My 3 Monster AI Growth Stocks to Buy with Fist in the New Bull Market

Over the past two years, investors have been on the edge. The three major indexes fell into bearish territory in 2022 before rebounding in 2023 thanks to a surge in growth stocks. But it wasn’t until about a month ago that the S&P 500 hit a new all-time high, confirming that a bull market had indeed arrived.

The bull market didn’t just begin, it’s been going on ever since stocks began recovering from bear market lows. Bull markets are always declared after they have begun, but they usually last for several years, so there is still plenty of time for investors to profit. And one of the best ways is to invest in stocks associated with growth. That’s because stocks associated with growth often thrive in bullish environments.

There is a lot of potential to be found in artificial intelligence (AI), one of the fastest growing markets today. The global AI market has grown by double digits over the past decade and is expected to exceed $1 trillion by 2030. Three stocks could top the list, especially in this technology that has the potential to revolutionize everything from business to everyday life. Here are some monster AI growth stocks you can buy with your fists in the new bull market.

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1. Amazon

Amazon (AMZN 2.71%) Amazon Web Services (AWS), a cloud computing business, is making AI a top priority. Cloud business addresses all three “layers” of AI. This includes providing AI chips to companies that build their own large language models (LLMs), providing a fully managed choice of existing LLMs that can be customized for those who don’t want to build their own, and providing the company’s new AI-based applications and This includes providing the same applications. Assistant.

This strategy has made AWS the “go-to” destination for customers looking to integrate AI into their business. And since AWS is already a leader in the global cloud market, the customers already exist. AWS just needs to provide the right mix of products and services.

Amazon predicts that generative AI will generate tens of billions of dollars in revenue for the company over the next few years. AWS was already a major revenue generator for Amazon, so the future certainly looks bright for this division.

Amazon stock currently trades at 41x forward earnings estimates, down from 56x just a few months ago, representing a solid buying opportunity for this top growth stock.

2. Nvidia

nvidia (NVDA 3.58%) It was originally a giant in the gaming world, selling graphics processing units (GPUs) that created the colorful images and actions that gamers loved. But recently, it has become clear that GPUs can serve many other areas as well, thanks to their ability to handle multiple tasks simultaneously. This is why GPUs have become essential for AI, where high speed is a must.

Today, Nvidia’s chips dominate the AI ​​market with more than 80% share, and this leadership has helped the company’s profits soar. In the most recent quarter, sales increased by triple digits and net income increased by more than 1,000%.

But Nvidia’s success doesn’t seem like a one-time deal; instead, given the high demand in the AI ​​market and Nvidia’s leadership and investments in research and development, this momentum could continue.

Nvidia stock currently trades at just 33x forward earnings estimates, despite surging 200% over the past year. This is an absolute steal from this company leading the AI ​​era.

3. Palantir Technologies

Palantir Technologies (PLTR -0.53%), like Nvidia, did not start out as an AI giant in the commercial space. Instead, for many years Software as a Service company has been known to provide services to governments. Palantir is an expert at aggregating vast collections of data and analyzing this data to draw conclusions that may be critical to a particular customer’s operations.

Last year, Palantir launched its Artificial Intelligence Platform (AIP), which helps customers make better decisions and improve processes using generative AI and first-party data. Companies have combined this with AI bootcamps or sessions to introduce their services to potential customers.

The effort paid off. Palantir CEO Alex Karp wrote in a recent shareholder letter that AIP is contributing “significantly” to revenue and customer base growth.

Importantly, AI will help Palantir make big gains in commercial markets and reduce its dependence on government contracts. In the most recent quarter, U.S. commercial sales increased 70% and the number of U.S. commercial customers increased 55%.

At 73x forward earnings estimates, Palantir stock may seem expensive, but considering the company is in the early stages of its AI story, much more earnings growth is expected. This means that the stock is a great stock to buy now and hold for the long term.