Imagine not fearing the disruption caused by artificial intelligence (AI) and instead getting richer from the game-changing innovations that technology creates. It’s not just for tech geeks or billionaire hedge fund managers. You, too, can make a fortune by investing in future AI titans.
But you should choose your investment wisely.
To help you in your search for these fortune-makers, read on to learn more about two pioneering companies with some of the most advanced AI in the world today.
AI Stock to Buy #1: Palo Alto Networks
Artificial intelligence will be built in the cloud. Palo Alto Networks (NASDAQ: PANW) It helps companies defend their most critical cloud networks. The cybersecurity leader is using artificial intelligence to bolster its clients’ defenses at a time when the cost of cyber hacking is exploding and preventing breaches is even more critical.
Failure to protect valuable trade secrets or sensitive customer data can result in devastating financial losses, regulatory fines and reputational damage. You just have to take a quick look at the cost estimates CrowdStrikecut off earlier this year to understand the extent of potential casualties. System failures at a rival cybersecurity provider are expected to cost its customers $5.4 billion.
With its competitor pivoting, Palo Alto’s position at the top of the cyber defense industry should be more secure. CrowdStrike’s woes will likely contribute to Palo Alto’s gains, too. Cloud Guardian is growing at an impressive clip. Palo Alto’s annual recurring revenue for its next-generation security offerings rose 43 percent from a year earlier to $4.2 billion in the quarter ended July 31.
Palo Alto’s platform-based approach is clearly resonating with customers. With next-generation firewalls, advanced threat prevention tools, and a suite of cybersecurity ancillary solutions, Palo Alto offers a simpler, more integrated offering than alternatives that seek to combine hosting from single-service providers. In this way, it can reduce the complexity of its customers’ security systems and shorten the incident response time.
Palo Alto’s scale helps widen its competitive moat. Cloud Guardian collects massive amounts of data from its more than 80,000 enterprise customers, enabling its machine learning technology to get smarter all the time. And when the AI-powered platform detects a new threat, it quickly updates its safeguards to protect its customers from the threat.
These benefits will allow Palo Alto to capture a larger share of the rapidly expanding cybersecurity market, which is expected to reach more than $500 billion by 2030, according to Grandview Research. Invest in Palo Alto stock today and you could reap big profits with this leading AI-powered cloud defender.
AI Stock to Buy #2: Palantir Technologies
Like Palo Alto Networks, Palantir Technologies (NYSE: PLTR) It is becoming a valuable AI partner for a growing number of businesses and government agencies. The analytics specialist helps its clients get the most out of their valuable information faster than ever before.
Palantir’s award-winning machine learning technology can identify patterns from a wide variety of data sources. Its software enables real-time operational decisions by integrating artificial intelligence into its customers’ daily workflows.
Palantir’s AI-based solutions are of interest to the US military and its allies. The Department of Defense awarded Palantir a $480 million contract to provide its AI-based decision-making tools to battlefield commanders and senior staff. Meanwhile, the Ukrainian government is using Palantir software to accelerate its demining efforts.
Companies are also flocking to Palantir’s new Artificial Intelligence Platform (AIP). Energy management giant Eaton It uses AIP to enhance its data management and resource planning capabilities. Palantir also helps restaurant chains Wendy Digitize your supply chain and accelerate the adoption of AI-based automation.
In addition, Palantir recently expanded its partnership with it Microsoft. The two technology leaders are working together to bring a suite of advanced AI applications and analytics capabilities to US defense and intelligence agencies.
These deals accelerate Palantir’s expansion. Its adjusted operating income jumped 37% year-over-year to $254 million in the second quarter, driven by a 27% jump in revenue to $678 million. This represents significant acceleration from the 21% revenue growth the AI leader delivered in the first quarter. An 83 percent increase in US business customers should generate more profit for Palantir and its shareholders next year.
Should you invest $1,000 in Palantir Technologies right now?
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Joe Tenbroso has no position in any of the listed stocks. The Motley Fool has positions in and recommends CrowdStrike, Microsoft, Palantir Technologies and Palo Alto Networks. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
2 Artificial Intelligence (AI) Stocks to Buy Now That Could Make You a Millionaire was originally published by The Motley Fool.