The current market pulse is ablaze as the year unfolds, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Index hovering at or eclipsing all-time peaks.
Amid this fervor lies a driving force: the reigning artificial intelligence (AI) surge.
Herein, we delve into two AI entities that have not only sculpted wealth for a few but also harbor the potential to sculpt riches for the masses in the days ahead.
Image source: Getty Images.
1. Meta Platforms Dominance in AI
In the realm of AI, magnitude and reach reign supreme, and among social media empires, none commands a larger domain than Meta Platforms (NASDAQ: META).
By the conclusion of the second quarter, Meta touted nearly 3.3 billion daily active users (DAUs). This stat wields immense advantages for the entity on many fronts, not least being the capability to unveil its AI-driven marvels to approximately 40% of the global populace.
While not a guaranteed triumph, this statistic lays a fertile foundation.
In the arsenal of tools lies Meta AI, propelled by its Llama 3.1 model:
- Image generation
- Problem solving
- Search capabilities
- Research
- Smart glasses
Crucially, the technology is meticulously crafted to seamlessly integrate within Meta’s suite of apps.For instance, users can summon Meta AI to conjure an image of them against the backdrop of the Eiffel Tower, subsequently sharing it on Instagram or Facebook. Likewise, one can prompt Meta AI for potluck menu ideas, subsequently heralding inspiration to peers.
The question looms as to whether Meta AI will soar to great heights. Nevertheless, regardless of the outcome, Meta stands strong as a contender for constructing millionaires ad infinitum.The entity’s colossal user base is birthing substantial ad revenues and profits — a significant share of which is bestowed upon shareholders through stock repurchases and its nascent dividend scheme. This renders Meta an indispensable stock on every investor’s radar.
2. Palantir Technologies: A Trusty Pick
In the investment realm, simplicity often champions success. Hence, I vouch for Palantir Technologies (NYSE: PLTR) as an AI gem that stands poised to mint millionaires.
At the core of the company’s ethos lies aiding institutions in unraveling colossal troves of data to glean actionable insights.
While this premise might seem elementary, a glance at Palantir’s financial metrics underscores why it’s a juggernaut:
In the second quarter, Palantir witnessed a 27% surge in total revenue year over year, with U.S. commercial revenue soaring by a brisker 55% pace. Amidst the commercial milieu’s fervor to embrace Palantir’s platform for enhanced efficacy, the company continues to clinch hefty accords from its historical bulwark: governmental defense limbs and intelligence bureaus.
On Sept. 20, the company trumpeted a five-year, $100 million pact to prolong the application of its Maven smart system across the U.S. Army, Navy, Air Force, Space Force, and Marine Corps.
This move underscores that while the entity is intensifying its focus on private-sector clienteles, government contracts retain an indelible essence. Indeed, government-sourced revenues still constitute over half of the total revenue pie.
Market analysts prognosticate a further 21% climb in the company’s revenue next year, reaching approximately $3.3 billion. Granted, the AI arena fancies volatility, with Palantir stock not universally tailored for every investor or fund. Nonetheless, for those seeking an AI stock with monumental growth opportunities, Palantir emerges as the quintessential candidate.
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Randi Zuckerberg, an erstwhile director of market development and advocate for Facebook as well as the sibling to Meta Platforms CEO Mark Zuckerberg, serves on The Motley Fool’s directorial board. Jake Lerch retains no stake in any of the aforementioned stocks. The Motley Fool sustains positions in and commends Meta Platforms and Palantir Technologies. The Motley Fool respects a transparency protocol.
These insights and viewpoints encapsulate the author’s own musings and may not inexorably mirror Nasdaq, Inc.’s stance or views.
