3 Artificial Intelligence (AI) Stocks to Buy in May

1. Salesforce (NYSE: CRM):

- Salesforce, a leading enterprise software company, has seen significant improvements in its operating margins and free-cash-flow generation in recent years. With its flagship customer relationship management (CRM) services and innovative ecosystem, Salesforce has positioned itself as a one-stop solution for companies' sales, operations, marketing, and collaboration needs.

- The company's introduction of Einstein AI, a generative AI assistant, further enhances its product ecosystem.

- Salesforce trades at a forward price-to-earnings (P/E) ratio of 28, reflecting its justified valuation based on improving cash flow and margins.

- Analysts project earnings growth of over 17% annually for the company, making its current price attractive for investors.

2. UiPath (NYSE: PATH):

- UiPath specializes in robotic process automation (RPA), offering software solutions for automating repetitive computer tasks.

- The company boasts nearly 11,000 customers, with a robust dollar-based net revenue retention rate of 119%.

- UiPath's strong cash flow and bottom-line profits indicate its growing presence in the RPA market.

- Analysts forecast annual earnings growth averaging 22% over the next three to five years, with shares trading at a forward P/E ratio of 34, presenting a potential bargain for long-term investors.

3. Super Micro Computer (NASDAQ: SMCI):

- Super Micro Computer provides turnkey server systems for AI applications, experiencing significant growth in revenue, particularly in the AI sector.

- Despite volatility, the company's revenue growth has accelerated to triple-digit rates, driven by AI tailwinds and customer preference.

- Analysts anticipate annual earnings growth averaging 52% for the next several years, with the stock trading at a forward P/E ratio of 35.

- While volatility is inherent with Super Micro Computer, its growth prospects make it an attractive option for value-focused growth investors.