10 Artificial Intelligence Actions That Could Make You a Millionaire

One way to make money as an investor, and possibly become a millionaire or multi-millionaire in the process, is to pay attention to growing trends and expanding technologies — and invest in the companies that seem likely to dominate in those areas. Keep in mind, however, that this strategy won’t always work the way you might hope, and that it may be safer and also more powerful to just stick to low-fee, broad-market index funds. I can make you a millionaire too.

Artificial intelligence (AI) is growing faster these days, and many investors are reasonably wondering where they might invest to capitalize on AI. Here are 10 actions to consider. Each plays a significant role in the world of AI.

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10 Artificial Intelligence Actions That Could Make You a Millionaire

1. Nvidia

Most investors have heard of the semiconductor giant Nvidia (NASDAQ: NVDA) so far and either own it or wish they had it. Originally known for gaming chips, it is now not only a leader in graphics processing units (GPUs) for gaming, but also in data center chips. This bodes well for Nvidia’s future, as data centers are booming, with much of our AI work running through them. Nvidia recently had a market cap of over $2.5 trillion — and that’s after a 24% drop from its 52-week high!

2. Meta Platforms

Meta platforms (NASDAQ: META)the parent of Facebook and Instagram, among other platforms, is another player in the AI ​​arena, spending billions on AI research and incorporating AI into many of its offerings. The company also raised eyebrows by making its Llama AI model open-source.

3. Dell Technologies

You might not think of a hardware specialist Dell Technologies (NYSE: DELL) as an AI company, but remember that the proliferation of AI has meant the proliferation of servers and storage systems — which Dell supplies. The company reported robust growth in its AI-related sales.

4. Palantir Technologies

Palantir Technologies (NYSE: PLTR) is being added to the S&P 500 and for good reason, as it has become an AI software specialist with a recent market value of over $67 billion. It started with a focus on serving government clients, but expanded into the commercial field.

5. Broadcom

Broadcom (NASDAQ: AVGO) is a semiconductor specialist offering wireless, optical and AI processing chips, among others. Its AI business is doing quite well, as revenue from its AI-focused optical and networking chips grew 280% in the second quarter to $3.1 billion. Some expect it to take considerable advantage of custom AI chips as well.

6. Micron technology

Just as the AI ​​boom requires a lot of servers and data centers, it also requires a lot of memory, which is where the memory specialist Micron technology (NASDAQ: MU) come in Micron is a cyclical stock, so expect it to rise and fall with the economy.

7. Microsoft

Microsoft is involved in all sorts of technologies, from its widely used Office productivity software, to the Azure cloud computing platform, to the Xbox gaming platform and the Windows operating system, among others. Microsoft has also invested billions in ChatGPT creator OpenAI and has incorporated AI into many of its offerings.

8. Qualcomm

Qualcomm is a chipmaker that supplies many of the chips inside smartphones — not to mention cars and even home appliances. It has recently developed AI-focused chips and is poised to benefit as more AI computing begins to happen inside devices rather than in the cloud.

9. The alphabet

Alphabet dominates the search world with its Google engine, and has successfully incorporated AI into Google — without having to outsource its AI technology. Better yet, unlike many of the other companies on this list, Alphabet stock looks attractively valued at recent levels, with its recent forward price-to-earnings (P/E) ratio of 17.4 well below its five-year average of 23, 6. .

10. Advanced microdevices

Advanced microdevices is an AI chipmaker and is also entering the server business with a recent $4.9 billion acquisition of ZT Systems.

These are just 10 of them many solid AI-related and AI-focused companies.

Artificial intelligence stocks in perspective

You might be wondering why I listed 10 stocks instead of the best one or two. Well, because I don’t know what AI-involved actions will become dominant in the future. It’s easy to guess, and the companies above will certainly thrive from AI, but no one really knows how things will evolve. Also, these actions often don’t come cheap, including many of the above.

With this in mind, you might consider favoring one background of AI stocks. Or just a fund focused on tech stocks, as that would invariably have a lot of exposure to AI. It’s a good way to avoid missing out on most of tomorrow’s big winners. Some possibilities with extraordinary results:

Data source: Morningstar.com, as of September 6, 2024.

If you know a lot about AI, you might invest well in stocks that you think will be the best long-term performers. If not, consider buying a basket of AI companies, either individually or through a fund. You can ride the AI ​​boom to millionaire status by choosing any of these routes.