Unveiling Two AI Stocks with Millionaire-Making Potential Unveiling Two AI Stocks with Millionaire-Making Potential

By: Alex Freidmen

Goldman Sachs Insights

Taking a retrospective look back to 2010, the golden era of the U.S. stock market, we see the tech sector as the tireless engine propelling equity market gains, responsible for a noteworthy 40% surge over the past 14 years.

During this transformative period, tech stocks have served as veritable treasure troves, turning humble investments into veritable treasures. Consider the remarkable ascent of Advanced Micro Devices, where $1,000 sown in 2010 would now yield a bountiful harvest exceeding $23,000. Companies like Microsoft, Amazon, and Netflix have dazzled the markets with their exponential growth. Among them, Nvidia stands out, riding high on diverse catalysts, including the latest entrant – artificial intelligence (AI).

The AI Revolution

Driven by cutting-edge technologies, the AI landscape is still in its nascent stages. A prophecy by Bloomberg stirs excitement, foreseeing AI as a revenue powerhouse, surging to a monumental $1.3 trillion in 2032 from the current estimate of $137 billion. In the pursuit of cultivating a million-dollar portfolio, AI-centric enterprises emerge as prime contenders, beckoning investors to embark on a long-haul journey.

1. Palantir Technologies: The AI Pathfinder

While behemoths like Nvidia revel in the limelight with their AI model-training prowess, the crux lies in deploying these models for tangible real-world applications. Enter Palantir Technologies (NYSE: PLTR), orchestrating this transformation through its trailblazing Artificial Intelligence Platform (AIP).

AIP serves as a cornerstone for crafting generative AI applications, seamlessly integrating large language models (LLMs) into operational workflows while offering a repository of pre-built AI applications. Palantir’s ingenious “boot camp” strategy has resonated well with clients, leading to lucrative contracts and holistic adoption of AI in business operations.

Witnessing a 55% surge in commercial customer base and contract value, Palantir pulled in a staggering $946 million in total contract value in the last quarter, indicating a robust 47% uplift from the corresponding period. The AI-powered propulsion has steered its adjusted operating margin to a commendable 37%, heralding an era of burgeoning profits.

2. Oracle: The Cloud Virtuoso

Parlaying Palantir’s software platforms, meticulously run on cloud infrastructure by Oracle (NYSE: ORCL), heralds a strategic alliance. Oracle’s cloud realm, a haven for nurturing AI models, resonates with an escalating demand that surpasses infrastructure capabilities.

Riding on a stellar 56% uptick in consumption, Oracle’s infrastructure cloud services surged to an annualized revenue run rate of $8.6 billion, a remarkable feat underpinning the AI-induced cloud upsurge. As the remaining performance obligations (RPO) skyrocketed by 53% to $99 billion, Oracle’s thriving ecosystem promises a bullish trajectory in the ensuing fiscal years.

Forecasts by Goldman Sachs augur a shimmering future for Oracle, envisioning infrastructure-as-a-service to amass a colossal $580 billion in revenue by 2030, bolstered by the AI juggernaut. With estimates proffering accelerated growth following a commendable 6% revenue surge in the last fiscal year, Oracle stands poised to capitalize on this unprecedented opportunity.

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Oracle: A Second Chance for Strategic Investment

Oracle: A Second Chance for Strategic Investment

Capitalizing on Potential Growth in Oracle

Oracle, with its sights set on a vast addressable opportunity, shows promise for consistent growth in the long term. Despite uncertainties, the stock’s trading position at 28 times forward earnings — in comparison to the U.S. tech sector’s bloated average price-to-earnings ratio of 46 — could be a wise investment. This AI stock presents itself as a hidden gem, offering investors a valuable opportunity for portfolio diversification.

Unlocking Lucrative Investments with Oracle

If you’ve ever felt like you’ve missed out on investing in the most successful stocks, Oracle’s resurgence provides a second chance worth considering. History has painted a vivid picture: Companies that were once overlooked and then recommended as “Double Down” stocks saw remarkable growth — Amazon, Apple, and Netflix being prime examples. These success stories implore investors not to overlook Oracle’s potential bright future. The opportunity to capitalize on Oracle’s growth trajectory may never be as favorable as it is now.

Currently, analysts are buzzing about a handful of companies that are on the cusp of significant growth, Oracle among them. The call to action for potential investors is loud and clear: Seize the opportunity while you still can.

Oracle’s Evolving Landscape in the Investment Realm

Oracle’s resurgence echoes tales of iconic comebacks in the investment sphere. As the market presents an array of opportunities, Oracle stands out as a strategic choice for investors eager to diversify their portfolios. The chance to invest in Oracle may very well be the lucrative opportunity you’ve been waiting for, mirroring the success stories of giants like Amazon, Apple, and Netflix. As Oracle’s growth potential continues to unfold, now is the time to delve into this promising sphere of investment.

Analysis of Historical Returns and Future Outlook

Reflecting on historical returns can illuminate pathways for future gains. Oracle’s escalating trajectory serves as a beacon for investors seeking enduring growth in the unpredictable market landscape. Embracing the strategic potential of Oracle, investors delve into a realm of possibilities that may lead to substantial returns. The alignment of Oracle’s promising future outlook with historical successes beckons investors to take a closer look at this evolving investment opportunity.

*Stock Advisor returns as of October 14, 2024. “John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.” This article was reviewed and authored independently, and the opinions expressed herein do not necessarily reflect the views of The Motley Fool.