Strong Earnings: Just Another Reason to Buy AI Stocks

Stocks to buy

As if we needed another excuse to buy Wall Street’s best performers on Wall Street – AI stocks…  This earnings season has brought with it an abundance of insanely strong quarterly reports. 

Pretty much every major company in the world has reported quarterly numbers over the past month. Most have been smashing estimates. In fact, about 80% of companies that have reported earnings so far have topped expectations. And those earnings are also up by more than 5% versus last year, which is the best earnings growth rate companies have reported since 2022 – before sky-high inflation derailed the post-COVID economic recovery. 

Just as important, most companies are also sounding optimistic about the business environment going forward as well. 

This earnings season has been spectacular. 

What’s driving these fabulous results? Artificial intelligence. 

AI Is Driving Real Results

Across the board, we are seeing companies use AI to drive meaningfully positive financial results. 

Firms like Microsoft (MSFT), Palantir (PLTR), and Alphabet (GOOGL) have shared that their new AI products and services are seeing exceptional demand. And that’s leading to accelerating revenue growth for those firms.  

And fun fact: Companies are reporting that sales rose 4% year-over-year this quarter, the best revenue growth rate in more than a year. 

Not to mention, we’re also hearing that companies like Meta (META), Amazon (AMZN) and Apple (AAPL) are more extensively using AI to unlock efficiencies in day-to-day operations through things like task automation. As a result, profit margins at these firms are soaring. 

And here’s another fun fact for you: Corporate operating profit margins – which have been under pressure due to inflation for the past two-plus years – are expected to soar to all-time highs over the next few quarters. 

In other words, thanks to the AI Boom, companies across America are seeing accelerating revenue growth with expanding profit margins. And of course, sets the stage for explosive profit growth. 

As go profits, so go stocks. 

It should be no surprise, then, that stocks have been roaring back to life over the past few weeks. In fact, the stock market is currently on its biggest three-day winning streak of the year. 

Earnings are rising. That means stocks should, too.

And this growth will be particularly pronounced for AI stocks. 

The Proof Is in the Earnings Results

Consider this. Just last night, AI software provider Palantir reported that, due to supercharged demand for its newly launched Artificial Intelligence Platform (AIP), its revenues rose more than 20% in this latest quarter. Operating profits jumped by more than 80%. 

On the same night, AI robotics solutions developer Symbotic (SYM) reported almost 60% revenue growth on the back of surging demand for its novel AI-powered warehouse robotics system. EBITDA jumped almost 300%. 

These companies are on fire right now. And so are their stocks. 

Over the past year or so, Palantir stock has jumped from $6 to over $20. Symbotic stock has climbed from $10 to almost $50. 

These up-and-coming AI stocks are making their investors some real money. 

The Final Word on Quarterly Earnings

This recent batch of quarterly earnings reports adds a new level of confirmation that the AI Boom is the real deal. 

Companies are investing everything they have to build out AI products and services. This relentless AI spending frenzy will create huge demand for the companies that create the best of the best.

Palantir is one such company. Symbotic is another. 

But they are far from alone. 

There are dozens upon dozens of up-and-coming AI stocks that should continue to win big as the AI Boom gains momentum over the coming months and years. 

If you’re serious about making money on Wall Street, you’ve got to be invested in those AI stocks – else, you’ll risk getting left behind. 

We’ve already scored some huge winners in the Age of AI, but we think the best is yet to come. 

Learn about our top stocks to buy for this boom.  

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