Prediction: These 2 Artificial Intelligence (AI) Stocks Are About to See Massive Growth

Artificial intelligence (AI) stocks have been rallying lately—and for good reason. This exciting technology is already generating enormous revenue growth for companies making AI products and services — and customers are investing in these tools because of AI’s promise to revolutionize their businesses. For example, AI can speed up the development of new and better drugs or make vehicles safer and easier to operate.

Investors, recognizing this promise, have piled into AI stocks, and these players have helped S&P 500 the index is up nearly 20% this year. Although AI companies have seen their shares rise, it is not too late to enter many players convincingly. In fact, it’s a great time to invest in two in particular — my prediction is that these AI companies are poised for massive growth. Let’s check them out.

Image source: Getty Images.

1. Palantir Technologies

Palantir Technologies (PLTR 1.00%) helps clients regroup their complex network of data and put it to work so they can integrate that data into their strategies and leverage its power to make key decisions. For most of its history, the 20-year-old company has relied on government contracts to drive revenue growth. But lately, a new engine of growth has emerged.

Palantir’s commercial business has taken off, helped by the company’s investment in AI. Last year, Palantir launched the Artificial Intelligence Platform (AIP), an AI-based system that helps customers quickly scale their data and discover how it can help advance their business goals. The company even came up with a brilliant way to sell the platform to potential customers – by holding bootcamps that let them experience its capabilities.

And this long-established company’s new bet is paying off. AIP drives revenue in government and commercial businesses — and commercial is now the fastest growing business. In the most recent quarter, US commercial revenue rose 55%, compared to a 24% gain for US government revenue. Palantir had just 14 commercial customers four years ago, and today has nearly 300, illustrating the progress made in a short period of time.

The fairly recent release of AIP, the strong demand for the platform, and the trading numbers we’ve seen so far suggest that explosive growth for Palantir could be just around the corner. And that means the stock could have plenty of room to run — even after recent gains — over the long term.

2. Super Micro Computer

Super Micro Computer (SMCI 4.59%) is a key behind-the-scenes player in the AI ​​world. The company makes equipment crucial to AI data center operations — from workstations to full-scale solutions. Supermicro isn’t the only gear maker around, but it has managed to grow five times faster than the industry average over the past 12 months.

The reason for the company’s success? It works hand-in-hand with the world’s best chip designers — including the market leader Nvidia — to immediately integrate their innovations into its products. Supermicro’s core technology — most products involving similar parts — also favors speed. Therefore, customers know they can quickly get a product tailored to their data centers with the latest technology when they order from Supermicro.

That’s driven major growth for the equipment company, with quarterly revenue this year surpassing annual revenue as early as 2021. In its most recent quarter, revenue was $5.3 billion, a gain of more than 140% from year to year. .

In addition, a new wave of growth may be ahead. Supermicro is well positioned to solve one of the biggest problems facing AI data centers and that is heat build-up. This is thanks to the company’s direct liquid cooling (DLC) technology. Supermicro says that in the next 12 months, up to 30% of new data centers will be equipped with DLC — and Supermicro will dominate that market.

So my prediction is that this already bullish equipment giant is headed for a new wave of sustained earnings gains — and that’s reason to be bullish on the stock’s long-term performance.