2 Artificial Intelligence (AI) Stocks to Buy Now That Could Make You a Millionaire

“We’ve seen a lot of exciting waves of technology in our industry — the cloud, social, mobile — but this AI wave is going be the biggest that anyone has ever seen.” — Salesforce CEO Marc Benioff

The artificial intelligence (AI) boom is set to be an enormously lucrative opportunity for savvy investors. Here are two AI leaders who are particularly well-positioned to deliver fortune-building gains to their shareholders in the coming years.

1. Palantir Technologies

Generative AI model makers like OpenAI get a lot of attention, but the best AI investments are likely to be the analytics all-stars that can use AI to help companies make the most of their data. Palantir Technologies (NYSE: PLTR) provides elite machine-learning technology and a game-changing new AI platform that can do just that.

Palantir enables its clients to extract valuable insights from a variety of disparate data sources in real time. Its tools are prized by the U.S. military and multiple government agencies.

On May 30, the company won a contract with an initial order of $153 million — and additional awards of up to $480 million — to make its AI operating system available across the Department of Defense. Palantir’s head of defense growth, Shannon Clark, said the tools will enable commanders “to make better, faster decisions across all domains at unprecedented scale.”

Its new Artificial Intelligence Platform (AIP) is also a hit with private companies. For example, Tampa General, a leading academic health system, recently chose AIP to be its core analytics and AI platform.

Notably, Tampa General credits Palantir with helping it slash the amount of time required to place patients by 83%. “Less time waiting for placement and a reduced length of stay does not just enhance the patient experience, it gives us an opportunity to treat more patients that need care,” Tampa General Hospital CEO John Couris said on June 5.

These real-world benefits are driving customers to Palantir. Its revenue rose by 21% year over year to $634 million in the first quarter, boosted by a 69% surge in U.S. commercial clients. Better still, net income was an impressive $106 million, marking the sixth straight quarter of profitability.

Yet Palantir’s total commercial customer base stood at just 262 as of March 31. That leaves plenty of room for expansion, and Wall Street seems to agree. Analysts expect Palantir to grow its profits by over 85% annually over the next half-decade.

2. Advanced Micro Devices

Nvidia (NASDAQ: NVDA) reigns supreme among AI semiconductor designers. But chip buyers are eager to support a challenger. They see competition as a way to boost supply and keep a lid on soaring chip prices.

Story continues

Enter Advanced Micro Devices (NASDAQ: AMD). This innovative chipmaker has a solid plan to wrestle away market share from Nvidia and become a force in the booming AI industry.

AMD sees its data center chip revenue growing to approximately $4 billion in 2024. For context, the company generated total revenue of $22.8 billion over the trailing 12 months. But that’s just scratching the surface of what AMD’s AI-related sales could soon become.

CEO Lisa Su projects that demand for chips that can accelerate AI workloads will soar to $400 billion by 2027.

Major chip buyers like Microsoft, Meta Platforms, Oracle, and OpenAI all reportedly plan to deploy AMD’s new AI accelerators in their data centers, according to CNBC.

AMD is also helping to bring a wave of AI-powered personal computers (PCs) to market. The chipmaker’s high-performance Ryzen 8040 Series processors will feature prominently in new AI-enabled PCs built by HP and Dell.

With these lucrative opportunities in data centers and AI PCs fueling its growth, AMD is projected to grow its earnings by more than 30% annually over the next five years. Buy shares today, and you could profit alongside this aspiring AI powerhouse.

Should you invest $1,000 in Advanced Micro Devices right now?

Before you buy stock in Advanced Micro Devices, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $808,105!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of June 10, 2024

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, HP, Meta Platforms, Microsoft, Nvidia, Oracle, Palantir Technologies, and Salesforce. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

2 Artificial Intelligence (AI) Stocks to Buy Now That Could Make You a Millionaire was originally published by The Motley Fool