Investing in artificial intelligence (AI) has become lucrative and risky. Stocks such as Nvidia and Palantir could revolutionize AI, but they also sell at valuations that make them increasingly risky choices.

However, not all AI stocks have become expensive in the past year. These three companies play critical roles in AI, but trade at valuations that will allow risk-averse investors to buy in now without overpaying.

Now that International Business Machines (NYSE: IBM) has become a leader in the cloud, it is probably time to consider adding it to your portfolio. The company's move into the hybrid cloud and the spinoff of its underperforming managed infrastructure business as a new company, Kyndryl, have changed the outlook for this tech stock.

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Source Fool.com