The 3 Best AI Stocks To Buy In July 2024


  • The AI industry is one of the fastest-growing industries in the world, and AI stocks are in hot demand due to their extreme profitability. 
  • Amazon (AMZN): This well-known e-commerce giant has begun integrating AI into its services to achieve greater results. Its latest payment mechanism is proof of this. 
  • Alphabet (GOOGL): Alphabet is one of the companies at the forefront of the AI movement. Its latest project attempts to use AI technology to harness nuclear fusion. 
  • Palantir Technologies (PLTR): Palantir Technologies is a data analytics company poised to benefit greatly from AI. It is already churning out impressive AI solutions.
Best AI Stocks - The 3 Best AI Stocks To Buy In July 2024

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Artificial intelligence (AI) has taken the world by storm. Although it is still in its early stages, it is already one of the fastest-growing industries in the world, with many companies exploring how to integrate the technology one way or the other.

Since the AI industry is still in its infancy, now is the best time to invest in high-potential AI stocks for massive gains. Choosing the best AI stocks may be easier said than done, though, mainly because of the industry’s newness and lack of major players.

Therefore, investors interested in AI stocks face a difficult challenge: identifying the AI companies that will be able to dominate the space in the near future. This article highlights three AI stocks that stand out above the competition and could quickly capitalize on the AI market opportunity.

Amazon (AMZN)

Amazon building at night time with logo light up on building
Source: Mike Mareen /

Amazon (NASDAQ:AMZN) is an American multinational company best known for revolutionizing e-commerce, but that’s not the only thing the company is involved in. It is also involved in cloud computing, digital streaming, online advertising and, most recently, AI. 

AI’s potential to transform businesses is well documented, so it is no surprise that the world’s biggest companies are rushing to integrate it and explore how it can improve their products and services. Amazon is no different. 

The company has found various ways to integrate AI into its platform, such as its recent AI tool, which allows retailers to list their products on Amazon easily. Another example is Amazon One a payment mechanism which uses AI to identify people, making it possible for them to pay in Amazon stores by scanning their palms. Furthermore, AMZN’s virtual assistant, Alexa, relies on AI for several tasks. 

The way Amazon has utilized AI so far has been nothing short of impressive and it is evident that the company will be one of the frontrunners of AI tech. This is why I think investing in AMZN stocks is a great idea. 

Furthermore, Amazon is one of the most profitable companies on the planet. A quick look at the company’s  latest quarterly report shows that it is having a great year. Its net sales have increased by 13% to $143.4 billion, and it also generated an operational income of 15.3 billion. 

Alphabet (GOOGL)

Closeup logo of website on an iPhone on wooden table. GOOG stock and Google layoffs
Source: Koshiro K /

Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is one of the largest technology companies by value, but perhaps the most impressive thing about the company is its number of subsidiaries. Alphabet owns over twenty subsidiaries, including major tech players like Google, Isomorphic Labs and X Development. 

Alphabet has long been interested in AI and has incorporated the technology into its strategy to fend off competition and maintain market dominance. This is evident from the recent integration of AI into many of Alphabet’s products and services, including Google Search, Google Docs and Google Cloud. 

But that’s not all. The company is also exploring AI’s potential in harnessing nuclear energy and ultimately contributing to efforts to solve the issue of sustainable and clean power. If successful, this would automatically make Alphabet one of the pioneers of AI technology, and I believe this makes the company extremely bullish.

Furthermore, on the financial front, Alphabet is having a great year. According to its latest earnings report, the company experienced a 15% increase in sales year over year, generating $16.8 billion in free cash flow.

Palantir Technologies (PLTR)

In this photo illustration, the Palantir Technologies (PLTR) logo is displayed on a smartphone screen.
Source: rafapress /

Palantir Technologies (NYSE:PLTR) is an American technology company that specializes in producing software platforms for big data analytics. One of the most common use cases for AI technology is analyzing big data, placing Palantir Technologies in a great position to benefit from this. 

The company has already launched software that helps businesses to structure and store data accurately. Its solution, the Foundry Ontology system, organizes and stores user data through mapping and relationships. This software gives Palantir Technologies a first-mover advantage and the opportunity to dominate a new, emerging market. 

The Foundry Ontology System is not Palantir Technologies’ only AI solution, though. It also developed the Palantir Artificial Intelligence Platform (AIP), a stack that helps users and businesses develop AI solutions for various contexts. The U.S. government used AIP to build its first AI-powered military vehicle. 

Not many companies have made as much progress as Palantir Technologies in the AI space, and this is what makes it a no-brainer for investors interested in AI stocks. Potential aside, Palantir Technologies is also a very profitable company. According to its latest quarterly report, the company generated a net income of $106 million and a revenue of $634 million. It also recorded a revenue growth of 21% year over year and a sixth consecutive quarter of GAAP profitability. This means that for the last six quarters, the company has made more money than it has spent.

On the date of publication, Joel Lim 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 Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Joel Lim is a contributor at and a finance content contractor who creates content for several companies like LTSE and Realtor, along with financial publications, including Business Insider, Yahoo Finance, Mises Institution and Foundation for Economic Education.

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