Investors who bought just the right artificial intelligence (AI) stocks a few years ago and held onto them likely have seen their wealth grow significantly. That's because this investing theme has driven the S&P 500 higher as investors rushed to bet on the next game-changing development in the world of technology.
AI has already offered us a taste of its potential as companies have started to deploy it in many areas -- from organizing operations in a fulfillment center to supercharging customer service. The technology also may become an integral player in major discoveries down the road. For example, AI might help researchers develop better drugs -- and faster.
Since AI stocks have skyrocketed in recent years, with certain players climbing in the quadruple digits in a short period of time, you may be wondering if there are any buying opportunities left in the AI space. I have some good news for you: There are, and many may deliver impressive returns as this AI boom continues. A look at market forecasts, suggesting the AI market will advance into the trillions of dollars in a few years, shows we're in the early chapters of this story.
Considering this, check out these 2 AI players that could make you a millionaire.
Image source: The Motley Fool.
1. Nvidia
Nvidia (NVDA 1.48%) stock already has soared more than 1,100% over the past three years, but this stock's exciting moves may be far from over. This leaves Nvidia trading for about 40x forward earnings estimates, which isn't the company's highest valuation and is a reasonable level considering the tech giant's prospects in AI.
NVDA PE Ratio (Forward) data by YCharts
Nvidia is the leading company in the AI chip market, as it sells the world's most powerful graphics processing units (GPUs). These chips fuel crucial AI tasks and are a key component in the offerings of major cloud providers, from Amazon's Amazon Web Services to Alphabet's Google Cloud. With each new release, these and other customers have rushed to get in on the product, resulting in soaring demand -- and enormous revenue growth for Nvidia.
NASDAQ: NVDA
Key Data Points
What makes me extremely optimistic about the coming quarters is the fact that AI infrastructure spending is roaring higher -- Nvidia predicts it may reach $4 trillion by 2030 -- and this involves great investment in GPUs. Nvidia, thanks to the top performance of its chips, is sure to benefit. And Nvidia's commitment to annual innovation should keep it a step, or many steps, ahead of rivals.
All of this means that, over time, Nvidia, in a portfolio with other quality stocks, could shepherd you along the path to millions.
2. Meta Platforms
You may know Meta Platforms (META 2.42%) best for its ownership of the world's most popular social media apps, from Facebook to Instagram. Advertising revenue across these apps drives Meta's overall revenue, helping it to become a profitable, well-established company that even has what it takes to pay a dividend. The company launched dividend payments about two years ago, showing that it has the financial strength to reward investors and invest in growth.
But over the past few years, Meta hasn't only been a social media company. It's also started paving a path to leadership in the world of AI. The company has poured investment into the technology, even building its own large language model (LLM), called Llama, and using it to power various innovations such as Meta's virtual assistant.
NASDAQ: META
Key Data Points
Through this investment, Meta has a number of goals, but one that clearly could lead to revenue growth is this one: Meta aims to revolutionize the advertising process, aiming for gains in efficiency and better results for advertisers. This could keep advertisers coming back and spending more on Meta.
Now is a fantastic time to get in on this exciting story as Meta trades for only 21x forward earnings estimates, making it the cheapest of the Magnificent Seven tech stocks.
So, if you buy Meta and hold this top tech stock for the long term, as part of a diversified portfolio of stocks, it could power you along the path to millions.
