JP Morgan Chase CEO Jamie Dimon is widely regarded as one of the most visionary business leaders. Because he sits at the top of a financial services powerhouse, Dimon sees trends develop before most other companies.
In his annual letter to shareholders issued earlier this month, Dimon urged investors to prepare for the coming impact of artificial intelligence (AI).
We don't know the full effectiveness or exact speed with which AI will change our business, or how it will impact society as a whole, but the results will be extraordinary and will likely become one of the leading technologies. I am completely confident that it will be as transformative as the department. Inventions of the past few hundred years: Think of the printing press, the steam engine, electricity, computing, and the Internet, among others.
Smart investors will heed Dimon's warning and begin adjusting their investment strategies to account for AI's potentially significant impact on the global economy. Here are his two stocks you can buy right now to build a portfolio that benefits from the coming AI revolution.
1. Palantir Technologies
The biggest winners in the AI race will be those that help their customers make the most of their growing mountain of data. Palantir Technologies (NYSE:PLTR) is excelling in this increasingly important area, and its business is rapidly growing.
Palantir has developed a reputation as a valued partner of the U.S. intelligence community. The CIA reportedly used Palantir tools during the hunt for Osama bin Laden.
Palantir continues to provide critical services to the U.S. government and its allies today. In March, the U.S. Army awarded Palantir a contract worth $178 million to help build next-generation sensor and intelligence gathering stations. Palantir is also supporting humanitarian demining efforts in Ukraine and efforts to provide school-age children with safe access to in-person learning areas.
Businesses are also flocking to Palantir for the opportunity to take advantage of the huge potential benefits of new artificial intelligence platforms (AIPs). Palantir says that by combining proven machine learning technology with cutting-edge AI models and real-time data, it enables customers to complete certain tasks up to 10 times faster and with fewer resources.
The impact of these incredible productivity gains on customers is just beginning to show in Palantir's financial results. The data analytics leader's fourth-quarter U.S. commercial revenue rose 70% year over year to $131 million, driven by a 55% increase in customer numbers.
However, Palantir ended 2023 with just 221 commercial customers in the United States. Investors can expect this number to continue to grow rapidly in the coming years. Palantir recently signed new partnership with cloud software giant oracle. The partnership will give businesses easy access to Palantir's AI-powered solutions on Oracle's rapidly growing cloud computing platform, and the two companies will collaborate on cross-selling services.
2. Super microcomputer
The surge in demand for AI software is driving up sales of the hardware that powers the breakthrough technology.still super microcomputer's (NASDAQ:SMCI) Its high-performance servers and data storage systems are selling like hotcakes, and the company's stock is currently on sale.
Supermicro (as the company is known) reported revenue of $3.7 billion for the quarter ended December 31, 2023, an increase of 103% year-over-year. Earnings growth was also strong, with net income up 68% to $296 million. This AI hardware maker has gained market share thanks to its close relationships with: Nvidia. Strong demand for the semiconductor giant's AI chips is boosting sales of related computing equipment provided by Supermicro.
However, Supermicro stock has retreated from its March highs. Some investors appeared upset that Supermicro did not pre-announce financial results for the quarter ended March 31, unlike in previous quarters. This led to a sharp selloff in mid-April, and the stock is now down about 30% from its 52-week high.
Still, KeyBanc analysts expect Supermicro's share of the server market to more than double over the next year as more companies move to AI-powered computing systems. According to Global Market Insights, Supermicro claims to own the lion's share of the AI server industry, which could more than quadruple to $177 billion by 2032, resulting in significant sales and profit growth. It's supposed to be. Buy stock now and benefit with this AI infrastructure leader working to meet customers' needs for high-performance computing.
Should you invest $1,000 in a super micro computer right now?
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JPMorgan Chase is an advertising partner of The Motley Fool's Ascent. Joe Tenebruso has no position in any stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase, Nvidia, Oracle, and Palantir Technologies. The Motley Fool has a disclosure policy.
2 Artificial Intelligence (AI) Stocks to Buy Now that Could Make You a Fortune was originally published by The Motley Fool.
