This article was first published on our U.S. website.

“We’ve seen a lot of exciting waves of technology in our industry — the cloud, social, mobile — but this AI wave is going be the biggest that anyone has ever seen.” — Salesforce CEO Marc Benioff

The artificial intelligence (AI) boom is set to be an enormously lucrative opportunity for savvy investors. Here are two AI leaders who are particularly well-positioned to deliver fortune-building gains to their shareholders in the coming years.

1. Palantir Technologies

Generative AI model makers like OpenAI get a lot of attention, but the best AI investments are likely to be the analytics all-stars that can use AI to help companies make the most of their data. Palantir Technologies (NYSE: PLTR) provides elite machine-learning technology and a game-changing new AI platform that can do just that.

Palantir enables its clients to extract valuable insights from a variety of disparate data sources in real time. Its tools are prized by the U.S. military and multiple government agencies.

On May 30, the company won a contract with an initial order of $153 million — and additional awards of up to $480 million — to make its AI operating system available across the Department of Defense. Palantir’s head of defense growth, Shannon Clark, said the tools will enable commanders “to make better, faster decisions across all domains at unprecedented scale.”

Its new Artificial Intelligence Platform (AIP) is also a hit with private companies. For example, Tampa General, a leading academic health system, recently chose AIP to be its core analytics and AI platform.

Notably, Tampa General credits Palantir with helping it slash the amount of time required to place patients by 83%. “Less time waiting for placement and a reduced length of stay does not just enhance the patient experience, it gives us an opportunity to treat more patients that need care,” Tampa General Hospital CEO John Couris said on June 5.

These real-world benefits are driving customers to Palantir. Its revenue rose by 21% year over year to $634 million in the first quarter, boosted by a 69% surge in U.S. commercial clients. Better still, net income was an impressive $106 million, marking the sixth straight quarter of profitability.

Yet Palantir’s total commercial customer base stood at just 262 as of March 31. That leaves plenty of room for expansion, and Wall Street seems to agree. Analysts expect Palantir to grow its profits by over 85% annually over the next half-decade.

2. Advanced Micro Devices

Nvidia (NASDAQ: NVDA) reigns supreme among AI semiconductor designers. But chip buyers are eager to support a challenger. They see competition as a way to boost supply and keep a lid on soaring chip prices.

Enter Advanced Micro Devices (NASDAQ: AMD). This innovative chipmaker has a solid plan to wrestle away market share from Nvidia and become a force in the booming AI industry.

AMD sees its data center chip revenue growing to approximately $4 billion in 2024. For context, the company generated total revenue of $22.8 billion over the trailing 12 months. But that’s just scratching the surface of what AMD’s AI-related sales could soon become.

CEO Lisa Su projects that demand for chips that can accelerate AI workloads will soar to $400 billion by 2027.

Major chip buyers like Microsoft, Meta Platforms, Oracle, and OpenAI all reportedly plan to deploy AMD’s new AI accelerators in their data centers, according to CNBC.

AMD is also helping to bring a wave of AI-powered personal computers (PCs) to market. The chipmaker’s high-performance Ryzen 8040 Series processors will feature prominently in new AI-enabled PCs built by HP and Dell.

With these lucrative opportunities in data centers and AI PCs fueling its growth, AMD is projected to grow its earnings by more than 30% annually over the next five years. Buy shares today, and you could profit alongside this aspiring AI powerhouse.

The post 2 Artificial Intelligence (AI) Stocks to Buy Now That Could Make You a Millionaire appeared first on The Motley Fool Canada.

More reading

• Here’s the Average TFSA and RRSP at Age 45
• Billionaires Sold Nvidia Stock and Bought This Canadian Stock in Bulk Last Quarter
• Nvidia Stock Is Interesting, But Here’s What I’d Buy Instead

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool recommends Advanced Micro Devices, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.

Shares of Shopify (NYSE: SHOP) gained more than 20% in value last month, according to data provided by S&P Global Market Intelligence, after the multichannel commerce platform reported another quarter of impressive growth.

So what

Shopify’s second-quarter revenue surged 48% year over year to $362 million, driven by strong demand for the company’s online and offline retail operating solutions.

“Our strong performance in the second quarter reflects the success of our ongoing activities and investments to help merchants start selling, sell more, and sell globally,” CFO Amy Shapero said in a press release. “The appeal of entrepreneurship is universal, which is why more entrepreneurs everywhere are attracted to Shopify.”

Now what

In addition to Shopify’s strong second-quarter results, investors are growing increasingly excited about its new fulfillment network. The company’s fulfillment centers will store and ship its merchants’ products across the U.S. Shopify will also provide inventory optimization and other cost-reduction tools to its customers. And, as a key point of differentiation with Amazon.com, Shopify will enable its merchants to display their own brands on customized packaging.

Still, Shopify’s share price has pulled back about 10% in recent days along with other growth stocks. Short-term-minded traders appear to be growing concerned that the U.S. economy could fall into a recession, making them reluctant to pay a premium for fast-growing businesses.

But with its new fulfillment network likely to fuel its growth for many years to come, Shopify’s stock represents a compelling profit opportunity for long-term investors.

The post Why Shopify Stock Jumped 21% in August appeared first on The Motley Fool Canada.

More reading

• 2 TSX Stocks Priced Under $50 That Could Have Meaningful Room to Run
• How to Generate $150 in Passive Income With $30,000 in 3 Stocks
• 2 Canadian Stocks That Just Raised Their Payouts Again
• Have $2,000? These 2 Stocks Could Be Bargain Buys for 2026 and Beyond
• Looking for a 5.4% Average Yield? These 3 TSX Stocks Are Worth a Look