These companies are crushing it in AI and could deliver big gains in the coming years.
The artificial intelligence (AI) market exploded last year after OpenAI’s launch of ChatGPT rekindled interest in the technology. Companies across tech have turned their businesses to the emerging sector in an effort to capture the $200 billion pie.
The AI market is developing rapidly. Data from Grandview Research projects it to expand at a compound annual growth rate (CAGR) of 37 percent and close to $2 trillion by 2030. As a result, it is not surprising that investors flock to this industry. Saw the excitement over AI Nasdaq-100 Technology Sector The index rose 67 percent in 2023, creating more than a few millionaires along the way.
The market showed no signs of slowing down. AI could potentially boost fields ranging from cloud computing to e-commerce, consumer products, autonomous vehicles, video games and more. As a result, it is not too late to invest in AI and reap significant benefits from its development in the long run.
Here are three millionaire-making AI stocks to buy this April.
1. Nvidia
This shouldn’t be too surprising to see. Nvidia (NVDA -2.68%) The company made the list after cornering the market on AI chips last year. In 2023, Nvidia has an estimated 90% market share in AI graphics processing units (GPUs), the chips necessary to train and run AI models.
Nvidia’s years of dominance in GPUs have allowed it to succeed in AI over many of its rivals, leading to a 214% year-over-year rise in its stock and revenue growth.
In its most recent quarter (the fourth quarter of fiscal 2024, which ended in January), the company’s revenue grew 265% year over year to $22 billion. Operating income rose 983 percent to nearly $14 billion. This monster growth was primarily due to a 409% increase in data center revenue, reflecting an increase in AI GPU sales.
The vast potential of AI suggests that chip demand will continue to grow, and Nvidia will likely continue to see big gains from the industry.
Data via YCharts.
Meanwhile, the chart above shows that Nvidia’s price-to-free cash flow ratio and price-to-earnings ratio (P/E) have fallen over the past year, indicating that its stock is at its best value in 12 months. is at one of the positions. . Consequently, now is the best time to consider investing in this millionaire-making AI stock before it’s too late.
2. Microsoft
Microsoft (MSFT -1.41%) A tech behemoth has risen, Excellence apple As the world’s most valuable company by market cap earlier this year. The tech giant is home to some widely recognized brands, including Windows, Office, Azure, Xbox, and LinkedIn.
However, all eyes are on Microsoft’s expanding position in AI this year. The company was an early investor in AI, sinking billions of dollars into OpenAI, a private company, in 2019. The lucrative partnership gave Microsoft access to some of the industry’s most advanced AI models and helped its stock rise more than 45% year over year. .
Microsoft has used OpenAI’s technology to introduce AI features into its product lineup and outpace its competitors. In 2023, the company added new AI tools to its Azure cloud platform, integrated aspects of ChatGPT into its Bing search engine, and boosted productivity by adding AI features to its office software suite. OpenAI’s models and Microsoft’s massive user base don’t hold back the company in AI.
Microsoft’s P/E of 37 means its stock isn’t exactly trading at a bargain. However, its prominent role in AI and $67 billion in free cash flow make its stock worth a high price, as it has the funds to continue investing in its business and maintain its lead. I wouldn’t bet against Microsoft’s ability to make even more millionaires from investors looking to hold on for the long term.
3. Advanced micro devices
The chip stock has taken center stage amid growing interest in AI, and Advanced Micro Devices (AMD -4.24%) There is another attractive investment option. The company was a bit late to the AI party as Nvidia beat it to market. However, AMD is investing heavily in the industry and has established some lucrative partnerships that could carry it into AI for the long term.
Last December, the company unveiled its MI300X AI GPU. The new chip is designed to compete directly with Nvidia’s offerings and has already caught the attention of some of the tech’s most prominent players, signing Microsoft. Meta platforms as customers.
Additionally, AMD wants to lead its space within AI by doubling down on AI-enabled PCs. According to research firm IDC, PC shipments are expected to see a big boost this year, with AI integration acting as a key catalyst. And a Canalys report predicts that 60% of all PCs shipped in 2027 will be AI-enabled.
Data via YCharts.
This chart shows that AMD stock has significant potential in the coming years. The company’s earnings may only reach $7 per share in the next two fiscal years. Multiplying this figure by AMD’s forward P/E of 47 gives the stock a value of $329.
Considering AMD’s current position, these projections would increase its stock price by 93% by fiscal 2026. Along with the growing potential in AI, AMD is a stock that can make you a millionaire.
Randy Zuckerberg, former director of market development and spokeswoman for Facebook and sister of MetaPlatforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Danny Cook has no position in any stocks. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, MetaPlatforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a Disclosure Policy.