There are about 24 million millionaires in the U.S., which is approximately the population of Florida. And while a million dollars doesn't go as far as it used to, it's still a healthy sum.
The stock market, and artificial intelligence (AI) stocks in particular, can offer an excellent pathway for those looking to crack the $1 million mark. So, let's examine two AI stocks primed to make (more) millionaires: CrowdStrike (CRWD 1.75%) and Amazon (AMZN 0.47%).
Image source: Getty Images.
CrowdStrike
Let's face it, cybercrime is out of control. The most recent evidence is the CDK Global ransomware event that affected tens of thousands of car dealerships across the U.S., causing them to revert to pen-and-paper procedures as critical software for sales and repairs became unavailable.
NASDAQ: CRWD
Key Data Points
One way for organizations to prevent these attacks is AI-powered cybersecurity, like the kind developed by CrowdStrike. The company's cybersecurity platform monitors customers' networks and proactively identifies threats. What's more, the platform benefits from a strong network effect -- as more customers sign up with CrowdStrike, the company's AI becomes more effective.
The benefit of CrowdStrike's software is reflected in the company's outstanding financial results. CrowdStrike's trailing-12-month revenue has skyrocketed from $250 million to $3.3 billion -- a more than 10x increase -- in only five years. In addition, analyst estimates for next year's revenue have increased to $5.1 billion.
CRWD Revenue Estimates for Next Fiscal Year data by YCharts
Simply put, the company is riding a wave of demand for better, more agile cybersecurity solutions as the number of attempted cyberattacks continues to skyrocket. Growth-oriented investors should consider owning CrowdStrike stock now and for many years to come.
Amazon
Amazon, a colossal company, has established market leadership in its e-commerce and cloud computing divisions. However, its AI division has yet to make a significant impact. This could be about to change, as Amazon's AI division holds immense potential for growth.
NASDAQ: AMZN
Key Data Points
Its Alexa-enabled smart speakers are the most popular brand on the market. However, turning these devices into a profitable venture has proven to be a challenging task for the company.
Image source: Statista.
According to a recent report from Reuters, Amazon's management is now intensely focused on achieving profitability for its AI division. The company is considering potential solutions, such as a $5 or $10 monthly subscription to access-enhanced Alexa AI, to reach this goal.
Amazon's AI division is not the only avenue for the company to tap into the AI boom. The massive Amazon Web Services (AWS) division, with its extensive network of data centers and advanced high-performance computing clusters, is well positioned to benefit from the generative AI surge. Furthermore, advances in AI could lead to increased e-commerce and advertising revenue for Amazon, as marketers and vendors leverage new AI techniques to drive sales.
There are multiple pathways to AI success. While its smart devices division has struggled to turn a profit, new plans are being hatched that may achieve that goal. Meanwhile, the company's other divisions, including its lucrative AWS and advertising segments, stand to benefit as the AI revolution rolls on.
