These Are My Top Artificial Intelligence (AI) Stocks to Buy Right Now

Advanced Micro Devices (AMD) and Palantir Technologies are well-positioned to capitalize on the growing AI market due to several key reasons:

1. AMD:

   • AI Chip Market Growth: The AI chip market is expected to reach $1.11 trillion by 2032, presenting a massive growth opportunity for AMD.
   • Increasing Data Center Revenue: AMD's data center revenue, driven by demand for AI graphics cards, increased 80% year over year in Q1 2024.
   • New AI Chip: AMD's new MI325X AI chip is claimed to be 30% faster than Nvidia's H200 processor, and the company plans to launch a new AI chip every year.
   • Market Share Growth: Analysts predict Nvidia's market share in AI chips could slip, providing an opportunity for AMD to increase its share1.

2. Palantir Technologies:

   • Generative AI Software Market: The market for generative AI software is estimated to be worth $52 billion in 2028, with an annual growth rate of 58%.
   • Increasing RPO: Palantir's remaining performance obligations (RPO) increased 38% year over year in Q1 2024, indicating strong long-term growth.
   • Expanding Customer Base: The company's commercial-customer count grew 53% year over year in Q1 2024, and it secured AI-related government contracts.
   • Earnings Growth: Palantir's earnings are expected to increase at an annual rate of 85% for the next five years.

AI spending is expected to increase significantly by 2030 compared to last year's figures. According to the information provided, AI spending is projected to jump from an estimated $135 billion in 2023 to a whopping $827 billion in 2030. This represents a substantial increase of $692 billion over the course of seven years.