If you'd like to add some top-tier growth stocks to your investment portfolio in 2024, read on. The following two businesses are set to deliver bountiful, AI-fueled profits to their shareholders in the years ahead.
Palantir Technologies
Organizations of all sorts are scrambling to reap the benefits of the latest advances in artificial intelligence (AI). And they're increasingly turning to Palantir Technologies (PLTR 3.73%) to harness the power of this game-changing technology.
Palantir excels at helping its clients gather actionable insights from their ballooning stores of data. The U.S. Department of Defense has long relied on Palantir to bolster its data-mining capabilities. That relationship continues to bear fruit. On Dec. 15, the U.S. Army and Palantir extended their partnership. Palantir received a contract valued at $115 million to continue its efforts to strengthen the Army's real-time data analysis and decision-making platforms.
Palantir is also bringing its top-tier data-analysis tools to the private sector. Its new artificial intelligence platform (AIP) combines machine learning technology with access to the most powerful AI models. Companies that tested AIP reportedly experienced incredible results. One customer claimed to achieve their objectives 10 times faster with three times fewer resources, while another said it built in a day that which would otherwise have taken months. Unsurprisingly, given these potential benefits, interest in AIP is "unlike anything we have seen in the past twenty years," according to CEO Alex Karp.
Palantir's revenue grew by 17% year over year to $558 million in the third quarter. Meanwhile, its adjusted operating income more than doubled to $163 million. With demand for its AI-powered data solutions likely to drive its sales and profits sharply higher in the coming years, Palantir is an intriguing growth stock to buy today.
The Trade Desk
Ad dollars chase eyeballs. So as consumers shift their eyes from traditional media, such as television and radio, to online options like streaming video and podcasts, ad spend is going digital. The Trade Desk (TTD 1.67%) and its shareholders are set to benefit from this global trend.
The Trade Desk operates a platform that helps marketers optimize their online ad campaigns. But unlike Google owner Alphabet and Facebook parent Meta Platforms, The Trade Desk does not possess its own digital media empire. This independence makes it an attractive partner for the myriad of companies that compete with these and other digital media giants. Examples include an alliance with Walt Disney, which allows The Trade Desk to offer ad placements on Disney+ and Hulu, as well as a promising collaboration with Walmart that has The Trade Desk providing ad-targeting technology to the retail titan's fast-growing ad network.
To press its advantage, The Trade Desk debuted its new Kokai media-buying platform in June. Kokai uses advanced AI and machine learning technology to help marketers buy the right ad for the right price at the right time.
The Trade Desk is already growing at a solid clip. Its revenue and adjusted net income climbed 25% and 29%, respectively, to $493 million and $167 million in Q3. Yet these figures still represent just a tiny portion of a global digital-ad and marketing market that's projected to reach $1.5 trillion by 2030, according to ResearchAndMarkets.com. With its AI-powered ad-targeting tools set to help it capture a far larger share of this massive industry, The Trade Desk's stock is an attractive investment for 2024 -- and the years that follow.
