Two AI Stocks That Can Make You a Millionaire

1. Palantir Tech Palantir Technologies is capitalizing on AI software demand. Management said the company's Artificial Intelligence Platform (AIP) is helping "significantly compress sales cycles and accelerate the rate of new customer acquisition." AIP allows firms to integrate huge language models into their operations through bootcamps, which Palantir runs to help clients understand AI's use cases and how it can improve their businesses.  

The company's business partnerships have increased significantly since AIP. Management stated on the February results call, "The demand is off the charts for AIP, with boot camps as the delivery mechanism, and we're seeing AIP drive the expanding addressable market."  

Analysts estimate Palantir's sales to rise 22% to $2.71 billion in 2024, up from 17% in 2023, due to its strength in the AI software industry. More importantly, Palantir's AI business is in its early stages of growth as the market for AI software platforms is predicted to expand 31% year through 2030, creating $279 billion in revenue.  

Keep up Palantir's strong deal momentum and its growth will increase. In Q4 2023, it landed 103 $1 million-plus transactions, nearly doubling year-over-year. Palantir's remaining performance obligations (RPO), the value of future contracts, rose 28% to $1.24 billion. RPO growth outpaces top line growth, giving the organization a strong revenue pipeline.  

The startup has teamed with Oracle to spread its AI software platform across a wider network, which should help it gain clients. Analysts expect 85% annual earnings growth for the company over the next five years due to these positive prospects. Palantir is a top AI growth stock for investors because its increasing earnings power is projected to boost shareholder rewards.  

2. ASML Holding The high demand for Nvidia chips shows that semiconductors are driving the AI revolution. These chips couldn't have been made without ASML Holding equipment. Nvidia's popular H100 processor is made on TSMC's 5-nanometer (nm) technology. ASML's extreme ultraviolet (EUV) lithography technologies help TSMC make semiconductors for this process node.  

AI is driving demand for sophisticated process nodes, which is good for ASML. Nvidia is aggressively growing AI chip production to satisfy customer demand. Foundries like TSMC are allegedly increasing major commitments to achieve that. TSMC management stated on its prior earnings call that "between 70% and 80% of the capital budget will be allocated for the advanced process technologies" out of its $28 billion to $32 billion 2024 capital expenditure budget.  

Nvidia and Apple are expected to switch to 3nm and 2nm chips, which should raise EUV machine capital expenditure. In the fourth quarter of 2023, ASML's machine orders increased due to this. In Q4 2023, the Dutch company's net bookings rose to 9.2 billion euros from 2.6 billion euros. Its order backlog was 39 billion euros. ASML's order book is predicted to rise as the AI chip market grows 38% annually through 2032, generating demand for advanced chipmaking equipment.  

TSMC will develop a third U.S. factory to make 2nm chips, which means it will order ASML's EUV lithography equipment, which has a monopoly in this market. Overall, the secular expansion of the AI chip market and ASML's dominance in EUV lithography bode well for this company. ASML stock has risen nearly tenfold in the past decade, and the lucrative semiconductor opportunity ahead suggests it could be a long-term winner.  

stay turned for development