“Over time, it only takes a few winners to make miracles happen.”
— Warren Buffett, from 2022 berkshire hathaway letter to shareholders
One big winner could amass a huge fortune. No one knows this better than the Oracle of Omaha.
take apple, one of Buffett’s most famous investments. His $50,000 investment, made in 2007, the same year the iPhone was introduced, would have grown to $3.5 million just 17 years later. .
Are there any stocks that currently have such potential? of course. Here are three that may have what you need.
1.Microsoft
At the top of the list are microsoft (NASDAQ: MSFT).The company that made former CEOs Bill Gates and Steve Ballmer the world’s richest people is once again the largest company on the planet by market capitalization. Exceeded $3 trillion. And Microsoft has a great opportunity to generate even more wealth thanks to its many artificial intelligence (AI)-related ventures.
Let’s start with the company’s cloud services. work. It’s already a huge revenue generator for Microsoft, bringing in $25.9 billion in its most recent quarter (three months ending December 31, 2023). This makes the company the world’s second-largest cloud services vendor and runner-up. Amazon web service.
As the use of AI increases, Microsoft will benefit from an increase in cloud services. In fact, after some slowing in 2022, cloud spending appears to be reaccelerating as organizations look for ways to improve processes and create efficiencies through AI.
Additionally, Microsoft’s long-standing partnership with OpenAIthe company behind ChatGPTmakes Microsoft a major player in the race to develop the next AI breakthrough.
Finally, Microsoft’s often underrated search, news, and advertising division. is gaining market share and growing near double digits thanks to ChatGPT-powered features added last year.
At Microsoft, there are multiple paths to making a fortune in AI. Given its outstanding track record and excellent management, Microsoft could be one of the AI stocks that creates a lot of wealth in the future.
2.Cloud Strike
next cloud strike (NASDAQ: CRWD). CrowdStrike may not be close to Microsoft’s scale, but thanks to its cutting-edge AI-powered cybersecurity, it has the potential to make a lot of money in the coming years. An offering.
The company runs perhaps the best cybersecurity platform available today, protecting networks, endpoints, and data through add-on modules tailored to customer needs. Its modules are extensible and designed to increase efficiency as data inputs grow. In other words, CrowdStrike’s products get better the longer customers use them and feed the AI with more data.
Moreover, this network effect is not limited to one customer. As more organizations adopt CrowdStrike’s platform, its AI will leverage more scenarios and interactions to help the system detect and prevent unwanted activity across its protections. This is similar to how local law enforcement relies on the FBI’s 10th Most Wanted. This is a list to keep an eye out for specific people you’ve never encountered yourself.
Financially, CrowdStrike is growing steadily. For the most recent quarter (three months ending October 31, 2023), the company reported revenue of $786 million, up 35% year over year. Additionally, annual recurring revenue (ARR), a closely watched metric for companies selling subscription-based products, increased to $3.15 billion, adding $223 million in net new ARR in the quarter. Ta.
In short, this means CrowdStrike is growing its subscription base by acquiring new customers and upselling additional security modules to existing customers.
Either way, the company’s solid growth signals big things to come as the number of cyber threats continues to rise, and this means CrowdStrike’s growth curve could extend for years to come. It means.
3. Nvidia
Last but not least. Nvidia (NASDAQ:NVDA). Let’s be honest: No company or stock has ridden the AI wave as well or reached greater heights than Nvidia. The company now has a market capitalization hovering near $2 trillion, down from $279 billion 18 months ago, making it the third-largest publicly traded company in the United States.
While it may seem unlikely, there’s a good chance that Nvidia will continue to rise, and may even overtake it. apple And Microsoft becomes the world’s largest company.
That’s because its growth rate is truly amazing.revenue As of the most recent quarter (three months ending January 28), it grew 265%. Moreover, future growth projections are very high.
After all, no one knows how big the AI chip market will become. Advanced Micro Devices CEO Lisa Su recently said it could grow to $400 billion. Maybe more than that.
Either way, it’s clear that Nvidia has a significant lead over its competitors, and may be able to maintain that advantage for some time to come thanks to competitive advantages such as CUDA software. That makes his Nvidia, which has already made a lot of wealth, a prime candidate to make even more wealth in the coming years.
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John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Jake Lerch has held positions at Amazon, CrowdStrike, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Berkshire Hathaway, CrowdStrike, Microsoft, and he has positions in Nvidia. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
3 Artificial Intelligence (AI) Stocks That Can Help You Make Wealth was originally published by The Motley Fool.
