Artificial Intelligence (AI) is everywhere, transforming industries left and right. Indeed, as AI advances into new realms and revolutionizes industries, it’s clear why placing bets on promising AI stocks could be a game-changer.
Moreover, the potential for innovation and profitability seems virtually limitless. The global AI market is on an explosive trajectory. According to Fortune Business Insights, it’s expected to skyrocket from $621.19 billion in 2024 to a staggering $2.74 trillion by 2032. This represents a robust compound annual growth rate (CAGR) of 20.4% throughout the forecast period.
That said, wise investment decisions remain crucial. To fully benefit from this burgeoning industry, it is better to concentrate on three standout companies. These are not only trailblazers in their respective domains but also harness AI in remarkably impressive ways. Thus, now is the time to bet on these three AI stocks and build a successful portfolio for years to come.
Micron Technology (MU)
Micron Technology (NASDAQ:MU), a leading semiconductor company, uses AI to drive growth and innovation. It’s smartly boosting its High Bandwidth Memory (HBM) capabilities, which are critical for satisfying the complex requirements of AI applications.
Despite a 15% drop in the stock price over the last month, Micron’s superb third-quarter can’t be ignored. The company topped expectations with a non-GAAP earnings-per-share (EPS) of 62 cents and achieved $6.81 billion in revenue, up 81.6% year-over-year (YOY) and 17% sequentially. Robust AI demand and strong execution fueled this revenue surge. The demand for HBM chips has been so strong that they are entirely sold out for both 2024 and 2025.
Furthermore, Micron plans to expand AI-driven prospects with the upcoming HBM4 and HBM4E chips. Sanjay Mehrotra, Micron’s CEO, believes these advancements will position the business for significant revenue growth in the upcoming year.
Therefore, Micron is primed to dominate the market, making it a stock worth considering now.
ServiceNow (NOW)
ServiceNow (NYSE:NOW) is a cloud computing platform that utilizes AI to streamline complex workflows with features like Now Assist. This enables it to transform its business efficiency. Currently, the stock is trading around its 52-week high and shows no signs of slowing down, thanks to multiple diverse catalysts.
First is ServiceNow’s excellent Q2 earnings, which smashed expectations. Its non-GAAP EPS of $3.13 exceeded forecasts by 29 cents, and revenue rose to $2.63 billion, surpassing projections by a whopping $20 million. The company’s growth is also driven by high-value contracts, including 14 worth more than $5 million annually.
Moreover, ServiceNow thrives further in AI by partnering with industry stalwarts like Nvidia (NASDAQ:NVDA). Such partnerships provide a goldmine of opportunities for the company by providing tools that accelerate productivity.
Last but not least, a CEO survey highlighted that the CEOs are leveraging AI to supercharge growth. This makes ServiceNow a major beneficiary, with a tsunami of use cases that will bolster successful AI integrations.
GitLab (GTLB)
GitLab (NASDAQ:GTLB) offers an all-in-one DevSecOps platform that improves enterprise software delivery efficiency. This integrated approach is especially critical as software becomes more complex and security concerns grow due to advancements in AI.
In Q1 2025, GitLab has shown impressive growth. Its revenue clocked in at $169.2 million, a 33% increase over the previous year. The company also reached a record $37 million free cash flow. Despite these strong results, the stock has yet to see a significant boost.
That said, GitLab is now perfectly positioned to benefit from the AI revolution. With the integration of AI in the development platform, GitLab improves every aspect of the development lifecycle and boosts productivity with fewer security issues. TipRanks analysts recognize this potential, assigning it a “strong buy” rating with a robust 28.83% upside.
Thus, this is the perfect time to hop in, as substantial returns are likely as the market starts to fully appreciate GitLab’s financials and innovations.
On the date of publication, Nabeel Bukhari did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor held a LONG position in NVDA.