These 3 Artificial Intelligence Stocks Can Double by the End of 2027
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These 3 Artificial Intelligence Stocks Can Double by the End of 2027
011 mins
Artificial intelligence (AI) stocks have been at the epicenter of the stock market’s growth in recent years. Nvidia initially led the way thanks to the soaring demand for its powerful AI chips, but plenty of new opportunities have emerged since the trend kicked off. Makers of smaller components of chips and other players in AI infrastructure have presented compelling opportunities for investors, and some companies have already translated AI into meaningful growth for their businesses.
Even at this stage of the AI trend, there are some stocks tied to it that look poised to beat the S&P500 by a wide margin. Indeed, I think these three could double by the end of 2027.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
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Iren
Neocloud company Iren (NASDAQ: IREN) has been left behind by the stock market so far in 2026. Its 5% year-to-date return pales in comparison to the performance of peer Nebius, which has almost tripled year to date. They are similar companies in the neocloud industry, but Nebius has signed more long-term computing capacity deals with hyperscalers.
Iren has had less dealmaking activity, and its recent shareholder dilution hasn’t helped matters. However, management is starting to turn its existing contracts into revenue while waiting patiently for opportunities to secure new deals with higher annual recurring revenues per megawatt.
For instance, this month, Iren delivered Horizon 1, a direct-to-chip liquid-cooled AI cloud deployment, to Microsoft. That lease will bring in roughly $500 million in annual recurring revenue for the neocloud. Once the remaining three Horizon sites are delivered, Iren will be looking at almost $2 billion in annual recurring revenue from that hyperscaler alone.
Then, the company will finally have the revenue growth profile of a neocloud play rather than that of a fading crypto miner. Nebius has already made the transition to realizing revenue from some of its contracts, which is where Iren has fallen behind.
Next year, the company will start to realize even more revenue from its customers. And the sponsorship deal it inked with the Golden State Warriors professional basketball team should put it on the map with smaller AI enterprises and developers, which is the customer base Iren would prefer to pursue. The same bullish catalysts that fueled Nebius’ outperformance this year should show up for Iren in 2027 and beyond.
Sandisk
Sandisk (NASDAQ: SNDK) may seem like a strange stock to recommend since it is already up by more than 500% year to date. It’s also up by roughly 4,000% over the past year, so predicting that the NAND flash memory maker will double yet again before the end of 2027 may sound excessive.
However, Sandisk truly has the fundamentals to back up another rally, especially as demand for memory chips remains massive. Elon Musk said that the shortage of memory chips is the biggest bottleneck constraining the pace of the AI build-out, which implies they are a bigger deal than AI processors right now.
Nvidia is still reporting parabolic demand growth for its chips, but Sandisk is simply doing better, by a lot. It delivered 372% year-over-year revenue growth in its fiscal 2026 fourth quarter, with sales up by 51% sequentially. Net income surged by 91% sequentially, producing a 77% net profit margin.
Momentum in the memory space doesn’t look likely to slow down anytime soon. The midpoint of management’s guidance is for $10.55 billion in fiscal 2027 first-quarter revenue, which would be an 18% sequential growth rate. Sandisk’s financial numbers and guidance have been far more impressive than Nvidia’s, and it’s even outpacing memory peer Micron on revenue and net income growth.
Management’s investor day presentation highlighted numerous multiyear sales deals that extend to its fiscal 2030, offering meaningful revenue visibility and high growth for an extended period of time. Its price-to-earnings ratio of 22 serves as the icing on the cake, since that’s a lower valuation than most tech stocks.
Zeta Global
While Iren and Sandisk provide key pieces of AI infrastructure, Zeta Global (NYSE: ZETA) is a software player that’s actually translating its AI investments into revenue. The company operates an AI-powered marketing cloud platform that generates high annual recurring revenue from marketers and businesses that rely on its software.
The company has invested heavily into agentic AI, and those efforts have helped Zeta achieve an impressive track record of outperforming expectations: In Q2, it delivered its 20th consecutive beat-and-raise quarter. Revenue surged by 44% year over year in the second quarter, which prompted management to boost its full-year guidance.
CEO David A. Steinberg told investors that the company is “still in the early stages” of what its platform can do for businesses as AI continues to evolve. Increasing AI adoption was cited as a major reason for the beat-and-raise quarter.
Zeta Global already works with more than half of Fortune 500 companies, and as its platform adds more features, its annual recurring revenue from these customers should continue to grow. The company has a solid revenue foundation to build upon as it gains more market share in the agentic AI industry.
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Marc Guberti has positions in Iren. The Motley Fool has positions in and recommends Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
