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My Best Artificial Intelligence (AI) Stocks to Buy Right Now at $100

Vaseline 4 weeks ago

These three companies stand out from the crowd.

Artificial intelligence (AI) may be the hottest investment area right now, but the good news is that you don’t have to invest a fortune to potentially benefit from it down the road. Many promising players trade for less than $100, and some even trade for less than $10.

Now let’s say you have $100 that you want to invest in this fast-growing area. This amount will allow you to join three of my favorite AI players, each with a business that helps them stand out from the crowd. It’s worth the gamble, as the AI ​​market, with a compound annual growth rate in the double digits, is expected to surpass $1 trillion by the end of the decade. And this means we could be at the beginning of an exciting growth story with significant profit potential ahead.

So let’s take a look at my top AI stocks, players that together have the potential to grow your $100 significantly as this market takes off.

An investor shows another investor something on a phone.

Image source: Getty Images.

1. Palantir Technologies

Palantir Technologies (PLTR -3.12%) has traditionally been known for its contracts with governments, helping them collect their data and use it better for various projects. Today, however, growth at Palantir is taking off thanks to the use of AI across all platforms, and the idea that this AI-powered technology can be quite useful for businesses as well.

In fact, commercial use of Palantir’s systems is growing thanks to the company’s launch of its Artificial Intelligence Platform (AIP) and AIP Bootcamps to show potential users how transformative this technology could be for their businesses.

As a result, Palantir reported 70% growth in US commercial revenue and a 55% increase in the number of US commercial customers in its most recent quarter. This company is currently driving growth and Palantir CEO Alex Karp expects this trend to continue.

Palantir partners with top cloud providers and recently announced a deal to make its platforms deployable anywhere Oracle cloud infrastructure. All of this could make it easier for Palantir to reach customers of these specific cloud services.

Today, Palantir’s stock trades for around $21, but with growth in its U.S. commercial business just getting underway, the stock could easily go higher from here.

2. Intel

Intel (INTC -2.40%) fell behind in the early days of the AI ​​chip race, but two potential revenue streams may be lurking. The company just announced the upcoming launch of its Gaudi 3 AI accelerator, a chip it says could outperform the market leader Nvidia‘s top chip when used in certain major language models.

While Intel hasn’t specified a price range for Gaudi 3, it does indicate that the chip is cheaper than Nvidia’s H100. And this combination of solid performance at a good price could appeal to a wide range of AI customers. Even if Nvidia’s best-performing chip ever (coming later this year) is more powerful, some projects don’t necessarily need that power. And those customers could choose Intel.

Intel could also benefit from opening its manufacturing network to others in a quest to become the world’s No. 2 chipmaker by 2030. This offers the company a whole new revenue stream, and as the only US-based foundry, it could appeal to many local customers.

Intel shares are trading for around $35, making them a perfect fit for our current $100 budget, but the aforementioned catalysts could eventually take them to much higher levels.

3. SoundHound AI

SoundHound AI (SOUND -7.31%) is an innovator in voice AI, with its platform that instantly “translates” speech into meaning thanks to automatic speech recognition and natural language understanding technologies.

Today, SoundHound serves companies such as restaurants using its platform to take customer orders or automakers integrating voice into vehicles, but in the future, other industries including healthcare and retail offer additional opportunities. In fact, the total addressable market could exceed $160 billion by 2026.

Although SoundHound is currently small, with $17 million in revenue in its most recent quarter, demand for its voice technology appears to be high. In the quarter, revenue and adjusted EBITDA both increased by 80% – reaching record levels. The company also reported a subscription and booking backlog of more than $600 million and achieved an annual run rate of 3.5 billion searches – up 50% from the previous year.

Shares of SoundHound soared earlier this year on news that top chip company Nvidia had invested in the company, but have since fallen back to around $4. This young voice AI player still has a long way to go to profitability, but today Today he is an attractive bet for aggressive investors who don’t mind some risk.

Adria Cimino has positions at Oracle. The Motley Fool holds positions in and recommends Nvidia, Oracle, and Palantir Technologies. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 relying on Intel and short May 2024 $47 relying on Intel. The Motley Fool has a disclosure policy.