Many artificial intelligence (AI) stocks soared over the past year as the bulls touted the growth potential of generative AI platforms like OpenAI's ChatGPT. That rising tide lifted stocks like Nvidia, which provides the GPUs that process those AI tasks, and Microsoft, the biggest backer of OpenAI.

However, other AI stocks generated less predictable returns. Applied Digital (NASDAQ: APLD), a company that rents out data centers to AI-oriented companies, saw its stock surge nearly 230% this year. But after that wild ride, it only trades about 25% above its IPO price. SentinelOne (NYSE: S), a cybersecurity company that aims to replace all human analysts with AI algorithms, experienced a year-to-date decline of 10% and remains more than 50% below its IPO price. Should investors buy either of these volatile stocks as a long-term play on the growing AI market?

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Source Fool.com