While the artificial intelligence (AI) enthusiasm remains robust, presenting numerous possibilities for growth stocks to generate remarkable returns, two specific AI-centric stocks could potentially exceed the performance of the S&P 500 index until the decade concludes.
In fact, the sector for AI technology, which encompasses a diverse array of applications, is expected to expand according to information from Finbold; the projected market value of AI is $207.9 billion, which is forecasted to soar by 788.64% to reach approximately $1.87 trillion by 2030. The market value is anticipated to surpass the $1 trillion mark for the first time in 2028, estimated at $1.06 trillion.
Consequently, Finbold has identified two AI stocks that could gain significantly from this expansion.
#1 Palantir (PLTR)
In particular, the initial stock in focus is Palantir (NYSE: PLTR), which has recently been added to the S&P 500 index itself, and which Bank of America (NYSE: BAC) analyst Mariana Pérez Mora indicated is experiencing an analytical error reminiscent of the one from 1980 that predicted only 900,000 users for the cell phone market by 2000.
“We believe Palantir’s (PLTR) capabilities, technology, and future path are facing a similar fundamental misinterpretation. (…) The forthcoming S&P 500 inclusion offers a milestone opportunity for institutional investors to reassess what they believe to be true about PLTR.”
With this perspective, Pérez Mora, who has monitored PLTR stocks since their price was merely $6 per share, has raised her 12-month stock price forecast for Palantir from $30 to a potential $50, marking it as the highest forecast given by Wall Street analysis in the past three months.
At the time of this report, the value of PLTR stock was $36.10, reflecting a 0.64% decrease on the day. It has also appreciated by 4.98% during the week, contributing to an 11.06% increase in the last month and a remarkable 117.71% rise year-to-date (YTD), as per data from September 17.
#2 Advanced Micro Devices (AMD)
Meanwhile, the second AI stock that could potentially outperform the S&P 500 by 2030 is Advanced Micro Devices (NASDAQ: AMD), a firm that is in direct competition with Nvidia (NASDAQ: NVDA) in the GPU sector and which has unveiled new products to expedite its AI strategy.
Additionally, Stifel technology analyst Ruben Roy noted that AMD’s merger and acquisition (M&A) endeavors in the past six to eight months have involved software-targeted acquisitions such as a $4.9 billion agreement with ZT Systems, ranking AMD’s strategy just behind Nvidia’s.
“I wouldn’t claim that AMD is catching up to Nvidia overnight, but clearly, from these acquisitions, it appears the company’s strategy is aimed at positioning itself as a number two contender to what Nvidia has established.”
It is also notable that Citi (NYSE: C) analysts previously emphasized that the ZT Systems acquisition would enable AMD to more effectively compete with Nvidia “in the data center GPU market through enhanced system expertise and quicker hyper scaler deployment intervals,” reaffirming their ‘buy’ rating along with a price target of $210.
Currently, AMD stock is priced at $151.90, reflecting a 0.33% drop in the last 24 hours. It has increased by 6.03% over the week, decreased 2.20% in the past month, and risen 9.61% since the start of this year.
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