Source: Phonlamai Photo / Shutterstock.com
Investors are increasingly using artificial intelligence (AI) tech stock predictions to navigate the complex tech industry. This article shines a light on the hidden gems with immense potential for savvy investors.
We’ll uncover these companies’ unique offerings and innovative solutions while exploring why AI predicts a bright future for them. To generate this list, I generated some ideas using the Finviz stock screener. I then exported this list of ideas into ChatGPT to seek some analysis and suggestions. With these ideas in hand, I opened up a machine learning tool in Google Sheets and narrowed them down to the following list.
Let’s begin spotlighting companies poised for triple-digit returns.
Palantir (PLTR)
The big data analytics services from Palantir (NYSE:PLTR) are popular among government agencies and businesses for analyzing large datasets. The company has become attractive for growth-seeking investors due to its strong contracts and position in the data analytics market.
AI tech stock predictions favor recent company developments, such as PLTR stock’s earnings per share growing 115.20% quarter-over-quarter. The company is also highly liquid and has no long-term debt, meaning it can pursue its expansion plans aggressively.
The company is repurposing its technology from military and industrial applications to government and commercial use. Palantir has a $463 million contract with the U.S. Special Operations Command. Additionally, the company secured deals with Amazon (NASDAQ:AMZN) to make its product Foundry and Panasonic (OTCMKTS:PCRFY) to improve battery manufacturing. These partnerships are expected to lead to more opportunities with large corporations.
CrowdStrike (CRWD)
Amid the ever-growing significance of cybersecurity in the modern world, CrowdStrike Holdings (NASDAQ:CRWD) stands out as a highly promising investment. Providing a range of services, including cloud workload and endpoint security, as well as threat intelligence and cyberattack response, the company’s offerings are both robust and effective, contributing to its strong position within the cybersecurity field.
The financial records of CrowdStrike reveal a considerable augmentation in its revenue, demonstrated by a surge from fiscal year 2021 and 2023. In addition, the upswing in free cash flow directs the same. In the year 2024, the revenue skyrocketed by 42%, and their annual recurring revenue hit $2.7 billion.
The upswing in free cash flow to $227.4 million also suggests a significant increase in the number of subscribers. Being a top-tier company, more than half of the Fortune 500 companies are their customers. The firm predicts a favorable trend by 2025, with a forecasted total accessible market of $97.8 billion.
Twilio (TWLO)
Twilio (NYSE:TWLO) runs a cloud communications platform enabling developers to manage real-time communication in their software applications. Its approach to communication and solid growth set it apart, making it an interesting tech stock to ponder.
TWLO stock saw its share surge 11% after reports of activist hedge fund Legion Partners pushing for board changes and potential divestitures. Despite Legion’s relatively small stake in Twilio, the upcoming conversion of supervoting stocks to common shares on June 28 could level the playing field.
Twilio’s stock has been underperforming peers and is down over 80% from its February 2021 record. This underperformance, coupled with the upcoming stock conversion, could open opportunities for other activists.
Another draw card for the brand is that it’s trading below its analyst price target of $66.95, and it’s continuing to experience strong revenue growth.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.