3 AI growth stocks that are quietly making investors a fortune
Itâs no secret that growth stocks in the artificial intelligence (AI) space are making investors a lot of money right now. Over the last few months, well-known stocks such as Nvidia, Alphabet, and Palantir have soared.
But not every AI stock’s making headlines and seeing huge amounts of hype. Hereâs a look at three lesser-known shares that are quietly making investors a fortune.
A vital data player
First up, we have Snowflake (NYSE: SNOW). It offers solutions that enable businesses to get their data structured properly for AI use.
Late last year, I named this as my top US growth stock for 2026. That call was pretty good â itâs up about 75% year to date. I still believe itâs worth considering however. Recently, a company insider said heâs expecting revenue to more than double in the next few years.
If the company can achieve that kind of growth, Iâd expect the share price to be materially higher in a few yearsâ time.
A risk here is competition from rival Databricks. Not only could this company capture market share but if it does an IPO, it could steal investor capital.
Iâm optimistic about the long-term outlook though. For my portfolio, this is now a core AI holding.
Specialised chip-making equipment
Next, we have Lam Research (NASDAQ: LRCX). It makes highly specialised machinery thatâs critical for manufacturing the advanced chips that are used in AI.
It recently provided guidance that was above Wall Streetâs estimates as chipmakers (like Taiwan Semi and Intel) ordered more of its equipment. So it clearly has momentum right now.
Now, this stock’s up about 120% this year (and more than 60% in three months). After that kind of run, I wouldnât chase it as the valuation’s risen considerably.
If it was to drop back 10%-20% though (which it probably will do at some point), I think it could be worth considering. China remains a risk as the company generates a large chunk of revenues there, but the long-term growth story associated with semiconductor production looks compelling, in my view.
Top-notch cybersecurity
Finally, we have Zscaler (NASDAQ: ZS). Itâs a fast-growing cybersecurity company that is helping companies manage AI-related threats
This stock is up about 80% this year. Yet despite these impressive gains, no one is really talking about it.
From an investment perspective, Zscaler’s higher up on the risk spectrum. Not only does it face intense competition from larger players like CrowdStrike and Palo Alto Networks but it’s only just turning profitable now.
Taking a long-term view though, I see a ton of potential. Because AI’s going to dramatically increase the threat landscape for businesses.
“We are rapidly expanding our AI security portfolio to address the emerging risks of AI models and applications.”
Zscaler CEO Jay Chaudhry
Itâs worth noting that the company recently forecast annual revenue above Wall Street estimates. It seems a rise in cybercrime, and the rapid adoption of generative AI, have prompted companies to increase investments in cybersecurity to safeguard their digital infrastructure and data.
Given this momentum, I believe the stock’s worth considering today.
The post 3 AI growth stocks that are quietly making investors a fortune appeared first on The Motley Fool UK.
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Edward Sheldon has positions in Alphabet, Nvidia, Snowflake, Lam Research, Palo Alto Networks, CrowdStrike, and Zscaler. The Motley Fool UK has recommended Alphabet, Lam Research, Nvidia, Snowflake, Taiwan Semiconductor Manufacturing, and Zscaler. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
