Finding good chances is crucial for IT investors looking for long-term success in tech stocks. Three notable businesses have surfaced as strong candidates ready to influence the upcoming ten years. These businesses are similar in using cutting-edge AI technology to accelerate their growth.
The first, renowned for its state-of-the-art CPUs, is leading the charge in AI-enabled computing. The company is setting new standards for efficiency and speed. Meanwhile, with its AI-driven platform, the second demonstrates an impressive knack for driving revenue growth and client acquisition across various sectors. Lastly, the third’s rapid expansion in its membership base and product line underscores its strategic focus on leveraging AI in consumer finance, a truly innovative approach.
Overall, these businesses provide opportunities at the nexus of market need and technological innovation. The company uses AI-driven initiatives to meet changing customer demands and gain substantial market shares in their industries.
Explore how these businesses can use AI’s revolutionary potential to increase revenue, reach a wider audience, and boost profitability.
Tech Stocks: AMD (AMD)
The launch of Ryzen CPUs with embedded AI engines demonstrates AMD’s (NASDAQ:AMD) focus on AI integration inside its client business. As the first desktop CPU on the market with an integrated AI engine, AMD is positioned as a leader in AI-enabled computing for consumer devices with the Ryzen 8000 G-series processors. Additionally, AMD’s lead of over 90% of the market for AI-enabled PCs reflects how widely original equipment manufacturer partners and customers have embraced the company’s AI capabilities.
In 2023, sales of Ryzen 7000 Series CPUs boosted the client sector’s top-line by 62% year-over-year (YOY). AMD reflects its edge in capturing market demands by introducing new products such as the Ryzen 8000 series desktop and notebook AI CPUs, including the Ryzen 8040 Mobile series and Ryzen 8000 G-series processors.
Moreover, AMD can derive top-line growth and market share expansion in the client segment by differentiating its products and meeting the rising demand for AI-enabled computing solutions. There is solid growth in AMD’s Data Center GPU business, as revenue in Q4 surpassed $400 million and was above projections. In short, this acceleration was mostly caused by the MI300X GPUs’ progressive ramp.
Palantir (PLTR)
AIP, the AI-powered platform from Palantir (NYSE:PLTR), significantly increased revenue and broadened its addressable market. The U.S. commercial segment’s new customer acquisition rate increased sequentially to 22% in Q4, partly thanks to AIP’s accelerated client acquisition and conversion to enterprise engagements. The company’s record-high commercial total contract value (TCV) of $699 million in Q4 demonstrates its momentum in AIP.
Additionally, AIP increases Palantir’s target market and top-line possibilities, allowing it to handle a broader range of use cases and sectors. Indeed, AIP derives top-line growth in the U.S. commercial market by expediting onboarding new clients and converting leads into enterprise engagements.
Furthermore, Palantir had strong client growth, with a 35% YOY customer increase to 497. Strong market penetration is reflected in the U.S. commercial client count, which has increased dramatically by 55% YOY to 221 customers. The net dollar retention rate, which remained high at 108%, reflects strong client retention and growth within the current customer base.
To sum up, Palantir is a global leader in data analytics and AI because of its expanding client base and strong retention rate.
SoFi (SOFI)
One vital factor boosting SoFi’s (NASDAQ:SOFI) value potency is its quick expansion in terms of its member base and product offerings. In 2023, SoFi signed up approximately 585,000 new users, a 44% boost YOY. This wave of new members demonstrates how appealing SoFi’s financial services are and how rapidly it may grow its clientele.
As of 2023, the total number of members had surpassed 7.5 million, demonstrating a high market presence. In Q4 2023, SoFi also introduced around 695,000 new products, increasing the total number of products to almost 11 million. Expanding SoFi’s product line improves consumer interaction and income sources.
In Q4, the Financial Services segment’s net revenue increased by 115% YOY to $139 million. This category’s top-line contribution to SoFi’s total revenue highlights the effectiveness of its financial services and products. The Tech Platform division recorded record net sales of $97 million, up 13% YOY. Hence, the segment’s profitability and potential for growth are reflected in its 32% contribution margin.
Overall, SoFi’s performance in its business sectors demonstrates even more potential for expansion.
As of this writing, Yiannis Zourmpanos held long positions in AMD, PLTR and SOFI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.