2 Stocks That Could Quietly Become Big Winners in the Artificial Intelligence (AI) Revolution

Several artificial intelligence (AI) companies in the tech industry are attracting most of investors' attention, and with good reason. Some of these businesses are reporting phenomenal financial results and could continue doing so for a while. However, companies in other sectors are also capitalizing on AI, and several are worth investing in for the long term. Let's consider two examples: Shopify (NASDAQ:SHOP) and Dexcom (NASDAQ:DXCM).

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1. Shopify

Many thought that AI would render some of Shopify's services obsolete. However, the company is proving otherwise. The e-commerce specialist's second-quarter results were excellent. Its revenue of $3.6 billion grew 34% year over year and exceeded analyst estimates, while its net income, excluding the impact of equity investments, grew 30% to $439 million.

Several of Shopify's other metrics were strong, including guidance, and the company attributed its performance in part to its AI-related efforts. Shopify has launched various AI tools, and during the second quarter, these tools helped the company drive more traffic to merchants' stores, improve product discovery, boost conversion rates and merchant productivity, among other perks.

Yet, AI-driven shopping is still in the early innings. As the company's president, Harley Finkelstein, noted, growth has been impressive, but agent-driven commerce still accounts for a relatively small part of the company's gross merchandise volume. That grants the company a massive long-term opportunity as it continues to tap into this market.

Note that as of the second quarter, e-commerce accounted for less than 20% of total retail sales in the U.S. There is plenty of room for growth, and Shopify is in an excellent position to benefit. It is already showing the value of its AI tools to merchants, and it arguably boasts a competitive advantage due to switching costs and network effects.

AI won't mean the end of Shopify; quite the opposite, in my view. The technology could meaningfully improve the company's revenue and earnings in the long run, potentially helping it deliver above-average returns.

2. Dexcom

Dexcom is a medical device specialist that sells continuous glucose monitoring (CGM) devices, which help patients with diabetes track their blood glucose levels. Dexcom is one of the leaders in this niche, and increased adoption of CGM technology -- driven by its track record of better health outcomes and expanding insurance coverage -- has helped the company generate consistent revenue and earnings.

Dexcom is now using AI to improve its devices. The company has launched integrated AI tools to help CGM users analyze data, provide personalized health insights, and understand how factors such as diet and sleep affect their blood glucose levels. That's not all. Dexcom has launched integrated AI tools that help with food tracking to help its users improve diabetes management.

These tools could make Dexcom's devices more valuable and expand its installed base, leading to stronger financial results. And it's worth pointing out that the company still has a large addressable market. Dexcom's main competitor, Abbott Laboratories (NYSE:ABT), estimates that 70 million to 80 million of the half-billion people with diabetes worldwide could benefit from CGM technology.

Current penetration is only about 10-12 million people. Many eligible patients aren't in geographies where Dexcom operates, but the company has expanded its addressable market in the past by entering new regions.

It could also continue to innovate and launch increasingly more sophisticated CGM products with increasingly better AI tools. Dexcom is obviously not your typical AI stock, and the company's prospects in the large CGM market look bright independently of AI. But the technology can significantly improve Dexcom's products and help it attract more patients. That's how Dexcom could benefit from AI over the long run and deliver competitive returns along the way.

Prosper Junior Bakiny has positions in Shopify. The Motley Fool has positions in and recommends Abbott Laboratories and Shopify. The Motley Fool recommends DexCom and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy.