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of course, Nvidia It’s burning. The company’s stock price has risen an astonishing 1,980% over the past five years. This means that if he invested $10,000 in 2019, he would now be worth a staggering $208,000.
However, as is often said, past performance does not guarantee future results. So, let’s consider some alternatives to the king of AI stocks. Here are three of his names that we think AI-focused investors would be wise to consider.
Advanced Micro Devices
First, Advanced Micro Devices (NASDAQ: AMD). Admittedly, AMD may not be getting as much AI buzz as its competitor Nvidia, but the company is benefiting from his AI revolution as well. In fact, AMD stock has soared 179% since January 2023.
Like Nvidia, AMD designs advanced semiconductors that can be used to train language models at scale. His latest AI-focused product is his MI300X chip, announced in December 2023. microsoftOpenAI, and meta platform All companies are interested in using this chip to replace Nvidia’s H100 chip in the current AI workhouse.
MI300X could help AMD secure a significant foothold in the AI accelerator market, especially considering cost. The selling price will be around $10,000 to $15,000, well below the H100’s price of $40,000.
First deliveries of the MI300X are taking place now, so it will take some time to see what the demand for the chip will be. However, AMD CEO Lisa Su is optimistic about both MI300X and the overall AI market. In December, she predicted the market for AI chips would reach $400 billion by 2027, up from about $40 billion in 2023. If her predictions are mostly accurate, AMD investors could be in for a lot of fun in the coming years.
oracle
next oracle (NYSE:ORCL)an AI stock that few people know about, if it even exists.
The company is perhaps best known as one of the classic “tech bubble” stocks of the early 2000s. The database software giant’s stock price soared during the first wave of Internet adoption in the late 1990s, then plummeted 84% from 2001 to 2003 during the bear market.
Nevertheless, Oracle is now back and doing great thanks to its data center business. The latest earnings report (three months ended February 29, 2024) highlights that Oracle beat expectations:
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Total revenue was $13.3 billion, up 7% year over year.
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Cloud revenue was $5.1 billion, up 25% year over year
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Net income was $2.4 billion, an increase of 27% from the same period last year.
Additionally, the company raised its forward guidance. In fact, Chief Financial Officer Safra Catz made a very optimistic statement, stating that the company is likely to exceed his $65 billion annual revenue goal by 2026. . Additionally, Chairman Larry Ellison highlighted the impact of rapid spending from hyperscalers like Microsoft. oracle needle.
In short, the AI wave is helping Oracle find itself attractive again, and investors should take note.
Palantir Technologies
At the end Palantir Technologies (NYSE:PLTR)is a company at the forefront of AI-powered big data analysis.
Some investors may find Palantir’s business model difficult to understand. In short, Palantir helps organizations run their operations more efficiently. The company accomplishes this through multiple AI-powered software platforms that analyze massive data sets, recognize patterns, and provide solutions.
On the financial front, it’s clear that Palantir is racking up wins. Customer numbers, revenue, net income, and free cash flow are all increasing. Additionally, the company has begun to pivot to the private sector, having derived much of its early revenue from government contracts.
Even today, Palantir generates more revenue from government agencies ($1.2 billion in 2023) than from commercial customers ($1 billion in 2023).
However, that could change. Palantir’s commercial revenue is up about 20% year over year, and his government revenue is up 14%. If this trend continues, Palantir’s commercial revenues will exceed government revenues by 2027.
Either way, investors shouldn’t sleep on Palantir. The company’s rapid growth means it has the potential to become the next big name in the AI investment space.
Should you invest $1,000 in Palantir Technologies right now?
Before buying Palantir Technologies stock, consider the following:
of Motley Fool Stock Advisor Our analyst team has identified what they believe Best 10 stocks What investors can buy right now…and Palantir Technologies wasn’t among them. These 10 stocks have the potential to generate impressive returns over the next few years.
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Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool’s board of directors. Jake Lerch has a position at his Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, Oracle, and Palantir Technologies. The Motley Fool recommends the following options: His long January 2026 $395 call on Microsoft and his short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
Forget Nvidia: 3 other artificial intelligence (AI) stocks to buy instead was originally published by The Motley Fool.
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