The S&P 500 has achieved remarkable returns in the past year, rising approximately 23%. Historically, the index has averaged about 10% in annual returns over several decades. Therefore, to identify stocks that can beat the market, investors must seek companies capable of sustaining high double-digit growth for an extended period. The artificial intelligence (AI) sector presents a promising avenue for finding growth stocks. According to Statista, spending on AI technology is projected to grow from $184 billion this year to $826 billion by 2030. Here are two AI stocks that have significantly outperformed the S&P 500 over the past year and are poised to continue this trend through the end of the decade. 1. **Palantir Technologies** Shares of Palantir Technologies (PLTR 1. 95%) have surged to new heights as the AI software company reported accelerating growth this year. Traditionally reliant on government contracts, Palantir is increasingly attracting corporate clients, which could lead to impressive returns over the next six years. In the second quarter, Palantir announced a substantial 27% year-over-year growth in total revenue. The company secured 10 contracts exceeding $10 million, showcasing resilience amid the challenges many software firms are facing this year due to tight enterprise budgets. Many companies are prioritizing investments in AI. After implementing Palantir's solutions, they are experiencing benefits such as accelerated task completion and improved product pricing strategies, ultimately enhancing profit margins. A key advantage for Palantir lies in its sales approach, involving software engineers who assist customers in setting up and optimizing the software. This strategy greatly enhances the potential for higher sales. Palantir's high-margin software operations are set to deliver impressive returns for shareholders in the years ahead. Analysts on Wall Street forecast an 85% increase in Palantir's annualized earnings over the next five years, suggesting a significant uplift in the company's margins.

While fluctuations are expected, investors may anticipate that Palantir stock will at least double by 2030, outperforming market averages. 2. **Nvidia** Nvidia (NVDA -0. 03%) is estimated to hold at least 70% of the AI chip market. The company has a long-standing dominance in the graphics processing unit (GPU) market, which provides the necessary processing power for AI training. Nvidia's GPU leadership has resulted in exceptional returns for shareholders as firms increasingly invest in expanding their data centers. Nvidia's data center revenue more than doubled year-over-year last quarter, reaching $26 billion. With growing opportunities beyond the U. S. market, the company is well-positioned to maintain its momentum into the coming year. As it prepares to unveil the next-generation Blackwell AI computing platform, management remains focused on supplying AI infrastructure globally. Countries are eager to utilize generative AI tools tailored to their own languages and cultures, turning to Nvidia for the infrastructure needed to make this vision a reality. For instance, Japan's National Institute of Advanced Industrial Science and Technology employs thousands of Nvidia H200 GPUs for its AI Bridging Cloud Infrastructure 3. 0 supercomputer. As Nvidia capitalizes on the enterprise demand surge, the potential for sovereign AI infrastructure could represent the next major wave of growth for the GPU giant. Management anticipates that its sovereign AI business will exceed $10 billion this year.