2 AI Stocks to Consider for Long-Term Growth Besides Nvidia

Nvidia has established itself as a leader in the artificial intelligence (AI) sector, but it's not the only game in town. For investors looking to diversify their AI portfolio, C3.ai and Upstart offer compelling opportunities. Both companies have rapidly growing businesses and addressable markets, making them attractive long-term investments.

C3.ai (NYSE: AI) has developed a comprehensive portfolio of over 130 ready-made applications designed to accelerate the adoption of AI in various industries. From financial services to retail and manufacturing, C3.ai can deliver a custom AI application in as little as three months. This rapid deployment capability is a significant advantage for businesses looking to integrate AI into their operations.

Upstart Holdings (NASDAQ: UPST) has revolutionized the lending industry with its AI-powered algorithm. This technology allows banks to assess the creditworthiness of potential borrowers more accurately and efficiently than traditional methods. By leveraging AI, Upstart helps financial institutions make better lending decisions, reducing risk and improving customer satisfaction.

The financial resources and technical expertise required to develop AI software from scratch are substantial. Many companies turn to third-party vendors like C3.ai to meet their AI needs. C3.ai's platform connects to over 200 third-party databases and software applications, enabling businesses to tap into their most valuable data for AI-driven insights.

Recently, C3.ai ventured into agentic AI, developing a platform that allows businesses to create and deploy virtual assistants. These AI agents can analyze data, automate workflows, and influence key decisions. Salesforce CEO Mark Benioff estimates the market for digital labor could be as large as $12 trillion, positioning C3.ai at the forefront of a massive financial opportunity.

Businesses can access C3.ai's products through leading cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud. This scalability allows companies to leverage the computing power of these cloud providers without the burden of maintaining their own infrastructure.

Upstart's AI-powered lending algorithm has already shown significant success. By using machine learning to analyze a broader range of data points, Upstart has improved the accuracy of credit assessments. This has led to better loan performance and reduced default rates. For banks and financial institutions, this means more profitable lending practices and a better customer experience.

Despite their potential, shares of both C3.ai and Upstart have declined from their all-time highs. This dip presents a strategic buying opportunity for investors. The long-term growth prospects of these companies remain strong, making them attractive additions to any AI-focused investment portfolio.

Investing in AI stocks like C3.ai and Upstart can be a wise move for those looking to capitalize on the ongoing AI revolution. With their innovative solutions and growing market presence, these companies are well-positioned to deliver substantial returns over the long term.