Three AI Stocks Worth Buying in May Despite the Market Volatility

As May unfolds, we're nearing the midpoint of the year and Artificial Intelligence (AI) remains a highly talked-about sector in the stock market. Even with some price fluctuations, these AI stocks present appealing opportunities for those who look in the right places. 'Sell in May and go away' is an old stock market adage but it's not one to follow blindly, especially when it comes to certain AI companies.

Salesforce: A Leader in AI-Driven CRM

Salesforce is well-known for its customer relationship management (CRM) solutions, but it has also been expanding its offerings through innovations and acquisitions. With its AI assistant Einstein AI, Salesforce enhances the capabilities of its users across sales, marketing, and more. Improved operating margins and cash flow signal a strong position as it approaches quarterly earnings. A forward price-to-earnings (P/E) ratio of 28 might seem high, but it's warranted given the company's cash flow and potential for earnings growth, which analysts predict to average over 17% annually in the coming years.

UiPath: Revolutionizing Work with RPA

Rather than robots replacing humans in a sci-fi scenario, UiPath shows that AI's real-world applications are in software-based robotic process automation (RPA). UiPath's software bots efficiently perform mundane computer tasks, offering significant cost benefits. With a remarkable net revenue retention rate and surging cash flow, UiPath's forward P/E ratio of 34 and predicted annual earnings growth of 22% over the next few years make it an alluring option for long-term investors.

Super Micro Computer: AI Server Solutions Skyrocketing

Fulfilling the need for server systems tailored for AI applications, Super Micro Computer has seen impressive growth, supported by the current AI boom. Despite its price volatility, strong revenue growth and favorable market positioning bode well for the company. With analysts forecasting a 52% annual earnings growth and a forward P/E of 35, the stock could be a promising pick for value-oriented growth investors. That said, because of the stock's volatility, it may be wise to buy gradually.

AI, stocks, investment