HomeMarket News3 AI Stocks That Could Be Millionaire-Makers: May Edition

3 AI Stocks That Could Be Millionaire-Makers: May Edition

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AI stocks at the top of their game are projected to continue reaching new heights

The AI revolution is here.

It’s being implemented in business, everyday life and machines/electronics of all shapes and sizes. The companies that produce this AI and the technology that supports it are winning big, and you don’t want to miss out.

These three AI stocks are the top picks for investors looking to rake in some serious profits amidst this current boom in May. While these stocks are showing excellent performance right now, they may promise spectacular long term growth.

We’ll detail these companies’ software and services that use AI, their promising investments in the field and what their recent earnings mean for their futures.

Amazon (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock

Source: Tada Images / Shutterstock.com

Amazon (NASDAQ:AMZN) uses its massive income to seize the opportunity to grasp as much market share in AI as possible. One of Amazon’s primary AI applications it features in its cloud computing platform, Amazon Web Services (AWS). 

The company continuously seeks to provide users with the ultimate platform for building AI through AWS. With top-of-the-line chips from Nvidia and a full selection of language models, Amazon ensures it’s available through AWS. 

Amazon’s efforts have not been fruitless. Income from the AWS segment was up by $4.3 billion. Also, sales were up 17% year-over-year (YOY) in Q1. It’s no secret that Amazon has ample cash flow to continue supporting these ventures. And, its extensive cloud platform brought in just shy of $100 billion in operating cash flow for the trailing twelve months.

AMZN uses AI to optimize its e-commerce platform and has seen great success in implementations that cut costs and improve user experiences. While it has a comparatively high valuation, there is little to no doubt that it will continue to grow.

Microsoft (MSFT)

ChatGPT logo seen on the smartphone, Microsoft (MSFT) logo seen on the laptop. Microsoft Copilot

Source: Ascannio / Shutterstock.com

Microsoft (NASDAQ:MSFT) is one of the most well-known companies in the world, and the Windows developer is leading the AI revolution. After investing in OpenAI, the creator of ChatGPT, last year, Microsoft declared its position in the AI race. So, it has displayed its intention to stay at the head of the pack.

Furthermore, ChatGPT is one of the most significant language models available, capable of producing images, text and code. Microsoft has eagerly begun implementing Chat GPT’s various capabilities into its platforms. Those include cloud, Microsoft Office and workflow applications. 

Looking at Microsoft’s most recent earnings report, we can see the diversity of the company’s success. Microsoft’s cloud platform Azure brought in $35.1 billion. Moreover, business productivity platforms, such as Microsoft Office, brought in a sizable $19.6 billion. Personal computing and entertainment also saw commendable success at $15.6 billion. 

Also, with Microsoft’s massive cash pile, it is not wasting any time putting it in smart places. Microsoft is looking to make its own name in the AI field and has crafted its answer to ChatGPT and other generative AI with Microsoft Copilot. The company has slowly but surely begun to integrate the chatbot into each platform to increase user capabilities exponentially. 

Copilot already boasts thousands of users as it continues to grow. Therefore, Microsoft is a stock you can buy and hold for life while the company continues expanding to new heights. 

Oracle (ORCL)

A photo of an Oracle (ORCL stock) sign outside a building.

Source: Jer123 / Shutterstock.com

Oracle (NYSE:ORCL) is not as prominent within the cloud and AI industry as Microsoft and Amazon. Nevertheless, it is a fantastic buy. Valued much cheaper than the previous two, Oracle is a leader in database software. It is slowly ramping up its AI cloud infrastructure to be shoulder-to-shoulder with top competitors. 

The company’s most recent earnings show a 49% increase in revenue from continued investments in the cloud. Chief Executive Officer (CEO) Safra Catz notes the demand for the company’s Gen 2 AI cloud infrastructure far exceeds the supply. And this is despite the company’s extremely rapid development of cloud data centers.

With the reported over $80 billion in remaining performance obligations, it is hard to see how Oracle won’t continue its rapid growth for some time. What makes this promise even sweeter is the relatively low valuation at which Oracle still sits. 

At a forward P/E ratio of 32.79, the stock will rise exponentially in price.

On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Lim is a contributor at InvestorPlace.com and a finance content contractor who creates content for several companies like LTSE and Realtor, along with financial publications, including Business Insider, Yahoo Finance, Mises Institution and Foundation for Economic Education.

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