AI, automation, and robotics have the potential to disrupt numerous industries. Recent advancements in AI technology, such as OpenAI’s DALL-E 2 image generator and the introduction of chatbots like ChatGPT and Bard, have showcased progress in this field. Companies that fail to invest in AI products and services, including machine learning, smart applications, digital assistants, and autonomous vehicles, may risk obsolescence. Other AI stocks boast the potential to disrupt many traditional industries.

Investing in AI stocks presents potential opportunities for risk-tolerant investors. However, it’s important to be cautious, as other trendy technologies like cryptocurrency and the metaverse have not always been profitable for equity investors. Ultimately, all long-term investors should consider the high risk associated with investing in AI stocks.

That said, many reasons exist to believe the AI trend will likely continue over the long term. For those bullish on this space, here are three AI stocks that could turn $1,000 into $10,000 over the next decade.

Upstart (UPST)

Upstart Holdings (NASDAQ:UPST) has made a name for itself with its AI lending platform, especially during the pandemic. However, current economic conditions have dampened its progress, including increasing interest rates. Despite this reality, the critical question remains – when will banks regain their lending strength in a rapidly-evolving business environment?

Upstart’s Q1 2023 financial results exceeded expectations, with $103 million in revenue and a better-than-expected adjusted loss per share of $0.47. Following this update, the stock surged over 70% (May 19).

Upstart’s expansion into the home equity market presents a massive growth opportunity. With annual mortgage originations nearing $3 trillion, even a small market share could significantly boost the company’s revenue. Moreover, Upstart’s AI-driven business model sets it apart, and investors can acquire shares at a significant discount. Despite an 83% increase in 2023, the stock still maintains a historically low price-to-sales multiple of 3.2 times.

C3.ai (AI)

Despite the recent surge in AI stock and the growing trend of companies embracing machine learning, C3.ai (NYSE:AI) stands out as a long-standing player. The company’s track record predates the current hype, making it a compelling option for investors looking to capitalize on the growth of enterprise AI.

While analysts caution against chasing the AI stock rally, the situation has evolved. C3.ai’s stock has retraced, allowing new investors and existing shareholders to adjust their positions. Investing in C3.ai now doesn’t entail chasing hype but capitalizing on the current favorable price. With the share price nearing pre-hype levels, it’s a timely moment to consider including C3.ai in your AI-focused portfolio.

C3.ai stock gained momentum last week with impressive preliminary Q4 results and the resolution of an investigation into short-seller allegations. This week, the company made headlines by launching its generative AI product suite on Google Cloud Marketplace. The suite includes enterprise search capabilities, enabling businesses to access relevant database information efficiently.

C3.ai has gauged investor enthusiasm for AI, with its stock surging over 100% this year. However, challenges remain, including stagnant revenue growth and significant operating losses. The upcoming release of the company’s Q4 earnings report on May 31 will provide further insights into its performance.

Micron (MU)

Micron Technology (NASDAQ:MU), a prominent chip manufacturer, is poised to benefit from the AI boom. With its essential memory storage products and multi-chip packages, the company plays a pivotal role in the rapidly advancing AI revolution, positioning itself for enduring prosperity.

Over the weekend, China’s Cyberspace Administration released the findings of its security evaluation on Micron’s memory products, identifying them as a potential threat to national security. Consequently, China has directed critical infrastructure companies to discontinue purchasing Micron’s products.

Despite the broader market and tech sector experiencing significant declines, Micron’s stock remained relatively stable, with only a slight drop on Monday and maintaining a steady level on Tuesday.

Beyond geopolitical concerns, Micron’s stock performance hinges on the demand cycles for DRAM and NAND. Currently, the memory industry seems to be approaching the bottom of its cycle, which is of greater significance to investors than recent China-related posturing. Suppose conditions improve over the long term, as many bulls suggest. In that case, this is a chip maker that could do some catching up to industry leader and incumbent Nvidia (NASDAQ:NVDA) in the world of high-performance semiconductors.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.