2 Artificial Intelligence (AI) Stocks to Buy Right Now That Could Make You a Millionaire
2024.12.09
Advances in artificial intelligence (AI) are expected to reshape vast swaths of the global economy. Fortunes will be made by savvy investors who position themselves to profit from this powerful megatrend.
To help you claim your share of the coming AI boom, here are two top tech stocks set to deliver handsome gains to their shareowners in the years ahead.
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Investors have crowned Nvidia(NASDAQ: NVDA) the early winner of the AI arms race. The semiconductor behemoth designs the cutting-edge chips that power many leading AI applications. But no business likes to be beholden to just one supplier for their most crucial computing hardware. Chip buyers want to see more competition among AI chipmakers -- and Advanced Micro Devices(NASDAQ: AMD) intends to provide it.
The stakes are massive. AMD CEO Lisa Su sees sales of chips that accelerate AI workloads growing by over 60% annually to a whopping $500 billion by 2028. AMD is just beginning to penetrate this lucrative market. The chipmaker expects sales of its graphic processing units (GPUs) used in AI data centers to top $5 billion in 2024. Yet its AI chip sales are booming -- AMD's data center revenue soared by 122% year over year to $3.5 billion in the third quarter -- and the company sees much more gains ahead.
Tech giants are eager to deploy AMD's chips in their rapidly expanding cloud computing operations. Microsoft is using AMD's MI300X accelerators to power its popular "copilot" AI assistants. Meanwhile, Meta Platforms uses MI300X chips to deliver predictions from its high-performing Llama 405B AI model. AMD's forthcoming MI325X accelerators, which promise substantial performance upgrades, should also be well received by chip buyers.
AMD has another powerful growth opportunity in the burgeoning market for AI-enabled personal computers (PC). PC makers like HP and Lenovo are set to roll out more laptops featuring AMD's new Ryzen AI Pro 300 Series processors. The chipmaker believes these high-performing AI chips will help it win market share, particularly as more businesses choose to upgrade their devices after Microsoft discontinues technical support for Windows 10 PCs in 2025. AMD is already seeing a boost in its client segment, which houses its PC-based business. Sales in the division jumped 29% to $1.9 billion in the third quarter.
While AMD wants to provide companies with the hardware they need to realize their AI ambitions, Palantir Technologies (NASDAQ: PLTR) is supplying the software. The analytics leader enables customers to discern valuable insights from their data faster than their competitors.
Palantir's top-rated machine learning technology can find patterns across disparate data sources. Its software strengthens its clients' decision-making processes, whether on the battlefield or in the boardroom. Moreover, Palantir boosts the productivity of frontline personnel by bringing advanced AI and real-time data to its customers' daily workflows.
The U.S. military is partnering with Palantir to bolster its intelligence-gathering and AI capabilities. The value of these increasingly vital services can be seen in Palantir's U.S. government revenue, which surged by 40% year over year to $320 million in the third quarter.
Companies are also beginning to recognize the value of Palantir's AI offerings. Mining giant Rio Tinto is working with the analytics leader to improve the safety and throughput of its railway network. Meanwhile, energy producers like APA and BP are using Palantir's new Artificial intelligence Platform (AIP) to make their oil and gas production operations more efficient and reliable.
Recently struck partnerships with major cloud computing providers like Microsoft and Oracle are accelerating Palantir's growth. The rapidly expanding company's U.S. commercial revenue soared by 54% to $179 million in the third quarter.
Better still, Palantir is highly profitable and cash-rich. Its Q3 net income more than doubled to $144 million, bringing its cash reserves and investments to $4.6 billion as of Sept. 30.
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia:if you invested $1,000 when we doubled down in 2009,you’d have $369,349!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,990!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $504,097!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
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, Apa, HP, Meta Platforms, Microsoft, Nvidia, Oracle, and Palantir Technologies. The Motley Fool recommends BP and 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.
