Computers are excellent at executing mathematical calculations, but they fall short of human abilities in cognitive processes including understanding languages, vision, thinking, organizing and training. Both machine learning and procedural learning are examples of artificial intelligence (AI) that allows systems to perform activities that would normally need human intelligence. Accordingly, given the rise of artificial intelligence in recent months, it’s no surprise to see investors hunting for undervalued AI stocks. 

In recent times, OpenAI’s ChatGPT has demonstrated the significant advancements achieved in the field of “generative AI,” which involves the creation of texts, images, sounds and ideas using artificial intelligence. The potential of such large language models is enormous, and several companies profit by selling hardware, software, services or expertise related to the technology. The following are some examples of the best AI stocks to buy.

C3.ai (AI)

C3.ai’s (NYSE:AI) shares surged following the release of its positive preliminary earnings results. According to the announcement that accompanied it, C3.ai released its initial findings for its Q4 and fiscal year that concluded on April 30. 

The overall revenue for Q4 is anticipated to go above the corporate forecast, which ranges between $72.1 million and $72.4 million, as stated in the announcement. However, the company’s performance can be subject to volatility, with potential risks to consider.

C3.ai is a relatively smaller and more agile player in the AI industry, especially when compared to the big names in the sector. This makes it a potentially more lucrative investment option for investors, should the AI boom meet expectations.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) has established a dominant position in the growing AI field, partly due to its strategic investments in OpenAI, the creator of ChatGPT with over 100 million monthly active users. The company is utilizing generative AI in its range of products and services, including Bing, which is gaining ground on Google’s stronghold in search engine dominance.

Microsoft’s new AI-powered assistant, Dynamics 365 Copilot, is generating buzz in the tech industry. It boasts advanced AI capabilities and natural language processing that enable users to turn their words into productive actions. With Copilot, users can easily create content, develop apps, and streamline workflows just by describing what they need in simple language.

Moreover, with a large stake in OpenAI, Microsoft is well-positioned at the forefront of the AI revolution. As AI capabilities continue to expand, so does the potential for Microsoft’s cloud services. In addition to enhancing its existing suite of cloud computing offerings, AI can also help Microsoft develop robust cloud security solutions, which will be crucial in protecting businesses against potential AI-related security threats.

With AI driving growth in various industries, Microsoft is poised to maintain its position as a leader. The technology is expected to accelerate growth rates for the company’s already massive business.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) has staged a remarkable comeback amid poor macroeconomic indicators, reaching a new 52-week high and getting close to its prior all-time high established in the last quarter of 2021.

Nvidia’s CEO, Jensen Huang, is an AI visionary who has steered the company towards maximizing the potential of AI milestones. Under his direction, Nvidia has emerged as a sector frontrunner and developed a track record for offering innovative solutions. Huang believes that companies are rapidly adopting cloud-first AI strategies for scalable development, which has positioned Nvidia as a leading player. In 2016, Nvidia provided OpenAI with its first supercomputers, which paved the way for the development of large language models.

Interest in AI growth stocks is currently at a peak. Despite the negative market background, there is still optimism about AI’s potential to disrupt crucial sectors of the economy. Therefore, investing in the chipmaker that provides the most high-performance AI chips is the ideal way to capitalize on this trend.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.