These two AI stocks are doing just fine.
Nine months into this year, the stock market is red hot. The S&P 500, Nasdaq Composite Index, and Dow Jones Industrial Average are all at or near all-time highs.
There is no doubt that one of the reasons for this is the boom in artificial intelligence (AI).
Let’s take a look at two AI stocks that have already made some wealth and have the potential to make even more wealth in the coming years.
Image source: Getty Images.
1. Metaplatform
When it comes to AI, size and scale matter. And no social media company has more scale than Meta Platform (META -0.09%).
At the end of the second quarter, Meta had approximately 3.3 billion daily active users (DAU). This is a huge advantage for the company in many ways, but consider the following: Meta is positioned to bring AI-powered capabilities to approximately 40% of the world’s population.
It may not guarantee success, but it’s a great start.
As for the tools themselves, the company has developed several tools under the Meta AI banner that utilize Llama 3.1 models.
Image generation Problem solving Search function Research Smart glasses
Importantly, this technology is designed to integrate with Meta’s family of apps. For example, users can ask Meta AI to generate a photo of them standing in front of the Eiffel Tower and post it to Instagram or Facebook. Similarly, users might ask Meta AI to suggest recipe ideas for an upcoming potluck dinner, and then post the ideas for those looking for inspiration.
It is still unclear whether meta-AI will become widespread. But either way, Meta remains a stock that could continue to make millionaires for years to come. The company’s huge user base generates significant advertising revenue and profits, much of which is returned to shareholders through stock buybacks and recently established dividends. This makes Meta a stock that investors shouldn’t ignore.
2. Palantir Technologies
When it comes to investing, it’s often best not to overthink it. That’s why I have to recommend Palantir Technologies (PLTR -0.70%) as an AI stock that will make you a millionaire.
The company’s business model revolves around helping organizations make sense of vast amounts of data and use it to reach actionable conclusions. This may seem like an overly simplistic business model, but a look at Palantir’s financials shows why it’s a winning formula.
In the second quarter, Palantir’s total revenue grew 27% year-over-year, with U.S. commercial revenue growing even faster at 55%. And while commercial clients are rushing to deploy Palantir’s platforms to improve efficiency, the company is still winning large contracts from its traditional sources of strength: government defense departments and intelligence agencies. There is.
On September 20, the company announced it had been awarded a five-year, $100 million contract to expand the use of its Maven smart system to the U.S. Army, Navy, Air Force, Space Force, and Marine Corps.
This is another sign that while the company is pursuing private sector customers more aggressively, government contracts remain an important piece of the puzzle. In fact, government revenue still accounts for more than half of sales.
Analysts expect the company’s sales to rise another 21% to about $3.3 billion next year. To be sure, the AI space is volatile, and Palantir stock isn’t a good choice for every investor or portfolio. But those looking for an AI stock with big upside potential need look no further than Palantir.
Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool’s board of directors. Jake Larch has no position in any stocks mentioned. The Motley Fool has a position in and recommends Meta Platforms and Palantir Technologies. The Motley Fool has a disclosure policy.
