Palantir Technologies and C3.ai are two artificial intelligence (AI) software companies with great potential for generating significant returns for investors in the rapidly growing AI market. Palantir’s software platforms, including Gotham, Foundry, Apollo, and the Palantir Artificial Intelligence Platform (AIP), allow organizations to analyze and manage their data to make better decisions. The company’s software has been notably used by the U.S. government for counterterrorism investigations.
Palantir’s business model generates revenue from subscriptions, maintenance services, and licenses. Despite a relatively weak software demand environment, Palantir’s revenue growth has accelerated over the past year, increasing by 21% year over year in the first quarter. The company’s total addressable market is estimated at $119 billion, far greater than its current annual revenue of $2.3 billion.
C3.ai, another subscription-based AI software company, began by providing energy utility software and has since expanded to serve businesses across several industries, including the U.S. military. The company’s revenue grew by 20% year over year in the most recent quarter. C3.ai benefits significantly from partnerships with cloud service providers such as Amazon Web Services, Google Cloud, and Azure.
Despite a slight decrease in stock value this year, C3.ai reported positive free cash flow of nearly $19 million last quarter. The company’s momentum through its cloud partner network is promising, with customer inquiries doubling year over year last quarter. If C3.ai continues to secure more deals and improve its margins, the stock could see significant growth in the coming years.
CrowdStrike and Super Micro Computer are two AI stocks that have recently tumbled despite earlier record highs.
High-potential stocks in AI
CrowdStrike’s losses were precipitated by a faulty software patch, while Super Micro Computer’s losses accumulated following mixed financial results.
However, certain Wall Street analysts view the stocks as significantly oversold and expect shares to rebound sharply. CrowdStrike sells cybersecurity software products through a single AI platform and is known for its leadership in modern endpoint security. The company captured 21% of the market share in modern endpoint security software last year.
CrowdStrike’s data advantage makes its AI models particularly effective in detecting cyber threats. Super Micro Computer designs and manufactures high-performance computing platforms for data centers, optimized for use cases such as data analytics and artificial intelligence. The company sources chips from various suppliers and has established itself as a leader in the AI server market due to its internal design competencies and modular approach to product development.
While certain Wall Street analysts are optimistic about the future of both CrowdStrike and Super Micro, investors should consider the inherent risks and volatility. Both companies have solid growth potential, driven by their leadership in artificial intelligence and cybersecurity solutions. AI has emerged as one of the most transformative technologies of our time, with applications spanning nearly every industry imaginable.
Companies like Adobe, Advanced Micro Devices (AMD), Alphabet, Amazon, Apple, IBM, Microsoft, Nvidia, Palantir Technologies, and C3.ai are among the 25 best AI stocks to consider for investors looking to capitalize on the growth potential of AI-driven companies. The AI market presents a diverse range of investment opportunities across multiple sectors and industries. The best approach to gaining exposure to this megatrend might be to own a basket of AI-centric stocks that cover top players like Nvidia and Apple, as well as up-and-comers like Serve Robotics.
Investors should consider these diversified options to benefit from the promising future of AI technology.
