The market for AI solutions is booming. IDC predicts $143 billion in generative AI software spending by 2027. Investing in a few well-selected entrepreneurs in this growing field could yield high returns. Buy these two AI stocks immediately.
1. AMD AMD shares have soared as investors focus on the company's potential in the Nvidia-dominated AI processor market. The company's latest AI data center chip is in high demand and might boost revenue in the coming years.
Data center GPUs are predicted to provide about $3.5 billion in revenue for AMD in 2024, a tiny percentage of its total sales but expected to expand dramatically. The MI300 launch will be the fastest in business history to generate $1 billion in revenue, according to management. A company whose annual revenue doubled over the last three years should tell investors a lot about demand.
AMD management thinks the MI300X chip's high memory bandwidth helps AI inferencing, where a model learns to anticipate from new data. In the last earnings call, management disclosed that some customers use the MI300X for AI inference and training.
Microsoft, Meta Platforms, Oracle, and Super Micro Computer are AMD's major customers. Given AMD's Ryzen desktop CPUs' rise from Intel in the PC market, the rest of the firm should do well outside of AI. These factors could boost the stock in 2024, but patient investors could see huge profits over the next decade.
2. C3.ai (NYSE: AI) uses AI to aid enterprises in demand forecasting, supply chain optimization, and other activities. The stock has fallen from its highs and may be a good buy before explosive growth in 2024 and beyond.
C3.ai is starting a major AI expenditure curve. Its subscription-based revenue strategy should help it make a profit in the future. Its customers include the federal government (54% of bookings last quarter), manufacturing, agricultural, chemicals, energy, and consumer products corporations.
The company's sales grew over 30% in 2022, but the recent switch to a consumption-based pricing strategy has halted growth, but it's starting to accelerate. New client agreements rose 85% and revenue rose 18% last quarter.
The company inked new deals with Boston Scientific and T-Mobile. A wide spectrum of sectors are interested in C3.ai's enterprise AI platform, indicating rapid growth. The stock's 34% year-over-year return might start a 10-year bull run.
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