2 Artificial Intelligence (AI) Stocks to Buy Like There’s No Tomorrow

Artificial intelligence (AI) investing is a massive opportunity, as there are many ways to take advantage of this trend. With multiple investment opportunities, you don’t have to worry about picking between a handful of companies. The ability to be selective is key, as there are some AI companies I wouldn’t touch with a 10-foot pole.

But there are two AI stocks on sale right now that I think investors should take advantage of and buy like there is no tomorrow. Snowflake (SNOW -1.10%) and UiPath (PATH -0.36%) are two that I believe are attractively priced and play a critical role in the implementation of AI technology.

Snowflake

To make the best AI models possible, you need data. Collecting and storing that data can be problematic as it may be in unstructured formats, which can take up a lot of storage space. However, Snowflake’s data cloud software gives its users all the tools they need to collect, store, process, and utilize data efficiently.

This makes Snowflake a crucial product when developing a proprietary AI model suited for a particular business.

Snowflake is already a sizable platform and brought in $738 million in product revenue during the fourth quarter of fiscal year 2024 (ending Jan. 31), up 33% year over year. It’s also expected to grow more throughout this year, as management guided for around 22% product revenue growth during FY 2025. Additionally, Snowflake’s CEO announced his sudden retirement during the quarterly earnings report, sending the stock down nearly 20% the following day.

This is an overreaction, as new CEO Sridhar Ramaswamy helped lead the advertising division at Alphabet’s Google from a few billion in annual revenue to more than $100 billion. Ramaswamy is the perfect man for the job, as he has the blueprint to take Snowflake from a company of a similar size to a much larger company.

I think right now is a great time to take advantage of Snowflake stock’s pessimism, and investors should take the next opportunity to buy some Snowflake shares thanks to the sell-off.

UiPath

UiPath is more of an AI application investment. Its primary product is robotic process automation (RPA) software, which isn’t an AI product in itself. RPA allows its users to automate repetitive tasks, enabling employees to do tasks that require original thinking. When combined with RPA, AI increases the number of tasks UiPath can automate, which makes the software significantly more useful.

UiPath has seen similar success to Snowflake, as its Q4 FY 2024 (ending Jan. 31) annual recurring revenue (ARR) rose 22% year over year to $1.46 billion. Its FY 2025 guidance was similarly strong, as it expects its ARR to rise to about $1.73 billion, indicating 18% growth.

Additionally, UiPath posted an operating profit in the quarter, generating $15 million in profits — a 4% margin. This is critical as UiPath is becoming profitable now that its growth is slowing.

Despite those successes, UiPath’s stock trades at a reasonable price-to-sales (P/S) valuation, trading at less than 9 times sales.

PATH PS Ratio data by YCharts. PS Ratio = price-to-sales ratio.

With many other software stocks trading for around 20 times sales, it’s a far greater bargain than many of its peers. As a result of its useful product, growing profitability, fairly priced stock, and respectable growth, UiPath makes for a great AI stock to buy right now.