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Artificial intelligence was a hot field in 2023, leading to soaring stock prices for big-name tech names like Nvidia (thanks to its advanced chips) and Microsoft (thanks to its partnership with ChatGPT creator OpenAI). Investors who didn't buy these stocks before the AI frenzy drove up share prices may feel they've missed out.

Fortunately, plenty of up-and-coming tech firms provide new opportunities to benefit from the advent of AI, and 2024 is a good time to scoop up shares of some of these rising stars. Here is a trio of young tech companies well-positioned to deliver robust returns in the new year.

The transformative power of AI is particularly evident in Symbotic (SYM 1.42%). The company specializes in providing warehouses with robotic workers managed by AI. These robots can process freight quickly, accurately, and safely alongside humans. And Symbotic's AI can continuously analyze and refine the work performed by the robots, routinely improving their efficiency.

The company's customers include Walmart, which owns a stake in Symbotic, and Southern Glazer's Wine and Spirits, the largest distributor of alcoholic beverages in the U.S.

But Symbotic is just getting started. In its 2023 fiscal year, ended September 30, Symbotic had installed 12 systems for customers, a substantial jump from 2022's seven. This growth translated into fiscal 2023 revenue of $1.2 billion, nearly double the sales generated in the prior year.

More revenue growth lies ahead for the company. Symbotic was in the process of installing 35 robotic systems at the end of fiscal 2023, more than double the 17 systems that were in process the previous year. As a result, the company anticipates fiscal Q1 revenue of at least $350 million, up from the prior year's $206.3 million.

UiPath (PATH 0.63%) provides clients with an AI platform that can analyze their business workflows, identify areas for improvement, and then automate those tasks. Organizations are flocking to UiPath's AI solution, particularly in industries such as finance, healthcare, and government, since these sectors involve a ton of administrative tasks that AI can handle.

UiPath's success is seen in its strong sales growth. The company's revenue of $325.9 million in its fiscal third quarter, ended October 31, represented a 24% year-over-year increase. The company expects more revenue growth in Q4, forecasting at least $381 million versus the prior year's $308.5 million.

Despite the strong sales, UiPath is not profitable, like the other high-growth tech companies on this list. But UiPath made a concerted effort over the past year to reign in costs. So its fiscal Q3 net loss of $31.5 million was a substantial drop from the prior year's loss of $57.7 million. This is a positive sign of the company's improving financial health.

Another positive is its improvement in free cash flow (FCF). UiPath's Q3 adjusted FCF was $44 million, up from negative FCF of $24.1 million in the prior year.

IonQ (IONQ -1.09%) operates in the emerging field of quantum computing. Quantum computers offer the potential for AI to evolve exponentially, because once quantum technology progresses far enough, these machines will be able to perform complex calculations beyond the abilities of the world's most powerful supercomputers.

Quantum machines are potent since they use quantum physics to perform multiple computing tasks simultaneously, rather than processing them sequentially like today's computers. IonQ developed quantum computers in 2023 that achieved 29 algorithmic qubits.

This milestone signals IonQ could reach 35 algorithmic qubits in 2024. Algorithmic qubits are a benchmark measuring a system's ability to run quantum workloads. The higher the number, the more computing work the quantum machine can successfully complete.

At 35 algorithmic qubits, IonQ's system will be on the verge of exceeding the abilities of today's conventional computers, and the emergence of quantum-powered AI can begin.

IonQ generates revenue by charging for access to its quantum technology, and that revenue is rising quickly. The company's Q3 sales zoomed up 122% year over year to $6.1 million. Through three quarters, IonQ's 2023 revenue stood at $15.9 million, more than double 2022's $7.3 million.

As its sales success shows, IonQ's technology is attracting customers. In September the company signed a deal with the U.S. Air Force worth $25.5 million to provide it with a quantum system.

Because IonQ, UiPath, and Symbotic are all nascent businesses successfully capturing customers in their respective fields, they possess the potential for years of sales growth ahead, making them worthwhile buys for 2024 -- or at least worthy of going on your watchlist. And given how fast their revenue is rising, they're great stocks for growth investors.

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3 Up-and-Coming Artificial Intelligence (AI) Stocks to Buy in 2024 - The Motley Fool