3 AI Stocks With the Potential to Make You an Overnight Millionaire

Stocks to buy

AI stocks like Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) dominate the market with top-of-the-line chips that power the newest, most exciting AI software like ChatGPT. However, these stocks sit at a relatively high valuation, given the attention they have gathered from investors with recent performances. 

While there is certainly something to be said about their continued growth and ownership of shares, cheaper AI stocks are brimming with potential and a more solid runway supporting them in the coming years. These three AI stocks have excellent growth potential and are valued exceptionally well for investors looking to gain some considerable returns. 

Let’s learn more about these companies’ stakes in AI and how they are set up comfortably to grow and prosper in the foreseeable future. 

Intel (INTC)

Intel (NASDAQ:INTC) is a globally recognized processor company that has spent many years at the top of its market segment. The company recently showed it is not afraid to take leaps to stay ahead in today’s market. Primarily, Intel demonstrated its commitment to sticking with the times by launching its Gaudi 2 AI accelerator chips.

Although the Gaudi 2 chips are somewhat below the high-spec standards set by competitors’ products, such as Nvidia’s B200 Blackwell chip, the company is not out of the race. Intel recently announced a comparison between its new Gaudi 3 chips and Nvidia’s H100, and the results are shocking. 

The Gaudi 3 is reported to show 50% faster inference and 40% greater inference power efficiency. In addition to these impressive statistics, Intel has had much better per-dollar performance in its chips. Intel’s products are more affordable than its competitors, opening it up to a broader market. 

The company’s investments in bettering its chips and an already solid processing business give it an excellent foundation. Its first-quarter report included some mediocre results, causing a dip in its valuation. However, there is no denying Intel will become a major player and has excellent means for a considerable jump soon.

Amazon (AMZN)

Source: Tada Images / Shutterstock.com

Amazon (NASDAQ:AMZN) is one of the best-performing stocks ever. Its momentum has been astonishing and continues to surge, reporting a 14% year-over-year (YoY) increase in net sales and an over $10 billion increase in operating income last quarter.

While Amazon is not cheap, it is not valued as high as other AI stocks like Nvidia. The price becomes even more reasonable considering Amazon’s continued growth and expanding market share. Amazon is using its money to make heavy investments in the technology of the future, AI.

Notably, Amazon has invested $4 billion in Anthropic, a leading competitor of ChatGPT in generative AI. Amazon has also released its own AI service, Bedrock, a tool to assist developers in creating and shaping future generative AI applications.

Bedrock is part of Amazon’s cloud computing software, AWS, and further AI enhancements and additions will only improve its value to Amazon’s revenue streams. AWS brought in $24.2 billion last quarter, representing an increase of 13% YoY. 

Amazon is one of the companies with a very secure padding for continued investing in AI and will undoubtedly be an industry leader in the coming years.

Autodesk (ADSK)

Source: JHVEPhoto / Shutterstock.com

Autodesk (NASDAQ:ADSK) offers the latest and greatest technology in design software. The company’s unique selling point is its superior generative AI tools, which specialize in extremely high-quality 3D AI images.

The company’s CEO claims Autodesk’s tools are ten times faster and have much better quality than any other 3D image-generative AI. ADSK is also working on a shared platform that utilizes AI for designers at any point in the design process and allows seamless flow through operations and processes.

Autodesk is still a relatively young company and has not finished its period of growing pains. Although the company reported an 11% revenue increase year-over-year last quarter, its margin has remained flat, and cash has slightly dipped.

Despite the current fluctuations and ripples in Autodesk’s financials, the company is brimming with growth potential. It is in a great position to be at the forefront of generative AI design for years to come.

On the date of publication, Joel Lim did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Lim is a finance freelance writer who writes content for several companies like LTSE and Realtor, along with financial publications, including Mises Institute and Foundation for Economic Education.

Articles You May Like

3 Tech Stocks to Buy Now: May 2024
Stock Market Crash Warning: Don’t Get Caught Holding These 3 Transportation Stocks
The Coffee Stock Showdown: SBUX vs. BROS vs. MCD
The 50% Upside Club: 3 Overlooked Growth Stocks to Buy Now
3 Dividend Growth Stocks to Buy Now: May 2024