“We’ve seen a lot of interesting technology waves in our industry – cloud, social media, mobile – but this wave of AI will be the biggest anyone has ever seen.” — Sales force CEO Marc Benioff
The rise of artificial intelligence (AI) will be a hugely lucrative opportunity for savvy investors. Here are two AI leaders who are particularly well positioned to deliver fortune-making returns to their shareholders in the years to come.
1. Palantir Technologies
Generative AI model builders like OpenAI get a lot of attention, but the best investments in AI are probably the analytics stars who can use AI to help companies get the most out of their data. Palantir Technologies (NYSE: PLTR) provides elite machine learning technology and a groundbreaking new AI platform that can do just that.
Palantir enables its customers to extract valuable insights from a variety of disparate data sources in real time. Its tools are valued by the US 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 throughout 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 an unprecedented scale.”
Its new Artificial Intelligence Platform (AIP) is also a hit among private companies. For example, Tampa General, a leading academic health system, recently chose AIP as its core analytics and artificial intelligence platform.
In particular, Tampa General credits Palantir for helping it reduce the amount of time needed to locate patients by 83%. “Less wait time for placement and reduced length of stay not only improve the patient experience, but give us the opportunity to treat more patients in need of care,” said Tampa General Hospital CEO John Couris. , on June 5.
These real-world benefits are driving customers to Palantir. Its revenue increased 21% year over year to $634 million in the first quarter, driven by a 69% increase in US commercial customers. Better yet, net income hit an impressive $106 million dollars, which represents the sixth consecutive quarter of profitability.
However, Palantir’s total commercial customer base was only 262 as of March 31. That leaves plenty of room for expansion, and Wall Street seems to agree. Analysts expect Palantir to grow earnings by more than 85% annually over the next half decade.
2. Advanced microdevices
NVIDIA (NASDAQ: NVDA) reigns supreme among AI semiconductor designers. But chip buyers are eager to support a rival. They see competition as a way to increase supply and control rising chip prices.
Get into Advanced Micro Devices (NASDAQ:AMD). This innovative chipmaker has a solid plan to take market share from Nvidia and become a force in the burgeoning artificial intelligence industry.
AMD expects data center chip revenue to grow to approximately $4 billion in 2024. For context, the company generated total revenue of $22.8 billion over the trailing 12 months. But this is just a taste of what AMD’s AI-related sales could soon become.
CEO Lisa Su projects that demand for chips that can accelerate AI workloads will skyrocket to $400 billion by 2027.
Major chip buyers like microsoft, Metaplatforms, Oracle, and OpenAI 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 horsepower and Dell.
With these lucrative opportunities in data centers and AI-enabled PCs driving its growth, AMD is projected to grow its profits by more than 30% annually over the next five years. Buy shares today and you could profit alongside this aspiring AI powerhouse.
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Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of 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 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.
Two Artificial Intelligence (AI) Stocks to Buy Now That Could Make You a Millionaire was originally published by The Motley Fool