There is no shortage of artificial intelligence (AI) stocks these days. But if you're looking for AI stocks that have millionaire-making potential, you sometimes need to make swing-for-the-fences bets.
Here are three AI stocks that have huge potential upside that also carry some risks.
1. Palantir
NASDAQ: PLTR
Key Data Points
Palantir Technologies (PLTR 1.86%) isn't just another company applying AI to improve a current product. Instead, it's created a solution that lets customers use AI to help solve real-world problems. That's a big difference, and it's what makes the stock a potential millionaire maker.
Its Artificial Intelligence Platform (AIP) can take data from pretty much anywhere, map it to real-world processes, and then apply AI to help come up with real solutions. AIP isn't something just being piloted; it's already being actively used in a variety of industries. And the strength of AIP can be seen in Palantir's results.
The company's revenue has now accelerated for seven straight quarters, and its U.S. commercial growth is exploding. In Q1, its commercial revenue in the U.S. jumped 71%, and the total future deal value more than doubled. Its government sector is still strong -- up 45% in Q1 -- and Palantir just signed a big deal with NATO, which opens the door to more international defense contracts.
What really stands out, though, is the scope of what AIP can do. From hospitals tracking sepsis, to defense systems managing battlefield intelligence, to food companies optimizing supply chains, Palantir's technology is being used by a broad range of industries to help solve very different issues. Its platform has an enormous range of use cases, and it's still early in penetrating many of them. At the same time, Europe is largely untapped, and the company just rolled out AI agents, which take it from recommending actions to actually doing them. That could be a game-changer.
The stock has run and its valuation is high, but the opportunity here is massive. If Palantir becomes the operating system for AI across industries, today's price won't look expensive in hindsight.
Image source: Getty Images.
2. Advanced Micro Devices
NASDAQ: AMD
Key Data Points
Nvidia has become the face of AI infrastructure, but Advanced Micro Devices (AMD +3.50%) might be the stock with huge potential upside at this point. It's smaller, cheaper, and positioned well for where AI is going as the market starts shifting from training to inference.
Inference is the phase where AI makes deductions based on the information it's already been trained on. It's expected to become a much bigger market over time, and cost per inference and latency matter more than just brute force compute. Nvidia still owns training thanks to its superior CUDA software platform, but AMD has made strides on the inference side. Its ROCm software has improved, and its chips are starting to show up in some high-profile places.
On its Q1 earnings call, AMD said one of the largest AI model developers is now using its graphics processing units (GPUs) to handle a big chunk of its daily inference traffic. Cloud providers, meanwhile, have started using AMD's GPUs for search, recommendation, and generative AI tasks. It doesn't need to dethrone Nvidia. Just grabbing a modest share could lead to huge growth given how small AMD's data center GPU business still is comparatively.
A big part of this story that is underestimated is UALink, an open interconnect standard being developed by a consortium of major tech companies to compete with Nvidia's proprietary NVLink. If UALink were to become the standard, companies would now be able to mix and match AI chips when building out their AI clusters. This should open the door for AMD to take more share in the GPU space.
If that happens, AMD has a huge potential opportunity ahead and a lot of room to run. However, Nvidia isn't going down without a fight, and more companies have been turning toward custom AI chips, which is a risk.
3. SoundHound AI
NASDAQ: SOUN
Key Data Points
SoundHound AI (SOUN 1.76%) is a small company with big ambitions. It started out as an AI voice company and is now trying to become a leader in autonomous voice agents. This is a high-risk, high-reward stock, but if it pulls off what it's building, the payoff could be huge.
SoundHound's AI voice platform uses advanced speech recognition technology, combining "speech-to-meaning" and "deep meaning understanding" to interpret someone's intent in real time. Its technology already powers voice assistants in cars from the likes of Hyundai and Stellantis. It's also being used in restaurants, with drive-thru, phone, and kiosk ordering all using its voice tech. But the big shift in its strategy came with its acquisition of Amelia.
Amelia brought with it conversational intelligence technology and customers within the healthcare, insurance, and finance verticals. Now, SoundHound has combined Amelia with its voice platform to create Amelia 7.0 -- a voice-first platform with AI agents that can understand intent, reason through conversations, and complete complex tasks on its own.
This isn't a glorified AI chatbot. It integrates with back-end systems like ERPs, CRMs, and insurance platforms. As organizations look toward AI to save costs and potentially create a digital workforce, SoundHound is in a strong position in an evolving market.
Its combination of voice technology with AI agents could be a real game-changer. The AI agent space is a bit crowded, but if SoundHound becomes a leader in agentic AI, its stock could become a huge winner.
