Artificial intelligence (AI) is an exciting investment trend right now. Generative AI is predicted to become a multi-trillion dollar market within the next decade, creating many investment opportunities along the way.
Some of these investment opportunities are fairly obvious, while others are already moving parabolically. Nvidia, It has been pushed into the trillion dollar club by the AI boom. But there are also less obvious uses of AI technology. Here are two that I’m stocking my portfolio with.
Advances in AI could boost stocks in this metaverse
Popular video game platforms roblox (NYSE: RBLX) Probably the closest thing to a true Metaverse experience that exists today. The platform has more than 71 million daily active users who sign up for the platform, create avatars, and explore available experiences, and millions of developers create their own content ( and monetize).
Roblox takes a cut from all virtual purchases and has other revenue sources such as advertising. In 2023, Roblox generated his $2.8 billion in revenue.
The platform continues to grow rapidly, with revenue increasing 30% year-over-year in the fourth quarter. Management has a long-term goal of growing the number of users to his 1 billion, and has done a great job of growing internationally and making its platform available in a variety of ways. For example, Roblox recently Sony PlayStation in the fourth quarter. As more immersive devices become widely adopted; meta platform and appleRoblox could be a big winner.
Roblox isn’t yet a profitable business, but it’s clearly heading in that direction. If the company can continue to scale rapidly while achieving profitability, it could be a big winner for investors.
AI bank stocks
disruptor of banking SoFi (NASDAQ:SOFI) aims to leverage technology to improve the banking experience for customers and replace their relationship with brick-and-mortar financial institutions. That includes incorporating AI technology to give banks an edge.
For example, SoFi integrated the Galileo fintech platform’s conversational AI engine into its banking app to increase satisfaction, reduce response times, and make business more efficient. We also use AI to detect fraud, automate investment portfolios, and approve loans instantly.
SoFi’s growth has been impressive and shows no signs of slowing down. The company now has 7.5 million members, a 44% increase since the end of 2022, and the bank (which just received its banking charter in early 2022) has already grown to $18.9 billion in deposits. Additionally, the bank recently achieved its first generally accepted accounting principles (GAAP) surplus and is expected to continue reporting profits.
As SoFi’s banking business grows, natural marketing funnels will form for things like loan products and brokerage accounts, and efficiencies should naturally improve over time. If SoFi can continue its rapid growth while improving profitability, it could be a big AI winner for investors.
invest for the long term
Granted, I think both of these stocks could go parabolic under the right circumstances, but I hold both in my portfolio because I think they make good long-term investments. . It’s not because I think it’s going to double or triple anytime soon. . And even if both do well, it’s wise to expect significant volatility in the middle of the pair.
Should you invest $1,000 in Roblox right now?
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Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool’s board of directors. Matt Frankel holds positions at Roblox and his SoFi Technologies. The Motley Fool has positions in and recommends Apple, Meta Platforms, Nvidia, and Roblox. The Motley Fool has a disclosure policy.
“2 Artificial Intelligence (AI) Stocks That Could Go Parabolic” was originally published by The Motley Fool.
