The artificial intelligence (AI) market exploded last year after OpenAI’s launch of ChatGPT reignited interest in the technology. Companies across tech sectors shifted operations to the emerging sector to grab a piece of a $200 billion pie.
The AI market is developing rapidly. Data from Grand View Research expects the company to grow at a compound annual growth rate (CAGR) of 37% by 2030 and reach a value of nearly $2 trillion. Therefore, it is not surprising that investors are flocking to the industry. Excitement about AI saw this Nasdaq 100 technology sector The index is rising 67% in 2023, creating more than a few millionaires along the way.
The market has shown no signs of slowing down. AI can potentially advance many areas, from cloud computing to e-commerce, consumer products, autonomous vehicles, video games and more. Therefore, it is not too late to invest in AI and reap significant long-term benefits from its development.
Here are three millionaire maker AI stocks to buy this April.
1. Nvidia
It shouldn’t be too surprising to see it Nvidia (NASDAQ:NVDA) on this list after the company cornered the AI chip market last year. In 2023, Nvidia secured an estimated 90% market share in AI graphics processing units (GPUs), the chips needed to train and run AI models.
Nvidia’s years of dominance in GPUs allowed the company to gain an edge over many of its rivals in the AI space, causing its stock to rise 214% over the last year while increasing profits.
In its most recent quarter (the fourth quarter of fiscal 2024, which ended in January), the company’s revenue rose 265% year-over-year to $22 billion. Operating income rose 983% to nearly $14 billion. This tremendous growth was primarily driven by a 409% increase in data center revenue, reflecting an increase in AI GPU sales.
The huge potential of AI suggests that demand for chips will continue to grow and Nvidia will likely continue to see big gains from the industry.
Meanwhile, the chart above shows that Nvidia’s price-to-free cash flow ratio and price-to-earnings (P/E) ratio have declined over the past year, suggesting that the stock is in one of its best valued spots in 12 months located. Therefore, now is an excellent time to consider investing in this multi-million dollar AI stock before it’s too late.
2.Microsoft
Microsoft (NASDAQ:MSFT) has become a tech giant that surpasses everyone Apple Earlier this year it was declared the most valuable company in the world by market capitalization. The tech giant is home to some of the most well-known brands, including Windows, Office, Azure, Xbox and LinkedIn.
However, all eyes have been on Microsoft’s growing position in AI this year. The company was an early investor in AI, pouring billions into a private company, OpenAI, in 2019. The lucrative partnership gave Microsoft access to some of the industry’s most advanced AI models and helped its stock rise more than 45% year-over-year.
Microsoft has leveraged OpenAI’s technology to introduce AI capabilities across its product range and stay ahead of its competitors. In 2023, the company added new AI tools to its Azure cloud platform, integrated aspects of ChatGPT into its Bing search engine, and increased the productivity of its office software suite by adding AI capabilities. OpenAI’s models and Microsoft’s huge user base could make the company unstoppable in the AI space.
Microsoft’s P/E ratio of 37 means the stock isn’t exactly trading cheaply. However, its prominent role in AI and its $67 billion in free cash flow make the stock worth the high price as the company has the resources to continue investing in its business and maintaining its edge. I wouldn’t bet against Microsoft’s ability to create more millionaires from investors willing to hold for the long term.
3. Advanced micro devices
Chip stocks are in focus amid rising interest in AI modern micro devices (NASDAQ:AMD) is another attractive investment option. The company was a little late to the AI party as Nvidia was quicker to market. However, AMD is investing heavily in the industry and has entered into some lucrative partnerships that could take the company far in the AI industry in the long term.
Last December, the company introduced its MI300X AI GPU. This new chip is intended to compete directly with Nvidia’s offerings and has already caught the attention of some of the most prominent tech companies, signing on with Microsoft and others Metaplatforms as customers.
Additionally, AMD wants to lead its own AI space by doubling its offering of AI-powered PCs. According to research firm IDC, PC shipments are expected to rise sharply this year, with AI integration serving as a key catalyst. And a Canalys report predicts that 60% of all PCs shipped in 2027 will be AI-enabled.
This chart shows that AMD stock has significant potential in the coming years. The company’s earnings could reach just over $7 per share over the next two fiscal years. Multiplying this value by AMD’s forward P/E ratio of 47 gives a share price of $329.
Taking AMD’s current position into account, these projections would see its share price rise 93% by fiscal 2026. In addition to its growing AI prospects, AMD is a stock that could make you a millionaire.
Should you invest $1,000 in Nvidia now?
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Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft and Nvidia. The Motley Fool recommends the following options: long $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has a disclosure policy.
3 Millionaire-Maker Artificial Intelligence Stocks was originally published by The Motley Fool