2 Artificial Intelligence (AI) actions that could help you make a fortune

If you follow even a little tech or stock market news, you’re probably tired of reading about artificial intelligence (AI). The technology has been featured in countless headlines since early 2023, following the release of OpenAI’s ChatGPT. The advanced chatbot has reignited interest in AI, highlighted its potential to improve many industries, and motivated tech companies to target the emerging market.

However, whether or not you’ve felt tired of AI, it remains hard to deny the potentially lucrative opportunity that investing in AI presents. Despite massive investment over the past year, the market is still in its infancy. Generative technology is applied in many industries such as healthcare, education, consumer technology, cloud computing, productivity software and more. In all likelihood, the best use of AI has yet to be thought of.

Consequently, AI likely still has a lot to offer companies and new investors. So here are two AI stocks that could help you make a fortune.

1. Advanced microdevices

Despite years of success in the chip market, the AI ​​boom seemed to be catching on Advanced microdevices (AMD 0.90%) with your guard down. Last year, a surge in demand for AI models sparked a similar surge in demand for graphics processing units (GPUs), the high-performance chips that make AI possible.

AMD is no stranger to the GPU industry, holding the second largest market share (after Nvidia) in desktop GPUs for years. However, Nvidia was able to get a head start by immediately providing GPUs to AI developers in 2023, while AMD had time to catch up.

For years, AMD’s main focus has been central processing units (CPUs), where the company has achieved record highs. AMD has steadily stolen processor market share from Intel since 2017, its share increasing from 20% to 34%.

Meanwhile, AMD’s business has proven far more efficient than Intel’s. Intel boasts a 76% market share in data center processors, which earned $3 billion in the second quarter of 2024. However, AMD earned $2.8 billion from the CPU business server in the same period, with only 24% of the market.

And now AMD is making promising progress on AI GPUs. In 2024, the company released new GPUs to better compete with the incoming Nvidia Microsoftit’s Azure, Meta platformsand Oracle as clients. The AI ​​expansion is already paying off, with AMD’s data center segment posting 115% revenue growth in Q2 2024, a record for the chipmaker.

AMD stock is up more than 376% over the past five years, but could rise much more in the next half-decade thanks to artificial intelligence. The company’s forward price-to-earnings (P/E) ratio stands at 44. However, this figure is also below its 12-month average for the metric. Given its significant potential in AI, AMD is worth considering right now.

2. Apple

Apple (AAPL -0.05%) took a more reserved approach to AI than many of his peers. As companies like Microsoft and Alphabet have gone full force in the industry in 2023, Apple is only now preparing to launch its biggest AI product yet. However, its strong brand and vast cash reserves could allow it to quickly gain a strong role in the industry.

This fall, the tech giant will debut Apple Intelligence, its name for a wave of AI updates to its product lineup. The software overhaul will bring speech, image and audio generation features to its iPhones, Macs and iPads. The launch of Apple Intelligence will follow the launch of the iPhone 16 in September, the company’s first smartphone designed with AI in mind.

Apple has made Apple Intelligence available only for its newer and more powerful devices. As a result, iPhone users will need an iPhone 15 Pro or higher to access the new AI features. Meanwhile, Macs and iPads will require M1 through M4 chips.

Apple has seen repeated declines in its product segments over the past year amid weak overall consumer spending power and low market share in crucial markets such as China. However, earnings results for the fiscal third quarter of 2024, which ended June 29, suggest that new AI-focused product launches could help boost sales.

Revenue rose 5% year-over-year during the quarter. The period was boosted by a 24% increase in iPad sales thanks to the May launch of the new iPad Air and Pro models, the first new iPad launches since 2022. As a result, a similar refresh to its other products could boost further sales in the coming months, especially with AI as a factor.

Competitors such as Microsoft, Amazonand Alphabet they mainly focused on the business side of AI. However, Apple’s priority of putting AI in the hands of consumers could go a long way in securing a strong position in the industry.

Apple’s forward P/E is high at 34. Still, with $104 billion in free cash flow and a strong brand, Apple stock remains an attractive way to invest in AI, and one that could a fortune