to provide a well-rounded, multi-faceted look at the past, present, the future of EdTech in the US and internationally. Microsoft and other industry leaders have invested significantly in OpenAI. This demonstrates confidence in the company’s potential for generating revenue and profitability.

The company started with a seed funding of $1 billion from Elon Musk and his partners, but since then a firm valuation for Open AI has not been established. Analysts estimate it at approximately $20 billion, but it does not appear that they have raised any funds at this valuation. This deal marks the 3rd phase of the partnership between the 2 companies, following previous investments in 2019 and 2021.

Leave a Comment