2 AI Stocks That Could 10X Your Money

Key Points

• Artificial Intelligence, or AI, could be the most transformative technology of modern times.

• There will likely be some stocks that are big winners for investors, but finding them is a challenge.

• Roblox and Lemonade are two stocks that have 10x potential if they can capitalize on their opportunities.

• 10 stocks we like better than Roblox ›

Artificial intelligence (AI) is the most transformative technology of our time, and not surprisingly, it could also be one of the best investment opportunities. There will likely be some big winners from the AI revolution, but finding them can be a challenge.

With that in mind, there are many businesses that could have 10x return potential if they can successfully capitalize on their market opportunities. And while there is a lot of execution risk involved with both businesses, here are two stocks that could 10x your money. They have risk-reward dynamics that make a lot of sense for risk-tolerant investors.

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A winning model with lots of room to grow

Roblox (NYSE: RBLX) has done a great job of building its ecosystem and expanding its target audience, and this is certainly reflected in the latest results. In the second quarter of 2025, Roblox reported 111.8 million daily active users, a stellar 41% year-over-year growth rate and an even more impressive growth in user engagement. Bookings (the best indicator of Roblox's revenue) soared by 51% year over year thanks to a new, all-time record in paying users.

Image source: Getty Images.

The Roblox platform has historically been the gaming method of choice for the youngest players, but the company is doing an excellent job of becoming more of an all-ages ecosystem. In fact, the 13-and-older demographic produced by far the strongest growth in terms of both users and engagement.

Roblox has rolled out many innovative ways for creators to monetize their content and continues to do so. With metaverse technology still in its relative infancy and tons of ways Roblox and its creators could leverage AI, the platform could still have lots of exciting (and lucrative) developments ahead.

Roblox has a stated goal of reaching 1 billion active users over time, so there could be plenty of upside potential ahead. With an estimated 3.3 billion active video gamers worldwide, this is less of a stretch than it may sound. If Roblox can ultimately get close to this goal and increase monetization over time, 10x returns aren't out of the question.

A true disruptor with a massive market opportunity

Lemonade (NYSE: LMND) aims to make insurance better through the use of AI to improve the customer experience from buying insurance all the way through the claims process and everything in between.

The company's results show just how strong its products are. Lemonade reached 1 million customers in just a few years (quicker than any of the major legacy insurers did) and now has 2.7 million customers altogether. In-force premium grew 29% year over year in the most recent quarter, an acceleration over the prior growth rate.

Not only has Lemonade grown its business impressively, but it is making excellent progress toward profitability. On a trailing-12-month basis, Lemonade's gross loss ratio has steadily improved from 88% two years ago to 70% in the latest quarter, significantly better than the company's 75% target. Lemonade is now steadily profitable in terms of adjusted free cash flow, and management believes it will reach adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profitability by the end of next year. And with its car insurance product just ramping up, there could be much more premium growth to come.

Lemonade's achievements -- such as nearly $1.1 billion in in-force premiums and 2.7 million customers -- might sound impressive (and they are), but it's important to realize that this is still a rather small insurance company. For context, Lemonade had about $113 million in net earned premium in the latest quarter. Auto insurance giant Progressive (NYSE: PGR) had about $7 billion in the month of July alone. So, to say that Lemonade could get much larger if its auto insurance business takes off would be an understatement.

Could these two stocks actually produce 10X returns?

Both companies clearly have the opportunity to grow tenfold over the coming years. Roblox could grow its user base by 700% and still not reach its long-term billion-user goal, and Lemonade is still a small insurance company with a share of far less than 1% of its addressable market opportunity. Of course, there's a lot that would need to go well for both companies to actually achieve 10x returns, and these are not low-risk stocks by any definition. But with strong recent results, improving fundamentals, and big opportunities, the risk-reward profiles of these investments look strong for long-term investors with high risk tolerance.

Should you invest $1,000 in Roblox right now?

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Matt Frankel has positions in Lemonade and Roblox. The Motley Fool has positions in and recommends Lemonade, Progressive, and Roblox. The Motley Fool has a disclosure policy.