JPMorgan Chase CEO Jamie Dimon is widely regarded as one of the most far-sighted business leaders. From his perch at the top of the financial services industry, Dimon can see trends developing earlier than most.
In his annual letter to shareholders published earlier this month, Dimon urged investors to prepare for the coming impact of artificial intelligence (AI).
While we don't know the full effect or the precise speed at which AI will change our business – or how it will impact society as a whole – we are fully confident that the consequences will be extraordinary and potentially as transformative as some of the most significant technological developments. inventions of the past hundreds of years: consider the printing press, the steam engine, electricity, computers and the internet.
Prudent investors will heed Dimon's warnings and begin adjusting their investment strategies to account for AI's potentially profound effects on the global economy. Here are two stocks you can buy today to position your portfolio to benefit from the coming AI revolution.
1. Palantir Technologies
The biggest winners of the AI race will be the companies that help their customers get the most out of their ever-increasing amount of data. Palantir Technologies (NYSE:PLTR) excels in this increasingly important area – and business is booming.
Palantir built its reputation as a valued partner for the U.S. intelligence community. The CIA is said to have used Palantir's tools in the search for Osama bin Laden.
Today, Palantir continues to provide critical services to the U.S. government and its allies. The U.S. military awarded Palantir a $178 million contract in March to help build next-generation sensors and intelligence-gathering stations. Palantir is also assisting Ukraine in its humanitarian demining operations and efforts to provide school-age children with safe access to in-person learning spaces.
Companies are also flocking to Palantir for a chance to leverage the enormous potential benefits of its new Artificial Intelligence Platform (AIP). By combining its proven machine learning technology with the most advanced AI models and real-time data, Palantir says it can help its customers perform certain tasks up to ten times faster – and with fewer resources.
The effects of these stunning productivity gains for its customers are only now beginning to be reflected in Palantir's financial results. The US data analytics leader's commercial revenue rose 70% year over year to $131 million in the fourth quarter, fueled by a 55% increase in customer numbers.
Yet Palantir ended 2023 with just 221 commercial customers in the US. Investors can expect this figure to continue to grow rapidly in the coming years. Palantir recently entered into a new partnership with cloud software giant Oracle. The deal should make it easier for companies to access Palantir's AI-powered solutions on Oracle's fast-growing cloud computing platform, and the two companies will work together to sell their services to each other.
2. Super microcomputer
Growing demand for AI software is driving sales of the hardware that powers the breakthrough technology. Yet while Super microcomputer'S (NASDAQ: SMCI) powerful servers and data storage systems are selling like hot cakes, the shares are currently on sale.
Supermicro (as the company is known) saw its revenue rise 103% year over year to $3.7 billion in the quarter ending December 31, 2023. Earnings growth was also strong, with net profit up 68% to $296 million. The AI hardware maker is gaining market share, partly thanks to its close ties with Nvidia. The huge demand for the semiconductor titan's AI chips is driving sales of the related computing equipment that Supermicro offers.
Still, Supermicro's share price has retreated from the highs it reached in March. Some investors were apparently miffed that Supermicro did not pre-announce its earnings results for the quarter ending March 31, as it had in some previous quarters. That caused a steep slope to sell in mid-April, and shares are now down about 30% from their 52-week high.
Still, KeyBanc analysts see Supermicro's share of the server market more than doubling over the next year as more companies move to AI-accelerated computing systems. Supermicro's sales and earnings should rise sharply as the company claims a larger share of the AI server industry, which could more than quadruple to $177 billion by 2032, according to Global Market Insights. Buy shares today and you can join this AI infrastructure leader is benefiting from its efforts to meet its customers' high-performance computing needs.
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends JPMorgan Chase, Nvidia, Oracle, and Palantir Technologies. The Motley Fool has one disclosure policy.
2 Artificial Intelligence (AI) stocks to buy now that could make you a fortune was originally published by The Motley Fool
