Our Top AI Stock Just Popped 50% Higher; Here's the Next One to Surge

We told our readers about the top AI stocks set to cash in on the industry's 300% growth potential back in March. And one stock already popped over 50%.

Last week, Salesforce announced it would acquire Tableau Software Inc. (NASDAQ: DATA), a leading data visualization company we told readers about, for $15.7 billion. Tableau stock shot up 30% instantly - and more than 50% higher since the start of the month.

And that's just the beginning of what's in store for the best AI stocks.

Yes, there's a segment of the artificial intelligence (AI) industry set to grow 300% in the next four years, and Salesforce now has a piece of that.

But one other AI stock in this segment is poised to start this wave off with a 72% gain in 2019.

You see, we recommended Tableau back in March, when it was trading for $125.74. Analysts gave it a high price target of $162, and now look: it's at $167.09 today.

Underlying that price jump is more than just Tableau's 300% earnings surprise in the first quarter of 2019. It's also more than the company's projected 2019 earnings growth of 673.3%.

Tableau was able to exceed earnings expectations thanks to a monumental rise in demand for AI-supported business intelligence (BI).

We see it, Salesforce sees it, and now it'd be a pity if everyone didn't see it.

Why Everyone Doesn't See It

Sadly, due to misinformation, some investors will avoid this industry altogether, and others will lose out on bad investments.

It's largely because the word "business intelligence" is simply too vague to get people excited. "Business Intelligence" could refer to data mining, reporting, performance metrics, descriptive analytics, querying, statistical analysis, data visualization, data preparation, or some combination of these.

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A single company might specialize in one or two, or they might offer a package like the Power BI tool by Microsoft Inc. (NASDAQ: MSFT).

That means the list of companies and applications serving "business intelligence" can be overwhelming. It's the kind of thing that stumps bears and drives bulls off cliffs. But that's why we've done the digging for you.

We want you to focus on one segment of BI: augmented analytics. That's where Gartner says we'll see this 300% growth. It's the foremost business AI solution for 2019.

The goal of augmented analytics is to make a company's most important data more useful. This is done by mining the data and allowing users to navigate it in a simplified, visual format. With it, CEOs can view their operations end to end from a mobile device, or they can grant employees further down the chain access to more high-level data.

That means smarter decisions, new opportunities, and higher margins for companies who adopt the technology. And that's fueling demand for the companies who can supply these results.

Salesforce.com Inc. (NASDAQ: CRM), which is the world leader in Customer Relationship Management, already caught on to this opportunity.

But there's even higher upside for one of its competitors - in particular, one of the top rising AI stocks on the market.

The Tableau stock has likely hit its plateau before being absorbed by Salesforce, but this other favorite business AI stock pick is ready to shoot up 72% in 2019.

And that's even before the big commercial AI boom.

The Business Intelligence Stock to Buy in 2019

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There could be a common factor in the success of Target Corp. (NYSE: TGT) dodging the retail apocalypse and Southwest Airlines Co. (NYSE: LUV) topping our "best domestic airlines" lists.

They both use software from Domo Inc. (NASDAQ: DOMO) to gather real-time, top-down information about their businesses conveniently through their phones.

Other Domo customers include names like eBay Inc. (NASDAQ: EBAY), Sephora, and National Geographic.

The number of business intelligence solutions on the market is growing, but Domo has a unique product developed completely in-house. It boasts a 95% retention rate with its star-studded list of clientele.

CEO Josh James also has a great track record. Before Domo, he founded Omniture, an online marketing firm, and sold it to Adobe for $1.8 billion. He says that, with Domo, the company focused on putting together an original product that couldn't be mimicked elsewhere.

With solid retention and a unique, user-friendly product, Domo expects 51.6% earnings growth and 24.2% sales growth in 2019.

The tool allows an executive to monitor operations around the globe in seconds, getting the numbers on specific stores and products. It's a forward-looking product, integrating all of a company's data in the cloud.

The fact that it's cloud-based means it's highly scalable and easy to implement. Gartner writes that deploying Domo's tool requires "little or no support from IT," which separates it among a category of software that typically requires a lot of hand-holding to deploy. That means savings for companies that adopt it.

DOMO might have seemed dormant in the last few months, rising only 13%, but analysts have been moving their targets upward. The last time we recommended Domo, analysts were giving it a high target of $38. Today, they're saying $52.

That's 72% higher than today's $30.19.

In its latest quarterly report, the company's total revenue was up 30% year over year, to $36.8 million. It was able to reduce operating expenses year over year as well, by 10%.

It's still a speculative stock, but Domo clearly has an edge with its product and client base, giving it a foothold in the business intelligence sector once it really begins to soar.

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About the Author

Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.

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