2 Artificial Intelligence (AI) Stocks That Can Make You a Millionaire | The motley fool

Interest in artificial intelligence (AI) skyrocketed last year following the launch of OpenAI’s ChatGPT. The generative chatbot wowed the tech world with its ability to produce human-like dialogue based on prompts. OpenAI’s platform highlighted how far AI has advanced and its potential to drive countless industries.

As a result, dozens of tech companies jumped into AI and enjoyed huge stock gains for their efforts. Companies like Nvidia AND Amazon have seen their shares rise 228% and 45% over the past 12 months, thanks to dominant positions in their respective AI areas.

However, the market is vast and appears to have plenty of room to operate, projected to expand at a compound annual growth rate of 37% at least until 2030. Therefore, it may be worth investing in a company that is still in the early stages of its AI journey and could bring significant growth in the coming years as the industry develops.

Here are two AI stocks that could make you a millionaire if you’re willing to wait.

1. Intel

Shares in Intel (INTC -0.03%) have grown more than 115,000% since its initial public offering in 1971. The company was once the biggest name in chips and has undoubtedly created many millionaires in its time. However, the past decade has challenged the tech giant, with its stock down 3% alongside declining revenue.

However, recent developments suggest a recovery is underway, with Intel an increasingly attractive way to invest in AI. The chipmaker’s fall from grace and changes in the technology market forced Intel to rethink its business model. The company is reshaping its business around the semiconductor foundry market, an industry that is projected to double in value in 2022 and reach $232 billion by 2032.

Intel began its foundry expansion by starting to build chip factories around the world, with its main focus in the US. The company plans to build at least four American manufacturing facilities. On June 11, Intel temporarily delayed construction of a factory in Israel as it works to proceed with its multibillion-dollar investment at a slower pace and keep finances under control. The move comes after Intel announced it will sell a 49% stake in its Irish factory for $11 billion.

The chip factories won’t be cheap, but they could pay off in the long run, especially with Intel’s position in AI. While rivals such as Nvidia and Advanced Micro Devices are prioritizing chip design and outsourcing much of their manufacturing, Intel may have a lucrative opportunity to become one of the world’s largest AI chipmakers.

Additionally, Intel stock trades at 28 times its forward earnings, significantly lower than Nvidia’s 48 and AMD’s 46. The numbers show that Intel stock is potentially the biggest bargain in AI chips. In addition to a promising change in its business model, Intel is a stock that can make you a millionaire over the long term.

2. Apple

Apple (AAPL -0.82%) was slower than many of its rivals to join the AI ​​race. Like AI-driven companies Microsoft and Amazon have seen their shares rise 33% and 45% since last June, Apple is up 16%. However, the company’s more gradual venture into AI is not out of the norm for the consumer tech giant.

Apple hasn’t necessarily found success by being first in a technology. Instead, the company tends to stand on the sidelines as it watches the competition, perfecting its version and then launching a product that catapults it to the top of the industry. The tech giant has used this strategy to dominate smartphones, tablets, headphones and smartwatches.

Other companies led these industries before Apple came on the scene, but have largely fallen by the wayside. Now, Apple appears to be using a similar strategy with AI. The iPhone maker hosted its Worldwide Developers Conference on June 10, debuting its new AI platform, Apple Intelligence. The company’s shares rose 12% since the announcement, allowing it to overtake Microsoft and reclaim its position as the world’s most valuable company by market capitalization.

Apple Intelligence will launch in September and bring AI improvements to the company’s entire product line, including iPhone 15 Pro models and Macs and iPads equipped with M1 to M4 chips. New features like speech and image generation, a smarter Siri and editing tools will elevate Apple’s AI offerings. Meanwhile, the new features could motivate many consumers to upgrade to the company’s newest devices to gain access to AI tools.

Apple stock isn’t a bargain, with its forward price-to-earnings (P/E) ratio at 33. However, compared to Microsoft’s forward P/E of 37 and Amazon’s 40, Apple is a much better value if you’re looking to invest in AI. The company is just starting out in the industry and may be worth investing in before it’s too late.