Finance
2 Artificial Intelligence (AI) Stocks That Could Make You a Millionaire
Interest in artificial intelligence (AI) skyrocketed last year after the launch of OpenAI’s ChatGPT. The generative chatbot stunned the tech world with its ability to produce human-like dialogue based on prompts. OpenAI’s platform highlighted how far AI has come and its potential to boost countless industries.
As a result, dozens of tech companies ventured into AI and enjoyed big stock gains for their efforts. Companies like it Nvidia And Amazon have seen their shares rise 228% and 45% over the past twelve months, thanks to dominant positions in their respective AI areas.
However, the market is huge and appears to still have plenty of room to operate, and is expected to grow at a compound annual growth rate of 37% until at least 2030. Consequently, it may be worthwhile to invest in a company that is still in its infancy. phases of its AI journey and could deliver significant growth in the coming years as the industry evolves.
Here are two AI stocks that could make you a millionaire if you’re willing to wait.
1. Intel
Shares in Intel (NASDAQ: INTC) are up more than 115,000% since its initial public offering in 1971. The company was once the biggest name in chips and has undoubtedly created many millionaires in that time. However, over the past decade the tech giant has faced challenges, with its shares falling 3% and revenue declining.
Still, recent developments indicate that a recovery is underway, with Intel becoming an increasingly attractive way to do so investing in AI. The fall of the chipmaker and changes in the technology market forced Intel to rethink its business model. The company is reshaping its business around the semiconductor foundry market, a sector that is expected to more than double its valuation by 2022 and reach a value of $232 billion by 2032.
Intel kicked off its foundry expansion by starting to build chip factories around the world, with the US as its main focus. The company plans to build at least four U.S. manufacturing facilities. On June 11, Intel temporarily postponed construction of a factory in Israel as it continued its multibillion-dollar investment at a slower pace and kept its finances under control. The move comes after Intel announced it would sell a 49% stake in its Irish factory for $11 billion.
Chip factories won’t be cheap, but they could pay off in the long run, especially when it comes to Intel’s position in AI. While rivals like Nvidia and Advanced micro devices By prioritizing chip design and outsourcing much of their manufacturing, Intel could have a lucrative opportunity to become one of the biggest. AI chip manufacturers in the world.
Furthermore, Intel’s shares trade at 28 times their forward earnings, significantly lower than Nvidia’s and AMD’s. The numbers indicate that Intel stock is potentially the biggest bargain in AI chips. In addition to a promising shift in its business model, Intel is a stock that could make you a millionaire in the long run.
2. Apple
Apple (NASDAQ: AAPL) was slower than many of its rivals entering the AI race. The way AI-driven companies like it Microsoft and Amazon have seen their shares rise 33% and 45% since last June, while Apple’s are up a more moderate 16%. However, the company’s more gradual move into AI is not unusual for the consumer tech giant.
Apple hasn’t necessarily achieved success by being the first in a technology. The company tends to sit on the sidelines as it observes the competition, perfects its own version and then launches a product that catapults it to the top of the industry. The tech giant has used this strategy to dominate smartphones, tablets, headphones and smartwatches.
Other companies led these industries before Apple came on the scene, but have largely fallen by the wayside. Now Apple appears to be pursuing a strategy similar to AI. The iPhone maker hosted its Worldwide Developer Conference on June 10, where it debuted its new AI platform, Apple Intelligence. The company’s share price rose 12% since the announcement, allowing it to surpass Microsoft and regain its position as the world’s most valuable company by market capitalization.
Launching in September, Apple Intelligence will introduce AI upgrades across the company’s product range, including iPhone 15 Pro models and Macs and iPads equipped with M1 through M4 chips. New features like language and image generation, a smarter Siri, and editing tools will take Apple’s AI offering to the next level. Meanwhile, the new features could motivate many consumers to upgrade to the company’s newer devices to access its AI tools.
Apple’s stock isn’t much of a bargain, with a price-to-earnings (P/E) ratio of 33. However, compared to Microsoft’s forward P/E of 37 and Amazon’s of 40, Apple is a much better value if you We want to invest in AI. The company is just getting started in the industry and could be worth investing in before it’s too late.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Advanced Micro Devices, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends Intel and recommends the following options: long January 2025 calls of $45 on Intel, long January 2026 calls of $395 on Microsoft, short August 2024 calls of $35 on Intel, and short calls in January 2026 from $405 on Microsoft. The Motley Fool has one disclosure policy.
2 Artificial Intelligence (AI) Stocks That Could Make You a Millionaire was originally published by The Motley Fool
