The adoption of artificial intelligence (AI) has significantly boosted many companies' stock prices, driven by AI's potential to greatly impact the global economy. PwC suggests that generative AI could add $15. 7 trillion to the global economy by 2030 due to productivity and product enhancements improving consumer demand. Consequently, companies are increasingly incorporating AI into their offerings, benefiting from a positive business impact that’s likely to continue as AI grows. Investing in AI stocks could be a smart long-term strategy due to compounding benefits and disruptive potential. **Palantir Technologies** Palantir Technologies (PLTR) has seen remarkable growth since going public in 2020, with its stock rising 544%. A $1, 000 investment would now be worth over $6, 400. Palantir has benefited from high AI demand, with its third-quarter 2024 revenue growing 30% to $726 million and adjusted earnings increasing 43%. The demand for its AI Platform (AIP) has led to a 39% increase in customers and more high-value deals, enriching its revenue pipeline. With a $4. 5 billion deal value and increasing customer spending, reflected in a net-dollar retention rate of 118%, Palantir's financial health is robust.

The AI software market is projected to grow significantly, suggesting continued potential for Palantir. **Arm Holdings** Arm Holdings (ARM) also experienced significant growth after its 2022 IPO, doubling its stock value by 102%. Arm licenses its chip designs, earning fees and royalties, and dominates chip supply in several markets, with 99% of smartphone processors using its designs. Despite slow smartphone market growth, Arm’s smartphone royalty revenue increased 40%, driven by its higher-royalty Armv9 architecture. This architecture, designed for AI workloads, is used in Apple’s AI-capable iPhones. With AI smartphone demand projected to grow rapidly, Arm is well-positioned to benefit further. In the cloud market, Arm’s architecture is used in Nvidia’s AI CPUs. Analysts forecast strong earnings growth for Arm, backed by its crucial role in the chip market and its strong business model. Both Palantir and Arm Holdings are positioned to benefit from the expanding AI sector, making them appealing options for investors aiming to build a million-dollar portfolio.