The S&P 500 shook off its dismal performance last year with a 15.9% rebound in the first half of 2023, and some Wall Street strategists believe the artificial intelligence (AI) boom will keep that momentum alive in the coming months.

For instance, Goldman Sachs analyst Ryan Hammond believes the S&P 500 is undervalued because the market has yet to fully appreciate the positive impact AI will have on the economy. And Capital Economics analyst Thomas Mathews thinks enthusiasm about AI could send the S&P 500 to 6,500 by 2025, implying 47% upside from its current level.

Here are two growth stocks that could help investors benefit from the AI boom.

1. Alphabet

Alphabet (GOOG -1.59%) (GOOGL -1.53%) reported lackluster financial results in the first quarter. Revenue rose just 3% to $69.8 billion and earnings dropped 5% to $1.17 per diluted share. Those metrics actually topped the Wall Street consensus, but economic headwinds still caused revenue growth to decelerate significantly from 23% in the prior year.

On the bright side, the bull case for Alphabet remains intact: Its subsidiary Google has a strong competitive position in digital advertising and cloud computing, two markets expected to expand at 14% per year through 2030. Google is also one of the foremost artificial intelligence (AI) companies in the world, and Ark Invest estimates that AI software revenue will increase at 42% annually through 2030.

Google dominates internet search, and YouTube is the top streaming service as measured by viewing time. Those popular web properties give the company a unique ability to engage consumers and collect data, which makes it a valuable partner to advertisers. Indeed, Google accounted for an industry-leading 30% of global digital ad spending last year, and while the company is slowly losing ground to Amazon, it will still account for 29% of digital ad spend in 2024, according to eMarketer.

Switching gears, Google is gaining ground in cloud computing. The company captured 10% market share in cloud infrastructure and platforms services (CIPS) in the first quarter, up from 8% market share in the same quarter last year. That momentum can be attributed to an improved go-to-market process and continuous product development. In fact, according to consultancy Gartner, Google is improving its CIPS capabilities faster than any other cloud provider.

Finally, Google may not have a viral AI application like ChatGPT yet, but it has been recognized as a leader in multiple AI verticals, including AI infrastructure, conversational AI platforms, and AI-powered document analytics. Google is also delving into generative AI with its digital companion Duet, which streamlines work by generating text in Google Docs, creating images in Google Slides, and analyzing data in Google Sheets. Duet can even write and review code for software developers.

Here's the bottom line: Alphabet should be able to grow revenue at a double-digit pace through the end of the decade, which makes its current valuation of 5.5 times sales look reasonable, and it's certainly a discount to the five-year average of 6.3. That's why this growth stock is worth buying right now.

2. Zoom Video Communications

Zoom Video Communications (ZM 2.42%) is a video-first cloud communications platform. Its best-known product is Zoom Meetings, the most popular videoconferencing software on the market. But its portfolio also includes enterprise phone system Zoom Phone, corporate conferencing system Zoom Rooms, and customer service software Zoom Contact Center, as well as solutions for team chat, event management, and webinars.

Zoom has also branched out to AI software with IQ for Sales  and Virtual Agent. The former leans on AI to analyze and summarize interactions in Zoom Meetings and surface actionable insights for sales agents. The latter leans on AI to understand and resolve customer issues without involving service agents. Both products make businesses more efficient, and they position Zoom to benefit from growing demand for AI software.

Zoom reported lackluster financial results in the first quarter. Revenue increased just 3% to $1.1 billion and cash from operations fell 20% to $419 million. But a few bright spots portend better days ahead. Online customer churn returned to a multi-year low of 3.1% during the quarter, and stability in that portion of the business means more sales in the future. Additionally, remaining performance obligation (RPO) climbed 16% over the past year. RPO is a leading indicator of revenue; the fact that RPO is increasing faster than revenue also hints at accelerating revenue growth in the future.

Looking ahead, Zoom estimates its total addressable market at $125 billion by 2026. That figure includes $45 billion for Zoom Meetings and Zoom Rooms, $37 billion for Zoom Phone, $21 billion for Zoom Contact Center, $19 billion for AI software, and $4 billion for webinars and virtual events. At this point, Zoom Meetings and Zoom Phone are the only products that account for more than 10% of total revenue, meaning Zoom has hardly tapped its potential.

Currently, shares trade at 4.4 times sales, a bargain compared to the three-year average of 27.1. That's why this growth stock is worth buying now.