Almost every investor has the same dream -- to become a millionaire. For some, it's a goal that must be met before they can comfortably retire. For others, it's just about reaching a critical milestone along their investing journey. Regardless of why an investor wants to hit that goal, they all have the same idea: achieve it as fast as possible. Sometimes, this involves taking unnecessary risks, which end up hurting investors over the long term.
Artificial intelligence (AI) investing is one way investors may cut corners, as the promise of AI upside seems to be a quick ticket to achieving the illustrious status. But investors need to beware, as several AI investments are overvalued and may not work out. Still, plenty of companies with AI products are worth an investment and may provide outsized returns that speed up your goal of becoming a millionaire.
Becoming a millionaire doesn't happen overnight
To achieve millionaire status, you'll need one of two things: time or money. It's not unfeasible to assume these stocks may double in five years or less, which would be a compound annual growth rate (CAGR) of 15%. So, if you had $500,000, you could invest that into this trio and be a millionaire in under five years (if they all work out). Few people have that amount sitting around, so they need time and constant contributions.
If you have a much longer time horizon, say 20 years, you could become a millionaire by investing $50,000, contributing $500 monthly, and beating the market by 2% (a 12% annual return).
There are many paths to take to become a millionaire, but incrementally beating the market is a key part of accelerating that timeline. Fortunately, these three AI stocks give investors the best chance to do that.
AI is just one part of the growth story for this trio
The three AI stocks that I think can steadily beat the market are Amazon (AMZN +2.05%), CrowdStrike (CRWD 3.97%), and UiPath (PATH 5.63%).
While Amazon may seem like an odd member of this list, its cloud computing division, Amazon Web Services (AWS), is vital to AI integration. AWS stores massive amounts of data needed to run AI models and has the computing power needed to create these models. Amazon also recently invested $4 billion in Anthropic, a generative AI company. This will give AWS developers the tools they need to create various applications that use generative AI, making Amazon a key player in this space.
NASDAQ: AMZN
Key Data Points
CrowdStrike deploys AI as a part of its cybersecurity strategy, and its threat graph has become the industry standard for protecting network endpoints. By utilizing a branch of AI known as machine learning, CrowdStrike's platform recognizes the patterns of an attack and uses this information to stop breaches before they can do much damage. With cyberattacks only expected to increase, CrowdStrike's product will become even more vital than it already has. With the company growing its annual recurring revenue by 37% to $2.93 billion in the latest quarter, it's also an outstanding growth company.
Finally, UiPath is the market leader in robotic process automation (RPA) technology. This is a logical step for many companies to take in their automation path, as UiPath's software can automate simple tasks, which improves employee productivity. However, when UiPath is combined with the power of AI, the tasks it can do significantly expand, as it can scrape data from email, monitor which tasks could be automated, or understand legal documents. According to Polaris Market Research, the RPA market opportunity may be small at $2.7 billion right now, but it's expected to explode to $66 billion by 2032. This incredible upside makes UiPath a great candidate for a stock that could help you achieve millionaire status.
NYSE: PATH
Key Data Points
This trio is an excellent combination of companies that will benefit from AI integration, although in different ways. While nothing is guaranteed, each looks like it has the potential to be a market-beating investment over the next decade, which will accelerate your path to becoming a millionaire regardless of how you start.
