Three AI Stocks To Buy That Aren't Nvidia

The semiconductor giant Nvidia (NVDA) has returned over 700% during this "Age of AI," soaring enough to turn every $1,000 invested into $80,000 and change.

But these gains are in the past… and with Nvidia now valued as high as $3 trillion, investors interested in cashing in on the $15.7 trillion AI Revolution might be better served by buying smaller companies with much more room to run.

Here are 3 other stocks that could soar as the AI Revolution unfolds.

AI Stock No. 1: Pfizer (PFE)

Artificial intelligence holds huge implications for pharmaceutical companies, which spend billions or even tens of billions of dollars each year on research and development for their drug-making pipelines.

Artificial intelligence can make this process much cheaper and faster, by running thousands of simulations on various chemical and biological reactions in the time it would take a team of human doctors to carry out just one.

That's a major reason that Pfizer Inc. (PFE) has been making big investments in the AI sector since 2014—almost a full decade before ChatGPT became a household name.

In 2022, for instance, it invested $20 million in CytoReason, a firm using AI to build new disease models, and may ramp up its investments to $100 million a year through 2027.

Pfizer's CEO, Mikael Dolsten, is well-aware of the potential that the AI Revolution holds for Pfizer. "The rapid expansion of new technologies, like artificial intelligence, holds tremendous potential to help transform what is possible in human health," he said in 2022.

Pfizer trades at around $29 today. Unlike most Big Tech firms and other AI plays, the stock pays a hefty dividend of 5.75%, compared to 1.29% for the average S&P 500 company.

AI Stock No. 2: Tesla Motors Inc. (TSLA)

Tesla shares have fallen out of favor with investors lately after Elon Musk's presentation on robotaxis failed to impress Wall Street.

But its recently unveiled Optimus robots—humanoid robots that could soon be capable of doing household chores and working in assembly lines like fast-food restaurants—could be yet another game changer for the stock.

Elon Musk estimates that Optimus alone could lift Tesla's valuation to

$30 trillion, which would represent a 50x gain for the stock.

Such a scenario would take years to play out, as Optimus robots won't be ready to retail in 2024 or likely even 2025. But betting against Elon Musk hasn't been a winning move since Tesla went public in August 2010. And this famous Big Tech stock could still multiply investors' money in the years ahead.

AI Stock No. 3: The Kroger Co (KR)

Most people wouldn't consider this 135-year old grocery store chain as being an innovator—but in 1972, Kroger was the first grocery retailer in America to test the electronic scanner.

Today it's making big moves in the AI sector, harnessing the technology to improve efficiency. It's now using cutting-edge data science to scour data on 62 million households to offer coupons, streamline operations, and tailor shipping schedules to cut back on waste and inefficiency and deliver an experience that's crafted to make grocery shopping more convenient, enjoyable, and rewarding for tens of millions of repeat customers.

Kroger currently serves 23 million digitally engaged households each year, and issues 500 billion "Start My Cart" recommendations each year. As its data operations grow more powerful and sophisticated, there are signs it's already paying off.

Kroger shares are up 27% year-to-date. The company recently hiked its dividend, and now pays 2.1%, compared to the 1.29% average of the S&P 500 companies.

Perhaps most importantly, Kroger shares are still cheap relative to their fundamentals. The stock has a price-to-earnings (PE) ratio of just 14, making it a more tempting "Buy" for value investors than high-flying tech stocks that have already soared hundreds of percent in recent years.

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