2 AI Stocks You Can Invest in Right Now for Under $100
Artificial intelligence (AI) has taken the investment world by storm, and with good reason. Its potential to disrupt traditional industries is becoming increasingly evident. The good news is, you don’t need a lot of money to get into this exciting trend. With just $100 to spare, you can buy shares of two promising AI stocks that have the potential to deliver long-term profitability.
Palantir Technologies (PLTR -5.10%) is a leading data mining and analytics company that has seen its stock price soar by nearly 157% this year. This impressive growth is largely fueled by investor enthusiasm for all things AI. Palantir’s cloud-based software offerings, such as Gotham, Apollo, and Foundry, have been leveraging AI and machine-learning algorithms to extract valuable insights from vast amounts of data. While the company initially focused on government clients, it has expanded its reach to include private organizations, reducing its dependence on the government sector. Palantir has even been recognized as a global leader among top AI and ML vendors. To tap into the growing generative AI market, the company recently launched an AI platform with large language model capabilities. This move positions Palantir to seize opportunities in a market projected to be worth $13.7 billion by 2023. In addition to its AI initiatives, Palantir has also shown impressive financial performance. The company reported a 26% year-over-year increase in revenue for its U.S. commercial business, contributing to its first-ever GAAP operating profit. With positive cash flow and a strong cash position, Palantir is well-positioned for future growth.
Lemonade (LMND -3.94%), a digital-only insurance company, is another AI stock worth considering. Lemonade has harnessed the power of AI, ML, and behavioral economics to streamline various insurance processes. The company offers efficient onboarding, quick claims processing, and 24/7 chat-based customer support services. Leveraging around 50 machine-learning models and terabytes of data, Lemonade accurately predicts customer behavior and cross-sells insurance products accordingly. The company’s focus on affordability and targeting the tech-savvy younger generation has resulted in significant growth. Lemonade’s customer count grew by 23% year over year, and its premium per customer rose by 26% in the first quarter of this year. Moreover, Lemonade has been improving its profitability. In-force premiums have increased by 56% year over year, while operating expenses have grown at a slower rate. The company’s loss ratio has also improved, despite rising inflation and natural disasters. By continuing to leverage its datasets and AI models, Lemonade aims to achieve a compound annual growth rate of 20% in in-force premiums and a loss ratio of 70% by 2027. With its solid growth potential, low valuation, and disruptive nature, Lemonade presents a compelling investment opportunity.
Both Palantir and Lemonade offer unique value propositions in the AI space. Palantir provides advanced data analytics solutions to a diverse range of clients, while Lemonade disrupts the insurance industry with its innovative approach. Retail investors can start building a position in these stocks, given their growth potential and the prevailing AI trend. While Palantir’s valuation is relatively high compared to the software industry average, its recovery and the AI tailwinds make it an attractive investment. Lemonade, on the other hand, presents a turnaround story with strong growth prospects. As with any investment, it’s important to conduct thorough research and weigh the risks and rewards before making a decision. By investing in these AI stocks, retail investors can gain exposure to the growing AI market without breaking the bank.
