AI Stocks: The Powerful Sector Sending Portfolios to the Moon

Stocks to buy

Just a year ago, most people were skeptical about AI. It seemed the general consensus was that this emerging technology was just the latest overhyped fad. Many figured its popularity would pass with time and prove to have little real-world, lasting value. 

So much for that. 

According to its latest earnings, Nvidia (NVDA) – the world’s largest AI chipmaker – saw its revenues rise 260% year-over-year thanks to surging demand for its AI chips. 

In fact, Nvidia’s revenues rose more than 200% in the previous quarter, too. And management said they’ll rise more than 200% in the coming quarter as well. 

That means Nvidia – a $2 trillion company – is currently in the midst of reporting three straight quarters wherein revenues more than tripled. 

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That’s wild. That level of growth at that scale is truly unprecedented. This is the first time it’s occurred in the history of American capitalism. 

It’s all thanks to AI. And this is really just the start. 

AI Is Already Minting Millions

The financial benefits of the AI Boom are showing up everywhere – not just on Nvidia’s income statement. 

Indeed, Microsoft (MSFT) – the world’s largest company – is also getting a huge boost thanks to AI. The firm recently said that Azure, its cloud business, is seeing a surge in demand as companies increasingly look to build and deploy their own AI applications. Microsoft also said that the integration of AI into devices like laptops is boosting its long-dormant PC business to its biggest growth in years. 

Other tech titans like Amazon (AMZN), Alphabet (GOOGL), and Meta (META) are also seeing a huge AI-driven lift in their businesses. 

Like Azure, Amazon Web Services and Google Cloud are benefitting from this boom as companies build and deploy next-gen AI applications via public cloud networks. Amazon’s shopping platform is using AI to improve product recommendations and shopping conversions. Alphabet and Meta’s advertising platforms are using AI to similarly improve content recommendations and ad targeting efforts. 

As a result, all four tech titans are reporting some of their best revenue growth numbers in years. Not to mention, they’re all using AI to cut costs as well, which is boosting margins and supercharging profit growth, too. 

This Boom Is Broad

Right now, AI is serving as a huge financial catalyst for the world’s largest companies. 

And the tech titans aren’t alone here. 

Super Micro Computers (SMCI) – provider of critical components for AI data centers – just reported 103% revenue growth in its most recent quarter. And it’s also guiding for over 200% growth this quarter. 

Palantir (PLTR) – creator of world-class AI software – recently said its commercial business grew by more than 30% in the last quarter of 2024, the biggest growth rate that business has reported in years. 

Symbotic (SYM) – maker of AI-powered robots to automate warehouses – grew its revenues by nearly 80% this quarter.

Across the board, AI is proving its value. 

And AI stocks are proving to be major winners. 

The Final Word on AI Stocks

Since the start of 2023, SYM stock is up more than 230%. PLTR stock is up more than 260%. NVDA stock has soared 450%, and SMCI stock has surged nearly 1,000%. Meanwhile, the boring old Dow Jones Industrial Average is up just 18%

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The stock market is splitting in two before our very eyes. 

On one side, you have AI stocks delivering massive returns and making small fortunes for their investors. 

And on the other – every other stock out there, just humming along, barely keeping up with inflation. 

Which side of this split do you want to be on?

If you’ve been investing in AI stocks and making money, congrats. Let’s double-down. This party is just getting started. 

If you’ve been avoiding AI stocks and watching others strike it rich while your portfolio barely grinds higher, then it’s time to make a change. It’s time to buy and hold AI stocks for a very profitable future. 

Despite some skepticism, we’re confident that what we’re seeing play out right now with AI and the stock market is not a bubble. The numbers prove as much. 

Bubbles occur when the market’s excess euphoria isn’t backed by the numbers. But the numbers here – over 200% revenue growth from Nvidia for three straight quarters – fully support the AI bull thesis. 

This isn’t a bubble. It’s a boom. 

Get plugged into the AI Boom before you’re left behind.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.

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