A historic bull run in the artificial intelligence (AI) market has made many millionaires since the start of 2023, with the Nasdaq Composite and S&P 500 spiking 72% and 46%, respectively. Companies across tech have profited from the rally, making Wall Street bullish about new AI software and hardware offerings.
But despite recent growth, developers have barely scratched the surface of what's possible with the technology. Consumer tech brands have only just begun enhancing their products with AI. Meanwhile, chipmakers are gradually increasing the power of their products, allowing developers to create more responsive and intelligent software.
As a result, it's not too late to invest in AI and profit from its long-term development as the technology is applied to smartphones, self-driving cars, productivity platforms, advertising, e-commerce sites, cloud platforms, and much more. So, here are two potential millionaire-maker artificial intelligence stocks to consider in July.
1. Intel
Shares of Intel (INTC 4.88%) have risen 131,000% since the company went public in 1971, making many people rich over that time.
But years of dominance in the chip market saw the company grow complacent, leaving it vulnerable to more innovative competition. As a result, the shares have tumbled 28% over the last five years, alongside lost market share and declines in earnings.
Recent changes in its business model suggest Intel will be a millionaire maker again as it expands full force into AI. The company is attacking the sector from two angles: design and manufacturing.
Over the past year, Intel has unveiled a series of AI-capable chips, including its Xeon 6 processors and Gaudi 2 and 3 accelerators. These were designed to compete with similar products from Nvidia and AMD and are priced significantly lower than their rivals' chips.
Intel has also announced its upcoming Lunar Lake processors, developed for AI PCs, which will offer the company exposure to a high-growth sector of the industry.
NASDAQ: INTC
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But the most promising part of Intel's AI push so far is its priority on taking back the top spot in manufacturing. The company is working to steal share from market leader Taiwan Semiconductor Manufacturing by building chip plants throughout the U.S., a move that has boosted Intel's stock 5% since July 12.
Rising tensions between the U.S. and China could threaten access to TSMC's services and make Intel's domestic factories a vital resource as chip demand continues to soar in the AI market. The company has begun construction on its Ohio factory, with plans to make it the largest AI chip fab in the world. Intep has received $8.5 billion in grants from the U.S. government as part of President Biden's CHIPS Act, as well as $11 billion in loans.
Intel is playing the long game, steadily diversifying its position in AI to potentially see major gains over the next decade. Its price-to-sales (P/S) ratio of just under 3 is well below the same metric for Nvidia, AMD, and TSMC, making it a bargain by comparison -- and a millionaire-maker stock worth considering right now.
2. Amazon
Amazon (AMZN 1.66%) has been a leading beneficiary of the recent AI rally, with its shares up 119% since the start of 2023. The company's dominating cloud platform, Amazon Web Services (AWS), has earned it a powerful role in the industry, becoming the go-to for many businesses seeking ways to integrate AI into their daily workflows.
As a result, the company has spent billions in recent months to expand AWS' capabilities. If you google "Amazon invests in data centers," you'll find a long list of reports from the last two years illustrating the company's spending spree. It's building or expanding AWS data centers in Indiana, Mississippi, Virginia, Saudi Arabia, Malaysia, Taiwan, and India.
Meanwhile, the company is gradually expanding AWS' library of AI solutions and has announced a venture into chip design.
NASDAQ: AMZN
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Besides cloud computing, Amazon's diverse business model gives it several other opportunities to boost earnings with the generative technology. For instance, in February, the company unveiled Rufus, an AI shipping assistant created for shoppers on its e-commerce site. According to Amazon, Rufus can "answer customer questions on shopping needs, products, and comparisons, make recommendations based on this context, and facilitate product discovery."
Over the past year, Amazon's free cash flow and quarterly operating income have climbed 170% and 37%, respectively, strengthening its ability to keep reinvesting in its business. With a P/S multiple of about 3, well below the same metric for cloud rivals Microsoft and Alphabet, Amazon is an AI stock to buy this July.
