The rise of artificial intelligence (AI) has captured the attention of investors looking to capitalize on the potential for outsized gains. Companies at the forefront of AI technology have demonstrated impressive growth, and their stocks have reflected this trend. In this article, we will explore three AI stocks that have the potential to make investors millionaires.
First on the list is Palantir (NYSE: PLTR). This company has been using machine learning and other AI tools to provide analytical insights to clients in sectors such as national defense and commercial industries. The success of its platforms has translated into revenue and profit growth. However, the company’s latest offering, the Palantir Artificial Intelligence Platform (AIP), could take its AI capabilities to the next level. AIP utilizes generative AI technology, and the company has been actively promoting it through boot camps that help clients discover practical ways to leverage the technology. Clients who have participated in these boot camps have reported significant productivity gains, such as producing outputs 10 times faster with fewer resources. Although the impact of AIP has yet to be fully reflected in Palantir’s financial numbers, investors remain optimistic about the company’s future. With a stock that has already surged 110% in the past year, the potential for further gains could bring investors closer to becoming millionaires.
Next up is Super Micro Computer (NASDAQ: SMCI), a provider of IT solutions including servers for big data, cloud computing, and other applications. The company has gained attention for its servers powered by Nvidia’s AI chips. With a vast manufacturing space and operations in over 100 countries, Supermicro is well-positioned to meet the growing demand for AI technology. Interest in its products has skyrocketed, with revenue increasing by 58% year-over-year in the first six months of its fiscal 2024. Despite higher operating expenses, investors remain focused on the company’s AI opportunity. The stock has risen by an impressive 695% over the past year and continues to show potential for substantial gains. With a relatively moderate price-to-earnings ratio and forward earnings ratio, investors may still have an opportunity to profit from Supermicro’s AI advancements.
Lastly, we have Upstart Holdings (NASDAQ: UPST), a company that aims to disrupt the loan evaluation business using AI. Upstart has identified loan opportunities that have been overlooked by traditional scoring tools like Fair Isaac’s FICO scoring tool, allowing its lending clients to approve more loans without increasing their risks. The FICO score model has remained largely unchanged since its launch in 1989, making it susceptible to disruption. Upstart’s revenue took a hit due to rising interest rates, a small client base, and dependence on two major clients. However, signs of recovery have emerged, with revenue increasing by 3% in the third quarter of 2023. With a price-to-sales ratio at a fraction of its previous standing, Upstart presents a considerable opportunity for investors once more banks adopt its platform as an alternative to the FICO score model and interest rates start to decline.
Investing in AI stocks can be a lucrative venture, with the potential to turn investors into millionaires. Palantir, Super Micro Computer, and Upstart Holdings are three companies that have demonstrated promising AI capabilities and growth potential. While there are risks associated with these investments, careful consideration and understanding of the market can lead to substantial returns.
