Stocks that can generate more than 1,000% returns are typically considered millionaire makers. Today, several companies are part of the artificial intelligence (AI) race, allowing them to benefit from a rapidly expanding addressable market and gain over 1,000% in the upcoming decade.
While companies such as Nvidia and Microsoft are leading the AI segment, plenty of tech stocks are flying under the radar. Here are two such millionaire-maker AI stocks you can consider buying right now.
CrowdStrike stock
Down 30% from all-time highs, CrowdStrike (NASDAQ:CRWD) has been in the news for all the wrong reasons recently. Valued at US$66 billion by market cap, CrowdStrike’s software update crashed the Windows operating system across millions of devices last month, disrupting companies across multiple sectors.
CrowdStrike is likely to be impacted by the incident in the near term due to legal penalties and lost sales. However, investors should note that the incident was not caused by a cyberattack but by a fixable unforced error. Additionally, the pullback allows you to buy a high-growth, profitable company and benefit from outsized gains when market sentiment improves.
In the fiscal first quarter (Q1) of 2025 (ended in April), CrowdStrike increased its annual recurring revenue by 33% year over year to US$3.65 billion. As an asset-light company, CrowdStrike is able to increase its operating margin at a faster pace than sales. Its operating margin expanded by five percentage points to 22%, while adjusted earnings grew 63% to $0.93 per share.
CrowdStrike operates an AI-powered cloud-based cybersecurity platform and forecasts its total addressable market to grow to US$225 billion by the end of 2028.
CrowdStrike is also profitable on a free cash flow basis. In the last four quarters, CrowdStrike has reported a free cash flow of US$1.14 billion, up from just US$52 million in fiscal 2020.
Analysts remain bullish on CRWD stock and expect it to surge around 25% in the next 12 months.
UiPath stock
Another beaten-down AI stock is UiPath (NYSE:PATH), which trades 85% below record levels. The underperformance has continued in 2024, with the stock falling over 50% year to date.
UiPath provides robotic process automation (RPA) software to enterprises with multiple AI plugins, increasing the number of automated processes. The company’s software can automate repetitive tasks, improving the efficiency of its clients’ operations.
A report from Grand View Research forecasts the RPA market to grow by almost 40% annually through 2030 to US$30 billion, making UiPath an exciting investment option right now, given its sales in the last 12 months have totalled US$1.04 billion. While UiPath’s annual recurring revenue came in at the low end of its guidance of US$1.51 billion, it rose by 21% year over year.
Similar to CrowdStrike, UiPath is cash-flow positive and trades at a cheap valuation. Valued at a market cap of US$7 billion, UiPath’s free cash flow (FCF) in the last 12 months totalled US$411 million, up from US$152 million in fiscal 2023 (ended in January).
This means the tech stock trades at 17 times trailing FCF, which is reasonable. Given consensus price target estimates, UiPath stock is forecast to grow by 20%.
