Top AI Stocks: AMD & Palantir for Future Growth

Advancements in artificial intelligence (AI) are anticipated to transform significant portions of the global economy. Astute investors who strategically align themselves with this major trend stand to make substantial profits. To assist you in capitalizing on the impending AI growth, here are two prime tech stocks poised to yield impressive returns for their shareholders in the years to come. Don't Miss Out on the Morning Scoop!Breakfast News offers a concise, smart, and complimentary daily newsletter. Sign Up For Free » Top AI Stock to Consider: Advanced Micro Devices Nvidia (NASDAQ: NVDA) is often regarded as the initial leader in the AI chip market, designing state-of-the-art semiconductors for top AI applications. However, companies prefer not to rely solely on a single supplier for essential technology. Thus, there’s a growing demand for more competition in the AI chip sector, a demand that Advanced Micro Devices (NASDAQ: AMD) aims to satisfy. The stakes are considerable. AMD CEO Lisa Su believes that sales of chips designed to accelerate AI workloads will increase by over 60% annually, reaching an extraordinary $500 billion by 2028.

AMD is entering this profitable market, projecting its GPU sales for AI data centers to exceed $5 billion in 2024. AMD's AI chip sales are thriving, with data center revenue surging 122% year over year to $3. 5 billion in the third quarter, suggesting even greater achievements to come. Leading tech companies are keen to integrate AMD's chips into their rapidly growing cloud computing systems. Microsoft is utilizing AMD's MI300X accelerators for its popular AI "copilot" assistants, while Meta Platforms employs these chips for its high-performance Llama 405B AI model. AMD's upcoming MI325X accelerators are expected to offer significant performance improvements and are likely to be well-received by chip consumers. Another growth area for AMD lies in the expanding market for AI-enabled personal computers (PCs). Manufacturers like HP and Lenovo are preparing to release more laptops with AMD's latest Ryzen AI Pro 300 Series processors. AMD is confident these high-performance AI chips will capture more market share, particularly as businesses upgrade devices following the end of Microsoft’s Windows 10 PC technical support in 2025. AMD is already experiencing growth in its client segment, which includes its PC operations, with a 29% increase in sales to $1. 9 billion in the third quarter. Another AI Stock to Watch: Palantir Technologies