AI Beyond Data Centers: 3 Stocks Set to Lead AI's Next Phase
Artificial intelligence (AI) is expected to add between $15 trillion and $23 trillion in annual economic value by 2040. While much of the current investment focus is on companies supplying AI hardware for data centers, the next wave of AI growth will likely come from applications beyond these centers. This shift opens new opportunities in various industries, especially in consumer technology, digital advertising, and financial services.
Three companies stand out as positioned to benefit from AI's broader integration: Apple (NASDAQ: AAPL), The Trade Desk (NASDAQ: TTD), and Robinhood Markets (NASDAQ: HOOD). Each offers a unique angle on AI's potential impact that investors should consider.
Apple: Leveraging a Massive Device Ecosystem
Apple’s ecosystem is a powerful advantage in personal devices. With over 2.35 billion active iOS devices, Apple already has a vast distribution network for AI software. The seamless integration across iPhones, iPads, Macs, Apple Watches, and accessories creates high user retention, making it difficult for customers to switch platforms.
Apple’s initial AI efforts haven't fully met expectations, but the company's strong ecosystem provides room to refine and expand its AI offerings. Rather than searching for customers, Apple’s challenge is to develop AI software that fits into its existing user base. This positions Apple well to capitalize on AI as it becomes more embedded in everyday devices.
Although Apple’s growth rate has slowed compared to its earlier years, its stable dividend and steady expansion make it a solid choice for long-term investors looking to benefit from AI integration in consumer electronics.
The Trade Desk: AI Enhancing Digital Advertising
The Trade Desk operates a platform that helps companies and ad agencies buy targeted digital advertising space. It's transitioning clients to its AI-driven Kokai platform, which improves ad bidding, targeting, and budgeting through advanced AI capabilities.
The digital advertising market is projected to grow at a 14% compound annual growth rate (CAGR) through 2030, reaching approximately $1.5 trillion. The Trade Desk currently captures less than 1% of this market but is showing strong growth with a 25% revenue increase in Q1 2025 compared to the previous year.
Profitability is improving, with net income rising 60% year-over-year in the same period. After a recent sell-off, The Trade Desk's forward price-to-earnings ratio has dropped to around 40, offering investors a more reasonable entry point to participate in AI-driven growth within digital advertising.
Robinhood Markets: Bringing AI to Financial Services
In financial services, AI is starting to transform investment advisory and brokerage offerings. Robinhood is among the fastest-growing brokerages, with revenue up 50% in its most recent quarter and shares rising over 200% in the past year.
Robinhood’s acquisition of Pluto, an AI investment research company, adds data analytics and algorithm-driven insights for customers. These tools analyze market trends and provide personalized portfolio reviews based on individual risk profiles and goals.
Robinhood plans to integrate these features into Cortex, an AI-powered investment tool set to launch soon. Cortex aims to deliver a private wealth management experience for everyday investors, potentially growing Robinhood’s assets under management (currently over $200 billion). Increasing assets would boost revenue and profitability, making Robinhood a key player in AI-driven financial services.
AI will become increasingly important across industries, and these three companies are well-positioned to benefit from its broader adoption beyond data centers.
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