The artificial intelligence revolution is underway, and investors have a prime opportunity to get in on the ground floor of this transformative technology by buying stocks in leading AI companies. While AI has already made its mark with products like ChatGPT, the vast potential of this powerful technology remains largely untapped. This is the ideal time for investors to identify the AI stocks poised to be long-term winners.
“We’ve seen just a tiny glimpse of what artificial intelligence can do,” said Paul Franck, an AI investor and entrepreneur. “The companies driving future AI breakthroughs are the ones investors should be focused on right now. The sky is the limit with AI’s growth runway ahead.”
Here are three AI stocks that analysts view as particularly compelling investment opportunities as the AI wave continues building:
Super Micro Computer Shines By Enabling AI Growth
Super Micro Computer has become a crucial behind-the-scenes player fueling the AI boom, manufacturing the high-powered computer servers and hardware that companies need to run resource-intensive AI applications and training. Known as Supermicro, the company’s sales have skyrocketed recently thanks to soaring demand from AI customers.
In its most recent quarter, Supermicro reported over $3 billion in revenue for the first time ever, a staggering level that exceeded its total sales for the full year just two years prior. The company’s year-over-year revenue growth rate was five times higher than others in its industry.
“Supermicro’s unique architecture allows it to rapidly incorporate the latest AI chips from partners like Nvidia into new products,” said Spencer Wright, an analyst at Loup Ventures. “With a first-mover advantage in AI systems, Supermicro is positioned to be one of the biggest winners as AI takes off.”
The company’s performance has been so exceptional that Supermicro was invited to join the prestigious S&P 500 index earlier this year, a clear vote of confidence. Investors who get in now could be richly rewarded as AI proliferates and Supermicro’s role becomes even more instrumental.
Palantir Brings AI Power to Commercial Clients
Palantir is best known for its data analytics work with government agencies, but the company has identified a huge new growth opportunity in the commercial sphere by applying its expertise to AI. Through its new Artificial Intelligence Platform (AIP), Palantir is helping businesses unlock immense value from their data using advanced AI solutions.
The company’s AI Bootcamps have been particularly effective, providing companies an easy on-ramp to experience the power of AIP. In just a few hours, Palantir can demonstrate real-world use cases uniquely tailored to a client’s operations and data. The approach is working – in the latest quarter, Palantir’s commercial customer count surged 55% as businesses clamor to harness AI.
“Palantir has cracked the code on helping companies put AI to use from day one instead of just kicking the tires,” said Dakin Reynolds of Bullpen Capital. “With such a disruptive offering, Palantir’s commercial business could grow to be exponentially larger than its government business down the road.”
At a recent AI conference, Palantir announced over 20 new marquee partnerships and client wins, showcasing accelerating momentum. The stock has been rocky lately, providing an opportune entry point for investors seeking exposure to an emerging AI leader.
Medtronic Taps AI to Improve Healthcare
While Medtronic is known primarily as one of the world’s largest medical device companies, the healthcare giant has become a pioneering force in applying artificial intelligence to improve patient outcomes and surgical practices. So far, Medtronic has earned regulatory approval for five groundbreaking AI products with more in the pipeline.
One of Medtronic’s approved AI systems is the GI Genius, which employs advanced algorithms to assist gastroenterologists in detecting even the most subtle signs of colon cancer during routine colonoscopy procedures. Another is an AI platform for spinal surgery planning that has seen “strong adoption” according to the company.
“Healthcare desperately needs an AI revolution, both to improve quality of care and help reign in skyrocketing costs,” said Samantha Quinn of SVB Securities. “Medtronic is ahead of the curve, which should translate into a major competitive advantage over rivals in lucrative medical device markets.”
With industry consolidation intensifying competition, Medtronic’s AI focus enables it to stay a step ahead. In addition to future growth from AI systems, Medtronic offers investors a dividend payout and relatively stable earnings stream from its established device businesses. This combination of growth and income makes Medtronic an intriguing AI stock pick.
While the AI’s long-term impacts remain to be seen, from personal assistants to autonomous vehicles to molecular discoveries, one thing is clear – investors have an outstanding opportunity to get in at the early stages by buying shares of pioneering AI companies today. Whether enabling the technology, empowering enterprise adoption, or transforming vital industries like healthcare, the AI revolution is just getting started.
