2 Artificial Intelligence (AI) Stocks Poised to Join the $1 Trillion Club

AI revolution fuels next wave of trillion-dollar titans—these two contenders are rewriting the rulebook.

The $1 Trillion Threshold: No Longer Just FAANG Territory

Forget chasing yesterday's giants. The real action's happening where AI meets scalable infrastructure—where algorithms don't just analyze data but create entirely new revenue streams. These aren't your grandfather's blue chips; they're architecture-first players building the digital nervous system of tomorrow's economy.

First Mover: The Infrastructure Architect

One's quietly dominating the computational backbone that every AI application runs on—cloud infrastructure so sticky that clients would rather rewrite their entire stack than switch providers. Their secret? Vertical integration that lets them control costs while competitors bleed cash on third-party APIs.

Dark Horse: The Vertical AI Specialist

The other bypasses the generic AI arms race entirely—focusing on one vertical so lucrative that their margins make SaaS companies look like grocery stores. They're not selling shovels; they're mining gold with proprietary data moats that deepen with every query.

Wall Street's still pricing them like regular tech stocks—as if AI adoption is linear rather than exponential. Meanwhile, these two are executing the kind of land grab that makes dot-com era growth look sluggish. Because in the race to trillion-dollar valuations, the winners won't be who you expect—they'll be who built the track while everyone else was still betting on horses.

Image source: Getty Images.

1. Palantir Technologies

More than 800 companies have chosen(PLTR 4.14%) to transform their business operations with AI. Businesses can upload data on Palantir's platforms, and it basically shows them how to be more efficient, grow their revenue, and become more profitable. It is working magic for businesses and the U.S. military, which trusts Palantir to keep top-secret information secure about the U.S. and its allies. Despite its already high market cap of $400 billion, Palantir's unique value proposition and stellar profitability has all the makings of a $1 trillion business.

Palantir is not just slapping a large language model on a company's data to make it easy to search information. It pulls together data from different sources within a company, which creates a framework for understanding how the company operates. Palantir is essentially building a digital copy of a company's operations that can detect problems and solve those problems instantly.

Palantir's financials suggest there is no replacement for the value it provides. It reported accelerating revenue growth over the last year. In the second quarter, revenue grew 48% year over year, compared to 27% in the year-ago quarter.

Moreover, its net income margin was Stellar at 33% in Q2, with an adjusted free cash flow margin of 57%. It's not common for a small software company in the early stages of growth to be reporting margins like.

These margins are being driven by high prices that Palantir charges customers. For example, it recently secured a $10 billion contract with the U.S. Army for the next decade. Organizations are willing to pay up for Palantir's software because the savings realized are that big. Palantir is saving enterprises millions, even hundreds of millions in costs in some cases, providing an attractive return on investment that is driving the company's growth.

Palantir stock is expensive, trading at high multiples of sales and earnings. But this is a unique software company with a huge opportunity ahead. CEO Alex Karp is aiming to grow revenue by 10x over time, which WOULD bring annual revenue to more than $40 billion from this year's analyst estimate of $4.1 billion. Based on its current margins, that could equate to $20 billion in annual free cash flow over the long term. Applying a high-growth multiple of 50 to that would put the stock's market cap at $1 trillion.

2. Advanced Micro Devices

For AI to keep advancing and transform how people work and communicate, it needs more powerful chips.has been the biggest winner so far, but investors shouldn't overlook(AMD 1.91%). It is the second-leading supplier of graphics processing units (GPUs), and it could be well positioned to meet growing demand in edge computing and AI inferencing that could send the stock from its current $250 billion market cap to $1 trillion.

As AI proliferates across the economy, people will be able to use powerful AI applications and processing on their devices, which makes edge computing a large opportunity for AMD. The company offers a range of high-performance and energy-efficient chips that are aimed at running AI devices and PCs, positioning it to benefit from a booming market estimated to be worth $327 billion by 2033, according to Grand View Research.

Investors were disappointed by the company's Q2 data center growth of 14% year over year, but management expects stronger demand once it launches its Instinct MI350 series of GPUs. As it continues to bring new solutions to the data center market, AMD's data center business should accelerate.

AMD's chips are clearly addressing needs in the AI market. It announced a partnership with Saudi Arabia's Humain to build AI infrastructure using AMD's GPUs and software. Meanwhile,is building a massive AI compute cluster using multiple AMD chips. AMD says it is also working with governments globally to build sovereign AI infrastructure.

Analysts expect AMD's earnings to grow at an annualized rate of 30% over the next several years. Against those prospects, the stock trades at a reasonable forward price-to-earnings multiple of 40. There is enough earnings growth here to potentially triple the stock in five years, putting it easily within striking distance of reaching $1 trillion within the next decade.