April 16, 2024

News and Political Commentary

3 Artificial Intelligence (AI) Stocks That Could Be Worth $1 Trillion Someday

2 min read

Artificial intelligence (AI) is changing the world. It goes far beyond OpenAI’s ChatGPT and other chatbots. AI will personalize products and ads to customers. It will enable humans to work smarter and faster and may even perform certain tasks so people don’t have to.

According to a PricewaterhouseCoopers study, AI could contribute almost $16 trillion to the global economy by 2030. That means the investment opportunity extends beyond Nvidia (NASDAQ: NVDA) and other big technology companies.

Three Motley Fool contributors have identified Snowflake (NYSE: SNOW), Palantir Technologies (NYSE: PLTR), and Advanced Micro Devices (NASDAQ: AMD) as winners with the potential to grow to become trillion-dollar stocks someday. Here’s what you need to know about these three AI stocks with trillion-dollar potential.

Snowflake has partnered with Nvidia on generative AI

Justin Pope (Snowflake): Nvidia has become the household name in artificial intelligence (AI), but don’t overlook Snowflake. The data cloud company partnered with Nvidia last summer on generative AI. Snowflake is a cloud-based data platform on which customers can store, organize, share, and query their data. Snowflake’s tie-up with Nvidia is a big deal because the latter is the industry AI chip leader, which should funnel business to Snowflake as corporations integrate AI into their business.

Today, Snowflake has a $75 billion market cap. The business is doing $2.7 billion in annual revenue. Snowflake is scooping up business from top corporations, including 691 of the Forbes Global 2,000. Thanks to a usage-based billing model, its 131% net revenue retention signals that customers spend more on the platform over time.

The long-term growth opportunity is tremendous. The world is increasingly digital and creating more and more data over time. That feeds into Snowflake’s growth and doesn’t figure to change. AI models in the future will probably train on more data as AI gets more intelligent and more capable.

2024-03-03 07:00:00

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