The artificial intelligence (AI) megatrend is expected to dominate market narratives over the next decade. A report from Statista estimates the global AI market to expand from US$136 billion in 2023 to US$827 billion in 2030, indicating an annual growth rate of almost 30%. Several companies are investing heavily in AI to gain an early-mover advantage and could be poised to deliver market-beating returns to shareholders. Here are two such AI stocks that could make you a millionaire.
Super Micro Computer stock
Valued at almost US$30 billion by market cap, Super Micro Computer (NASDAQ:SMCI) has already returned 2,880% to shareholders in the last five years. However, it also trades 57% below all-time highs, allowing you to buy an AI stock at a lower multiple.
Super Micro develops and manufactures high-performance server and storage solutions, including storage systems, workstations, networking devices, server management software, and security software.
Shares of Super Micro Computer have declined following its fiscal fourth quarter (Q4) of 2024 (ended in June) results as it reported revenue of US$5.31 billion and adjusted earnings per share of US$6.25. Comparatively, analysts forecast the company to report revenue of US$5.30 billion and earnings of US$8.07 per share in the June quarter.
While Super Micro continues to experience record demand for new AI infrastructures, the company’s gross margin has narrowed from 17% to 11.2% in the last 12 months. It also disappointed shareholders by forecasting fiscal Q1 of 2025 earnings between US$5.59 and US$8.27 per share, indicating a midpoint estimate of US$7.48 per share, which is lower than consensus estimates of US$7.58 per share.
Alternatively, Super Micro Computer trades at a forward price-to-earnings multiple of 15, which is quite cheap, given it is forecast to expand earnings by 62.4% annually in the next five years.
Analysts remain bullish and expect the stock to surge over 77% from current levels.
CrowdStrike stock
Similar to Super Micro, shares of CrowdStrike (NASDAQ:CRWD) have also experienced a significant decline in share prices in recent months. Last month, a massive IT outage tied to CrowdStrike impacted more than eight million devices, driving CRWD stock lower by 39% from all-time highs.
CrowdStrike offers a portfolio of AI-powered cloud-based enterprise-facing cybersecurity solutions, making it part of a recession-resistant sector as companies are unlikely to lower their cybersecurity budgets amid a steep rise in digital crimes and related attacks.
The time might be ripe to initiate a position in CrowdStrike, given it increased sales by 42% year over year to US$692.6 million in fiscal Q1 of 2025. Its annual recurring revenue rose 42% year over year to US$2.73 billion, which should allow the tech giant to generate stable cash flows across market cycles.
Unlike other growth stocks, CrowdStrike reports consistent profits and is free cash flow positive. In fact, its free cash flow has risen from US$52 million in fiscal 2020 to US$1.01 billion in fiscal 2024. Priced at 61 times forward earnings, CRWD stock might seem expensive but it trades at a discount of more than 40% to consensus price target estimates.
