2 Millionaire-Maker Artificial Intelligence (AI) Stocks to Buy Now

Core Insights - Nvidia is recognized as a leading stock in the AI sector, with a market cap nearing $2.6 trillion, significantly benefiting investors [1] - There are other smaller stocks in the AI space, such as Zscaler and DigitalOcean, that present substantial growth potential [2] Company Analysis: Zscaler - Zscaler is a cybersecurity firm specializing in zero trust technology, which assumes all network logins are potential threats [3] - The company’s zero-trust technology secures generative AI workloads and utilizes AI to proactively identify security threats [4] - In the first half of fiscal 2024, Zscaler reported revenue of$1.0 billion, a 38% increase year-over-year, while operating expenses rose by 24%, leading to a reduced net loss of $62 million compared to a loss of$126 million in the same period last year [5] - The stock has appreciated approximately 35% over the past year, and despite a P/S ratio of 14, it is near record lows, suggesting a potential buying opportunity [6] Company Analysis: DigitalOcean - DigitalOcean is a cloud infrastructure provider with a market cap of $3.4 billion, targeting small and medium-sized enterprises [7] - The company differentiates itself by providing transparent pricing and a supportive community, which aids customers in utilizing its cloud platform [8] - DigitalOcean acquired Paperspace to enhance its AI capabilities and has appointed a new CEO, Paddy Srinivasan, who has a strong background in tech leadership [9] - In Q1, DigitalOcean reported revenue of$185 million, an 11% increase year-over-year, and achieved a net income of $14 million, a turnaround from a$16 million loss in the same quarter last year [10] - The company has a P/S ratio of 5 and a forward P/E ratio of 23, indicating potential for stock price growth given its improved financial condition and large addressable market estimated at $213 billion by 2027 [11][12]