Tech Giants Positioning for AI Boom with Key Stock Picks

A report reveals how advancements in artificial intelligence are set to reshape the economy, spotlighting two tech stocks—Advanced Micro Devices and Palantir Technologies—expected to thrive in this burgeoning sector.

Date: 09-12-2024

AI Rating: 7

The report highlights significant advancements in artificial intelligence (AI) and their anticipated impact on the economy, indicating that savvy investors could benefit from this trend. Two stocks, Advanced Micro Devices and Palantir Technologies, are posited as key players in this AI boom.

Advanced Micro Devices (AMD)

AMD is presented as a serious contender to Nvidia in the AI chip market. The report notes that AMD's data center revenue saw a remarkable surge of 122% year over year, reaching $3.5 billion in the third quarter. This growth indicates a strong demand for AMD's products as it expands its market share in AI workloads.

Palantir Technologies

Palantir is highlighted for its software solutions that enhance decision-making for various clients, including significant contracts with the U.S. military. The report states that Palantir's net income more than doubled to $144 million in the third quarter. Furthermore, its cash reserves are now at $4.6 billion, which suggests a solid financial footing for pursuing future growth opportunities.

Both companies are positioned within expanding markets which are expected to see tremendous growth due to AI adoption. The rapid increase in revenues and profitability metrics, particularly for AMD and Palantir, could positively influence investor sentiment, leading to potential upward adjustments in their stock prices.

Stocks: AMD PLTR NVDA MSFT META HP APA BP ORCL