Investors looking for the best artificial intelligence actions (AI) might want to watch the companies that Wall Street currently gives. Some technology leaders in hardware and software are experiencing strong demand for their technology, but, for any reason, do not yet see validation in their course of action. The greater growth of these companies will solve this problem.
Here are two AI actions that could provide explosive yields to investors in the coming years.
1. Advanced microphone
When writing these lines, Advanced micro-apparents (AMD -2.36%)) The action is down 8% after declaring the results of the profits from the fourth quarter. AMD is one of the main suppliers of graphic processing units (GPU), which are used for AI formation, and it also gains market share against Intel on the consumer market. The two markets should continue to offer strong growth for AMD in 2025, which made the recent drop in action an excellent buying opportunity.
AMD finished 2024 on a solid note, with fourth quarter income and adjusted profits up 24% and 42%, from year to year. But Wall Street could have been looking for more specific advice regarding AMD’s revenues that he expects GPUs from the data center in 2025.
There have been concerns about the growth in capital expenditure in AI infrastructure. Deepseek in China claims to have built a cutting -edge AI model for a small sum of money that can compete with the best Openai models and other IA leaders. This aroused fears of less investment in the AI data center, which brought in $ 5 billion in revenue for the AMD last year, or 19% of its total income.
However, these fears seem exaggerated. The investment required to build these important language models such as Deepseek R1 and the Openai Chatppt is not comparable to the investment required to build AI systems in data centers to meet the needs of companies. For example, Meta-platformsWho uses the MI300X Instinct GPU of AMD in its Grand Teton AI platform, said it would spend between 60 and $ 65 billion this year, with an important part allocated to generative AI and others commercial needs. AMD expects another year of strong growth in its data center activity, and it was after a year when its data center segment increased by 94% compared to 2023.
At the same time, AMD also declared an increase of 58% of one year on the other of the income of its client segment in the fourth quarter, which includes sales of its Ryzen PC processors. AMD seems well positioned for continuous momentum on the PC market after Apron Announced that it would offer a full range of commercial PCs powered by Ryzen for the first time.
Investors can buy AMD shares from an attractive price / benefit / benefit ratio of 23 during the current action of $ 112, which is a good deal for this flea supplier.
2. C3.ai
Investors interested in AI should consider the actions exposed both to hardware and software opportunities. One of the best AI software actions to be considered for 2025 is C3.ai (Ai -0.51%))which provides corporate AI applications used by military and fortune companies 500 American.
C3.AI AI models provide very specific results to help companies do more with less. Organizations find real cost savings using its software, which creates enormous useful value and puts the company on a solid growth trajectory.
It is a relatively small company with only $ 346 million in train income, but it adapts quickly. Revenues increased by 29% from one year to the next in the last quarter and accelerated in the past year.
With a market capitalization of $ 4.4 billion, C3.AI shares are negotiated sales at 12 times, which is reasonable for a fast -growing software company. However, C3.AI actions could be negotiated with a higher evaluation if it did not depend on a small number of companies for income. For example, his contract with Baker Hughes represents 18% of its income in the last quarter and this contract should expire in June.
This risk gradually fades while C3.AI diversifies its customers. Towards the end of 2024, Microsoft announced a five and a half year agreement with C3.ai to accelerate its investment in the AI company. The agreement made of C3.AI The AIP Proper Application Supplier on the Microsoft Azure Cloud Service, which could result in significant income growth. The growth of this agreement could also help C3.ai to evolve its business to improve margins and make a profit.
The action has increased by 28% since C3.AI announced the agreement with Microsoft. It may have room to operate in 2025. The title gives investors a great exposure to the opportunity for massive growth in AI software.
Randi Zuckerberg, former Director of Development of the Facebook and Sister of the CEO of Meta Platforms, Mark Zuckerberg, is a member of the board of directors of Motley Fool’s. John Ballard has positions in advanced micro-apparently. The Motley Fool has positions and recommends advanced micro-apparently, Intel, Meta, Microsoft and Palantir technologies. The Motley Fool recommends C3.ai and recommends the following options: Long January 2026 395 $ Calls on Microsoft, short February 2025 27 $ Intel calls, and short January 2026 405 $ calls Microsoft. The Motley Fool has a policy of disclosure.
