Imagine not being afraid of the disruption caused by artificial intelligence (AI) and instead growing richer from the breakthrough innovations it creates. This isn’t just for techies or billionaire hedge fund managers. You too could build massive wealth by investing in the AI-powered titans of tomorrow.
But you must choose your investments wisely.
To help you in your search for these fortune makers, read about two groundbreaking companies with some of the most advanced AI technologies in the world.
AI Stocks to Buy #1: Palo Alto Networks
AI is being built in the cloud. Palo Alto Networks (NASDAQ: PANW) helps companies defend their most critical cloud networks. The cybersecurity leader uses AI to strengthen its customers’ defenses at a time when the cost of cyber hacks is exploding and preventing breaches is only becoming more important.
Failure to protect valuable trade secrets or sensitive customer data can result in devastating financial losses, regulatory fines and reputational damage. All it takes is a quick look at the cost estimates for CrowdStrike‘s outage earlier this year to understand the extent of potential losses. The rival cybersecurity provider’s system outages are expected to cost its customers as much as $5.4 billion.
With its rival faltering, Palo Alto’s position at the top of the cyber defense industry should be further cemented. CrowdStrike’s troubles will likely also hurt Palo Alto’s bottom line. The cloud guardian is already growing at an impressive pace. Palo Alto’s annual recurring revenue for its next-generation security offerings rose 43% year over year to $4.2 billion in the quarter ended July 31.
Palo Alto’s platform-based approach is clearly resonating with customers. With its next-generation firewalls, advanced threat prevention tools, and a range of complementary cybersecurity solutions, Palo Alto offers a simpler, more seamlessly integrated offering than alternatives that seek to bundle a multitude of single-service providers. In this way, it can reduce the complexity of its customers’ security systems and accelerate their incident response times.
Palo Alto’s scale helps it become more competitive. Its cloud sentinel collects a huge amount of data from its 80,000+ enterprise customers, making its machine learning technology constantly more intelligent. And when its AI-driven platform identifies a new threat, it quickly updates its protections to protect its customers from the threat.
These advantages position Palo Alto to claim a larger share of a rapidly growing cybersecurity market expected to exceed $500 billion by 2030, according to Grand View Research. Invest in Palo Alto stock today and you could profit big from this leading AI-powered cloud defender.
AI Stocks to Buy #2: Palantir Technologies
Like Palo Alto Networks, Palantir Technologies (NYSE: PLTR) becomes an invaluable AI partner for a growing number of companies and government organizations. The analytics specialist helps its customers gain valuable insights from their data, faster than ever before.
Palantir’s award-winning machine learning technology can identify patterns from a wide range of data sources. The software enables real-time operational decisions by integrating AI into its customers’ daily workflows.
Palantir’s AI-powered solutions are valued by the U.S. military and its allies. The Department of Defense awarded Palantir a $480 million contract to bring its AI-driven decision-making tools to battlefield commanders and senior staff. The Ukrainian government, meanwhile, is using Palantir’s software to accelerate its mine clearance efforts.
Companies are also flocking to Palantir’s new Artificial Intelligence Platform (AIP). Power management giant To eat uses AIP to enhance its data management and resource planning capabilities. Palantir also helps restaurant chains Wendy’s digitizing the supply chain and accelerating the adoption of AI-driven automation.
Additionally, Palantir recently announced its partnership with MicrosoftThe two technology leaders are partnering to deliver a range of advanced AI applications and analytical capabilities to U.S. defense and intelligence agencies.
The deals are accelerating Palantir’s expansion. Adjusted operating income rose 37% year over year to $254 million in the second quarter, driven by a 27% increase in revenue to $678 million. That marked a significant acceleration from the 21% revenue growth the AI leader posted in the first quarter. An 83% increase in U.S. commercial customers should deliver more profits for Palantir and its shareholders in the year ahead.
Should You Invest $1,000 in Palantir Technologies Now?
Before you buy shares in Palantir Technologies, you should consider the following:
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike, Microsoft, Palantir Technologies, and Palo Alto Networks. The Motley Fool recommends the following options: long Jan 2026 $395 calls on Microsoft and short Jan 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
2 Artificial Intelligence (AI) Stocks You Can Buy Now That Could Make You a Millionaire was originally published by The Motley Fool
