The artificial intelligence (AI) revolution is upon us. You can see it in every headline, every earnings call, and every analyst prediction. It’s powering a historic market surge, with companies like Nvidia up an astonishing 171% in just the last year.
But here’s the thing – most investors are still chasing the “first wave” of AI stocks. They’re throwing their money at chipmakers, software giants, and nascent AI applications. That’s fine, but it’s old news. The real fortunes in this megatrend won't be made by riding the coattails of the first generation.
Savvy investors will start looking at the “next-gen” of AI: companies creatively applying this technology to disrupt and reshape entire industries. They’re not the companies racing to produce the most powerful AI chips. Instead, these are the innovators applying the power of AI right now to their businesses and industries.
Here are five “next-gen” AI stocks set to explode higher:
AMD (AMD)
AMD, a stalwart in the semiconductor industry, has quietly carved out a unique position in the world of AI – surgical robotics. They aren’t just a chipmaker. They’re a key player in the burgeoning robotics and automation revolution sweeping the healthcare industry.
You may not realize this, but surgical robotics is exploding. The AI-based surgical robot market is projected to grow at a 16.2% annual growth rate, reaching $25 billion by 2032!
And AMD is at the forefront. As our resident AI expert Eric Fry has been telling his readers, AMD has a “wide portfolio of processors… used in industrial automation, automotive, gaming, servers and data centers, and increasingly in healthcare.”
What’s more, AMD has been working with Intuitive Surgical (ISRG) on its da Vinci robotic surgery system, already used in thousands of hospitals around the world.
[In his latest Smart Money article](https://investorplace.com/smartmoney/2024/10/amd-products-are-in-use-now/), Fry says, “AMD’s Xilinx unit – in collaboration with Intuitive Surgical (ISRG) – designed the second-generation da Vinci system… So, through its robotics efforts, AMD is part of the reason that surgeons… consider themselves better in the operating room.”This is a perfect example of what I’m talking about. AMD isn’t just selling a product. They are enabling other companies to leverage the power of AI to reshape an industry, save lives, and unlock explosive growth.
SMCI (SMCI)
Super Micro Computers, a company I first recommended to you back in October 2022, has seen its stock price swing wildly over the last two years.
But despite these ups and downs, SMCI remains a powerful player in the AI boom. They’re not just manufacturing servers. They’re providing essential “liquid cooling” systems to AI data centers – keeping those powerful computers from overheating and unlocking the potential for even more AI growth.
[As I told Money and Markets readers last week](https://moneyandmarkets.com/from-edge-computing-to-ai-sleeper-play/), “Super Micro recently… announced it was shipping more than 100,000 of its graphic processing units per quarter with its liquid cooling systems to some of the largest AI factories in the world.”Think about it. As AI applications become more robust and data centers more powerful, cooling these systems becomes increasingly critical. That puts SMCI in an ideal position. They’re not just a chipmaker. They're an enabling force.
Louis Navellier’s “Next-Gen” AI Picks
My colleague Louis Navellier is arguably one of the most bullish AI gurus in the world. And he's not just talking about the obvious players. He’s looking at [the Real AI Boom](https://secure.investorplace.com/?cid=MKT815759&eid=MKT816845&step=start&plcid=PLC216970).
[In his latest Market 360 article, Louis urges investors](https://investorplace.com/market360/2024/10/the-next-financial-mania-is-beginning-heres-how-to-profit/) to “forget about ChatGPT writing your emails or AI making pretty pictures.” Instead, he says, “Let’s talk about something that’s really going change your life – literally.”What’s more, Louis believes the “next generation of AI I see coming could be your last chance to make a small investment in the right breakthrough stocks and still see huge potential profits.”
His proprietary AI stock grading system has identified [six companies poised to disrupt their industries with AI](https://secure.investorplace.com/?cid=MKT815759&eid=MKT816845&step=start&plcid=PLC216970). One of those companies is revolutionizing insurance underwriting… another is transforming the travel industry.
What Should You Do Now?
The AI revolution is gaining momentum. The companies I’ve highlighted are just a small taste of the emerging “next-gen” of AI. These aren’t just technology companies. They’re companies creatively applying AI to unlock new growth and profits.
Download [our FREE report on the “Real AI Boom”](https://secure.investorplace.com/?cid=MKT815759&eid=MKT816845&step=start&plcid=PLC216970)** to discover more companies poised to ride this megatrend higher.
This is a once-in-a-generation opportunity. Those who position themselves correctly will make fortunes.
Don’t miss out.
And tomorrow, we’ll discuss three stocks that have experienced a classic Wall Street overreaction. These are companies with strong fundamentals, unjustly punished by panicked investors. These “oversold” opportunities are waiting for you – get ready to pounce.
