2 AI Stocks to Buy Now at $200

Artificial intelligence (AI) is estimated to add trillions of dollars to the global economy through cost savings and productivity gains in the coming years. The returns for investors could be very lucrative, if you own the right stocks.

While some AI Actions Markets will be volatile as Wall Street determines winners and losers. Investors can stack the odds in their favor by investing in profitable technology leaders that are already seeing growing demand for their services.

Here are two stocks benefiting from the rise of AI that an investor can easily afford for less than $200.

1. Palantir Technologies

Palantir Technologies (NYSE: PLTR) is seeing accelerated growth for its AI software platforms. The company is known for its relationships with the U.S. Department of Defense and intelligence agencies, but its momentum in signing enterprise deals speaks to the inherent value of the company’s AI platform and why the stock should be a long-term winner.

Palantir’s revenue, which comes from subscriptions, grew 27% year over year in the second quarter. That’s also up from 13% in the third quarter of 2023, and its quarterly growth has improved every quarter over the past year.

Government revenue continues to grow rapidly, up 23% year over year to $371 million in the second quarter. But Palantir’s U.S. commercial customer base has nearly doubled over the past year, with U.S. commercial revenue reaching $159 million in the most recent quarter.

Palantir signs deals with companies across a range of industries, including healthcare and consumer goods. Earlier this year, it signed a 10-year expansion deal with the Cleveland Clinic to deploy Palantir in more hospitals. It also expanded its deal with General mills; Cheerios maker saves $14 million a year with Palantir.

These deals show the breadth of Palantir’s software capabilities. Most of its revenue comes from the U.S. government, but Palantir is proving to be a viable option for the world’s largest organizations. The company’s long-term growth potential could be enormous.

More importantly, Palantir is a profitable company, generating $134 million in net income in the second quarter. The stock has had its ups and downs in recent years, but it will keep up with the company’s long-term growth.

2. Arm supports

Firearms (NASDAQ: ARM) is a global leader in the semiconductor industry. Virtually all of the world’s smartphones use Arm-based processors, but the company has a huge opportunity to expand into the data center market as cloud companies upgrade their infrastructure for AI.

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The first thing to understand about Arm, and this explains why it’s a good investment, is that the company generates revenue by licensing its chip products to other companies and semiconductor manufacturers.

Additionally, after licensing a product, the company collects royalties on nearly all processors sold using its technology. These royalties are typically based on a percentage of the chip’s average selling price.

As you might think…