Rather than fearing the disruption that artificial intelligence (AI) will bring, imagine making a fortune from the game-changing innovations that technology will create. This isn’t just for tech geeks and billionaire hedge fund managers: you too can make billions by investing in the AI-powered giants of tomorrow.
But investments need to be chosen carefully.
To help you discover these wealth-building companies, read on to learn more about two pioneering companies with some of the most cutting-edge AI in the world today.
#1 AI Stock to Buy: Palo Alto Networks
AI is built on the cloud. Palo Alto Networks (Nasdaq:PANW) helps businesses defend their most critical cloud networks. The cybersecurity leader is using AI to bolster its customers’ defenses at a time when the cost of cyber hacks is skyrocketing and preventing breaches is becoming more important.
Failure to protect valuable trade secrets and sensitive customer data can lead to devastating financial losses, regulatory penalties, and reputational damage. A quick look at cost estimates for CrowdStrike’s outage earlier this year shows the scale of the potential losses: a rival cybersecurity provider’s failure was expected to cost customers a staggering $5.4 billion.
Palo Alto’s position in the cyber defense industry should become stronger as competitors are disrupted. CrowdStrike’s troubles will also boost Palo Alto’s profits. The cloud guardian is already experiencing phenomenal growth. Palo Alto’s annual recurring revenue from next-generation security products jumped 43% year over year to $4.2 billion in the quarter that ended July 31.
Palo Alto’s platform-based approach is clearly resonating with customers. With its next-generation firewall, advanced threat prevention tools, and a suite of complementary cybersecurity solutions, Palo Alto offers a simpler, more seamlessly integrated service than other solutions that try to consolidate a multitude of single-service providers. In this way, it helps reduce the complexity of its clients’ security systems and improves incident response times.
Palo Alto’s scale helps extend its competitive advantage: Cloud Sentinel collects massive amounts of data from its more than 80,000 enterprise customers to perpetually improve its machine learning technology, and as its AI-driven platform identifies new dangers, it instantly updates safeguards to protect customers from threats.
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These advantages position Palo Alto to grab a larger share of the rapidly expanding cybersecurity market, which is expected to exceed $500 billion by 2030, according to Grand View Research. Investing in Palo Alto stock today can help you reap big rewards with this leader in AI-powered cloud defense.
#2 AI Stock to Buy: Palantir Technologies
Like Palo Alto Networks, Palantir Technologies (NYSE: PLTR) is becoming a valuable AI partner to a growing number of businesses and government agencies. The analytics specialist helps customers derive valuable insights from their data, faster than ever before.
Palantir’s award-winning machine learning technology can identify patterns from disparate data sources, and its software integrates AI into its customers’ daily workflows to enable real-time operational decisions.
Palantir’s AI-powered solutions have been praised by the U.S. military and its allies: The Department of Defense awarded Palantir a contract of up to $480 million to provide AI-powered decision-making tools to battlefield commanders and senior staff, while the Ukrainian government is using Palantir’s software to accelerate mine clearance efforts.
Companies are also flocking to Palantir’s new Artificial Intelligence Platform (AIP): Power management giant Eaton is using AIP to enhance its data management and resource planning capabilities, and Palantir is also helping restaurant chain Wendy’s digitize its supply chain and accelerate the adoption of AI-driven automation.
Additionally, Palantir recently expanded its partnership with Microsoft, with the two technology leaders working together to provide U.S. defense and intelligence agencies with a suite of advanced AI applications and analytics capabilities.
These deals are fueling Palantir’s expansion. Second-quarter adjusted operating income surged 37% year over year to $254 million, driven by a 27% increase in revenue to $678 million, a sharp acceleration from the 21% revenue growth the AI leader achieved in the first quarter. An 83% increase in U.S. corporate clients should further boost profits for Palantir and its shareholders over the coming year.
Should you invest $1,000 in Palantir Technologies right now?
Before buying Palantir Technologies stock, consider the following:
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CrowdStrike, Microsoft, Palantir Technologies, and Palo Alto Networks. The Motley Fool recommends buying Microsoft’s January 2026 $395 calls and selling Microsoft’s January 2026 $405 calls. The Motley Fool has a disclosure policy.
The article 2 Artificial Intelligence (AI) Stocks You Can Buy Right Now Could Make You a Millionaire was originally published by The Motley Fool.
