As we near the end of the year, the stock market is on fire, with major indices like the S&P 500, Nasdaq Composite, and Dow Jones Industrial Index reaching unprecedented heights. One key driver of this growth is the rapid advancement of artificial intelligence (AI). Let’s explore two AI powerhouses that have already generated significant wealth and have the potential to create even more fortunes in the years to come.
When it comes to AI, having a massive user base and vast resources can be a game-changer. This is precisely what Meta Platforms (NASDAQ: META) brings to the table. With nearly 3.3 billion daily active users, Meta has an unparalleled scale that enables it to introduce AI-powered features to a staggering 40% of the global population. Its Meta AI division, fueled by the Llama 3.1 model, has developed a range of innovative tools, including image generation, problem-solving, search capabilities, research, and smart glasses. These cutting-edge technologies are designed to seamlessly integrate with Meta’s suite of apps, allowing users to generate content, find solutions, and share ideas with ease.
While it’s uncertain whether Meta AI will achieve mainstream success, the company’s sheer size, user base, and revenue streams make it an attractive investment opportunity. Meta’s massive ad revenue and profits are being funneled back to shareholders through stock buybacks and its newly instituted dividend, making it a stock that savvy investors shouldn’t overlook.
Another AI stock that warrants attention is Palantir Technologies (NYSE: PLTR). This data analytics powerhouse helps organizations make sense of vast amounts of data, driving informed decision-making. Despite its seemingly simple business model, Palantir’s financials tell a different story. In the second quarter, the company’s total revenue surged 27% year over year, with U.S. commercial revenue skyrocketing 55%. Government contracts remain a vital part of Palantir’s business, with a recent $100 million deal to extend its Maven smart system to the U.S. Army, Navy, Air Force, Space Force, and Marine Corps. Analysts expect Palantir’s sales to jump 21% next year, reaching approximately $3.3 billion. While the AI landscape is inherently volatile, Palantir’s massive upside potential makes it an attractive option for investors seeking to capitalize on the AI boom.
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