There’s always a palpable buzz about stocks the smart money is buying. These aren’t mere fleeting trends; they’re astute decisions of people with incredible financial acumen. However, given the market headwinds, it would be easy to believe that taking a defensive attitude is the only sensible course of action. Meanwhile, it’s essential to distinguish between those merely chasing trends and those making savvy investments.
As we probe the enormous array of investment opportunities, certain sectors stand out. Artificial intelligence, cloud computing, and payments are not merely glimmers but dazzling prospects set to dominate the investment horizon. Recent insights from PwC highlight this potential, predicting that the global artificial intelligence market alone will contribute a whopping $15.7 trillion to the global economy by 2030. Furthermore, as the evolving market offers prospective stability and growth, these three standout stocks promise resilience and massive returns in the years to come.
Palantir (PLTR)
Palantir (NYSE:PLTR) continues positioning itself as a potential juggernaut this year, rallying with an impressive 135% year-to-date gain on the back of the burgeoning demand for AI. Further bolstering this positive sentiment, the recent quarter shone big money scooping 1.38 billion of its shares. Heavyweights such as D.E Shaw and Co. and Scout Investment Inc. took note, splurging with purchases of $17.8 million and $12.1 million, respectively.
Moreover, Palantir’s first two quarters of 2023 reflected robust health. It recorded net incomes of $17 million and $28 million, showcasing its strength in its niche and its ability to execute effectively. A testament to its expanding footprint, the company celebrated a 38% year-over-year surge in its customer base.
Furthermore, with revenues hitting the staggering $533 million mark in the second quarter, Palantir announced a stock repurchase program that can reach up to $1.0 billion worth of outstanding Class A common stock. Additionally, whispers of a potential S&P 500 inclusion in 2024 hint at heightened visibility and more upside ahead.
Microsoft (MSFT)
Dominating the realms of personal computing, cloud prowess, and gaming, Microsoft (NASDAQ:MSFT) has continually enriched its shareholders. MSFT’s stock has triumphantly tripled in the past five years, standing tall among the elite mega-cap tech stocks. Its recent fiscal fourth quarter serves as a testament to this prowess, clocking a diluted earnings-per-share of $2.69 and revenue of 56.2 billion. Moreover, big money holds a whopping 70.82% of MSFT’s total shares.
Moreover, its Azure platform is significantly impacting the cloud computing arena, seeing a surge of customers transitioning workloads. Azure Arc’s momentum is particularly noteworthy, boasting an astounding 150% year-over-year customer bump. Meanwhile, Microsoft’s expected $68 billion Activision Blizzard (NASDAQ:ATVI) acquisition and hefty cash reserves foreshadow promising growth.
Additionally, the integration of Copilot into Microsoft 365, a generative AI tool with an additional $30 monthly charge, reinforces the firm’s robust pricing strength. Meanwhile, a luminous future lies ahead with TipRanks anticipating an 18% surge to a $390.97 target.
Apple (AAPL)
Apple (NASDAQ:AAPL) showcased impressive strides year-to-date. However, the stock dived recently, unable to leap beyond the $200 threshold, after its disappointing showing in revenue growth in its most recent quarter, nudging it from a lofty $190 to a more grounded $174. As the company evolves from a hardware-centric to a services dynamo, its focus on integrating AI capabilities further solidifies its long-term growth prospects.
Discerning investors aren’t pushing the panic button due to Apple’s longstanding reputation of delivering consistent growth, boasting high margins, and fostering a fiercely loyal customer base. Moreover, Apple’s services revenue impressively jumped 8% to $21.2 billion, marking its evolution from primarily a hardware-focused entity to a burgeoning services company.
Even in a maturing consumer electronics market, Apple’s third-quarter earnings per share stood at $1.26 with 5% year-over-year growth, and coupled with a generous return of over $24 billion to its shareholders, Apple’s financial vigor is unquestionable. Consequently, 229 million of its shares were scooped by institutional investors recently.
On the date of publication, Muslim Farooque 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.
