2 AI actions that could create sustainable generational wealth

Artificial intelligence (AI) is creating tremendous new opportunities in computing software and hardware. The AI ​​market is expected to grow at an annual rate of 28% until 2030 to reach $826 billion, according to Statista.

This growth is sure to lead to a skyrocketing value of some stocks in the years to come. Here are two great picks to help you take advantage of this opportunity.

1. Palantir Technologies

The floodgates of enterprise investment in AI are beginning to open. Palantir Technologies (PLTR 1.55%) reported accelerated growth for its AI software platforms. The stock has doubled in the past year, which could be just the beginning of a long run of returns for investors.

Palantir delivers strong revenue growth because it sells software that helps its clients gain a structural advantage over their competitors. Here are some examples of how companies are using the product.

• Lowe‘s uses Palantir software to speed up the completion of customer service tasks.
• In healthcare, Palantir helps Cleveland Clinic better estimate bed capacity and demand.
• Cereal producer General Mills uses Palantir to gain better insight into order flow and plan its supply chain.

General Mills saves $14 million annually with Palantir. That gives investors an important insight into why Palantir’s U.S. commercial revenue jumped 55% year-over-year last quarter.

Research company Gartner found that 92% of companies plan to invest in AI-based software, which is quite important for Palantir’s future. That could push the AI ​​software market to nearly $300 billion by 2027. That’s a boon for a company with just $2.5 billion in revenue.

Investors should expect ups and downs along the way. Shares don’t grow in a straight line, but the long-term growth of Palantir’s business should provide massive returns for investors.

2. Advanced microdevices

Investors are big on the prospects of Advanced microdevices (AMD 2.11%) due to its data center opportunity. It is the second largest graphics processing unit (GPU) manufacturer behind Nvidiawhich positions AMD well in the growing $250 billion data center market. AMD’s data center revenue grew 115% year-over-year in the second quarter.

However, other emerging opportunities add to its growth prospects. Revenue from AMD’s customer segment, including PC processor sales, is booming right now, with revenue up 49% over last year. Demand for AMD’s Ryzen central processing units (CPUs) should only increase in the coming years as a new generation of AI-optimized PCs hits the market.

AMD’s Ryzen AI 300 series laptop processors are getting positive reviews, and the company anticipates more products in the coming quarters from major PC brands such as ASUSTEK computer, HPand Lenovo. This positions AMD for additional market share gains against Intel on the CPU market.

Adoption of AI PCs is a strong growth catalyst for AMD, given that its customer segment accounts for a quarter of total revenue. Opportunities to supply GPUs to data centers for AI workloads and processors for AI computers could propel the stock to monstrous gains over the next decade.

With shares trading around 35% off their 52-week high, now is a great time to invest before more upside sends shares higher.