Artificial intelligence (AI) is already transforming huge portions of the global economy and it's only really just getting started in those efforts. As AI is incorporated into companies' operations to boost productivity and slash costs, it should also bolster the growth and profitability of the companies that harness its power.
Businesses that provide the most innovative and useful AI tools improve their chances to succeed, becoming leaders in their industries as well as delivering fortunes to their investors in the coming years.
Read on to learn about three of these AI leaders who could help their investors stake a claim on the AI gold rush now underway.
1. Symbotic
Moving goods from suppliers to customers is getting more expensive. Labor disputes, higher fuel prices, and geopolitical disruptions are fouling supply chains. Symbotic (SYM 3.10%) wants to serve as the solution to rising logistics costs by using AI to automate warehouse operations.
NASDAQ: SYM
Key Data Points
According to the company, Symbotic's high-density system and autonomous robots can reduce facility square footage requirements by up to 60%. Trailers can be loaded in minutes rather than hours, and orders can be fulfilled with 99.99% accuracy with less cost. Together, these benefits could help customers save an estimated $250 million over 25 years from a $50 million investment in Symbotic's technology.
Retailers are taking notice. Walmart is installing Symbotic's software and robotics platform in all 42 of its regional distribution centers. The retail behemoth expects Symbotic's tech to strengthen its order fulfillment, inventory management, and freight shipping operations.
Unsurprisingly, Symbotic is growing quickly. Its revenue surged 78% year over year to $312 million in the quarter ended June 24.
Moreover, Symbotic's losses are narrowing as it scales its business. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss improved to $3 million from $22 million in the year-ago quarter. Profitability should come in time as more scale efficiencies kick in.
Better still, Symbotic has a lot of space for further expansion. The automation leader places its addressable market at a staggering $350 billion.
2. CrowdStrike
More of the world is moving to the cloud every day. This global megatrend is making effective cybersecurity a necessity for businesses of all sizes. CrowdStrike (CRWD +3.03%) helps to defend the cloud from nefarious actors and it's poised to generate solid returns for its shareholders along the way.
NASDAQ: CRWD
Key Data Points
CrowdStrike is a leader in endpoint security. Endpoints are devices that connect to corporate networks from outside their traditional cyber defenses. This includes smartphones, laptops, and other mobile devices, as well as digital point-of-sale systems and Internet of Things (IoT) sensors.
AI lies at the heart of CrowdStrike's cyber defense system. The cloud sentinel uses advanced machine learning technology to bolster its threat-detection capabilities. By analyzing over 2 trillion cyber events each day, CrowdStrike's system constantly grows smarter. When a new threat is detected, it sends real-time upgrades across its network, ensuring its clients are protected.
Business, in turn, is booming. CrowdStrike's revenue jumped 37% year over year to $732 million in the quarter that ended July 31, while the company's free cash flow increased 39% to $189 million.
Plenty of growth still lies ahead. CrowdStrike sees its addressable market growing from $76 billion today to $158 billion by 2026.
3. Palantir Technologies
Generative AI is all the rage. But cutting-edge software is needed to harness the full potential of this innovative tech. Enter Palantir Technologies (PLTR 4.30%). The analytics specialist's machine-learning solutions can help governments and businesses make the most of the large language models that power generative AI applications.
NASDAQ: PLTR
Key Data Points
Palantir's data analysis tools are prized by the U.S. military and its allies. In June, Palantir won a contract from the U.S. Special Operations Command worth up to $463 million to accelerate its critical decision-making abilities.
Yet it's the private sector that will be key to Palantir's growth. CEO Alex Karp went so far as to say there's an "infinite market" for the company's new AI solutions.
Energy company BP used Palantir's software to slash its production costs at one facility by 60%. Meanwhile, drug makers like Novartis are working with Palantir to hasten their research and development pipelines.
Customers, in turn, are flocking to Palantir's platform. Its U.S. commercial client count grew in the second quarter by 35% year over year to 161.
Looking ahead, Palantir sees its adjusted operating profits surging by 37% to $576 million in 2023. With much more growth still ahead for the company, investors who buy this AI leader's shares today should be well rewarded.
