Key Takeaways
- Artificial intelligence (AI) is a significant advance in society, bringing disruptive change to various industries
- There are different ways to invest in AI, including enterprise AI, applied AI, and full-stack products
- Palantir Technologies, SoundHound AI, and Tesla are three AI plays representing different themes
- These companies are working on innovative AI features and products, with significant potential for growth and returns on investment
Introduction to Artificial Intelligence
Artificial intelligence (AI) is arguably the most significant advance in our society since the smartphone, which "essentially put the internet in everyone’s pocket, giving rise to the app economy, mobile payments, on-demand videos and music, and mobile commerce." As computers become increasingly powerful, incorporating machine learning, large language models, and deep reasoning, AI is changing how we work, think, and entertain ourselves. Companies are working overtime to launch new AI features that help them operate more efficiently, as well as to captivate users with innovative services and products.
Enterprise AI: Palantir Technologies
Palantir Technologies is "taking AI and running with it" by operating powerful platforms that provide government agencies and commercial clients with insights that help them run better. The company launched its Artificial Intelligence Platform (AIP) in April 2023, which is integrated into its Foundry and Gotham software, allowing users to build workflows, perform actions, and get real-time data. As a result, Palantir is securing new work at a rapid pace and with a diverse range of clients, including a deal with the U.S. Navy to help improve shipbuilding and manage its supply chain. According to the article, "Palantir’s stock is up more than 960% since Jan. 1, 2024 — and there appears to be much more runway ahead."
Applied AI: SoundHound AI
SoundHound AI works at the intersection of artificial intelligence and voice recognition, with an AI platform designed to allow users to have conversations with voice-enabled services and apps. The company has a lot of customers, including White Castle, Square, Motorola Solutions, and Snap, which use SoundHound’s platform in various applications. As the article notes, "SoundHound isn’t profitable, but it’s scaling up," with revenue in the third quarter up 68% from the year-ago quarter, and the company has $269 million in cash or cash equivalents with no debt.
Big-Swing AI: Tesla
Tesla is on the surface an electric vehicle company, but the work that it’s doing with AI goes far beyond automobiles. CEO Elon Musk has Tesla investing heavily in its AI platform, which runs its self-driving software and trains its networks to recognize things from road layouts to driving conditions and predict the paths of other vehicles. Tesla has now made its Robotaxi app available throughout the U.S. and Canada, and the company seems to be on track to eventually rolling it out so Tesla users can monetize their vehicles by making them available as autonomous taxis. As the article quotes, "Musk is highly incentivized to make it happen, considering that his new $1 trillion incentive plan includes a goal that Tesla successfully build and deploy 1 million Optimus robots."
Conclusion and Investment Opportunities
In conclusion, AI is a significant advance in society, and there are different ways to invest in it. Palantir Technologies, SoundHound AI, and Tesla are three AI plays representing different themes, each with significant potential for growth and returns on investment. As the article notes, "these companies are working on innovative AI features and products, with significant potential for growth and returns on investment." Investors should consider these opportunities and do their own research to determine which AI play is right for them.
https://www.fool.com/investing/2026/01/04/my-3-favorite-artificial-intelligence-stocks-to/