These three companies stand out from the crowd.
Artificial intelligence (AI) may be the hottest investment area right now, but the good news is that you don't have to invest a lot of money to reap the benefits down the road. Many of the top prospects trade for less than $100, and in fact some of his players trade for less than $10.
Now let's say you have $100 that you want to invest in this high-growth field. With this amount, you can actually join three of my favorite AI players. Each player has a business that helps them stand out from the crowd. It's worth the bet considering the AI market is predicted to exceed $1 trillion by the end of 2020, with double-digit compound annual growth rates. This means we could be at the beginning of an exciting growth story with significant revenue potential.
So let's check out my top AI stocks. Together these are players that have the potential to grow significantly by $100 as this market takes off.
Image source: Getty Images.
1. Palantir Technologies
Palantir Technologies (PLTR -3.12%) is traditionally known for its government contracts, helping governments aggregate data and use it more effectively across a variety of projects. Lately, however, Palantir has been growing thanks to the use of AI across its platform and the idea that this AI-powered technology could be very useful for enterprises as well.
In fact, commercial use of Palantir's systems is increasing thanks to the company's launch of its Artificial Intelligence Platform (AIP) and AIP Bootcamp to show potential users how transformative this technology can be for their business. .
As a result, Palantir reported a 70% increase in U.S. commercial revenue and a 55% increase in U.S. commercial customer numbers in its most recent quarter. The business is currently driving growth, and Palantir CEO Alex Karp said he expects this trend to continue.
Palantir partners with top cloud providers and recently announced agreements that will enable its platform to be deployed around the world. oracle cloud infrastructure. All of this allows Palantir to more easily reach customers for these specific cloud services.
Palantir stock currently trades at around $21, but the growth in the U.S. commercial business is just beginning, and the stock could easily move higher from here.
2. Intel
intel (INTC -2.40%) fell behind early in the AI chip race, but there could be two potential revenue drivers ahead.The company just announced the upcoming launch of its Gaudi 3 AI accelerator, which it says has the potential to outperform market leaders. NvidiaTop chip when used with certain large language models.
Intel did not reveal the price range for Gaudi 3, but indicated that the chip will be cheaper than Nvidia's H100. And this combination of solid performance and affordability could appeal to a wide range of AI customers. Even if his most powerful Nvidia chip ever, released later this year, is more powerful, some projects may not necessarily need that strength. And those customers can choose Intel.
Intel could also benefit from opening up its manufacturing network to other companies as it aims to become the world's second-largest chipmaker by 2030. This opens up a whole new revenue stream for the company, and as the only foundry based in the United States, it could potentially appeal to many companies. Many local customers.
Intel stock is trading at around $35, which is perfect for your current $100 budget. But the aforementioned catalysts could eventually push it to even higher levels.
3. Soundhound AI
Soundhound AI (Seoun -7.31%) is an innovator in the field of voice AI, with a platform that instantly “translates” speech into meaning through automatic speech recognition and natural language understanding technology.
Currently, SoundHound serves businesses such as restaurants that use its platform to take customer orders and automakers that integrate audio into their vehicles, but in the future, SoundHound will serve businesses such as healthcare and retail Further opportunities will be created in other industries such as In fact, by 2026, the total addressable market could exceed $160 billion.
SoundHound is small at the moment, with revenue of $17 million in its most recent quarter, but demand for its audio technology appears to be strong. Revenue and adjusted EBITDA both increased 80% in the quarter, with revenue reaching record levels. The company also reported that its subscription and reservation backlog exceeded $600 million, and its annual execution rate reached 3.5 billion queries. This is a 50% increase over the previous year.
SoundHound stock soared earlier this year on news that top chip company Nvidia had invested in the company, but has since returned to around $4. This young voice AI player still has a long way to go before profitability, but today it's an attractive bet for aggressive investors who don't mind a little risk.
Adria Cimino has a position at Oracle. The Motley Fool has positions in and recommends Nvidia, Oracle, and Palantir Technologies. The Motley Fool recommends Intel and recommends long January 2025 $45 calls on Intel and options on her short May 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.
