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Many investors are keen to participate in the ongoing industry transformations by artificial intelligence (AI). Understandably, astute investors are searching for stocks that would benefit from artificial intelligence (AI), which is expected to add an astounding $15.7 trillion to the global economy by 2030. This blog discusses some well-known AI stocks that every investor should be aware of.
These days, NVIDIA is inextricably tied to artificial intelligence. This strong link can be attributed to NVIDIA's cutting-edge graphics processing units. These GPUs provide the necessary power for many AI applications. They work mainly in prominent fields like data analysis, deep learning, and machine learning. Moreover, they also work in data centres and several games. NVIDIA has also seen a surge in sales and more demand in the previous year. Sales hit $13.51 billion by the end of the second quarter of 2024. This expansion is mostly driven by rising demand for AI products.
Google’s parent company, Alphabet, is not a new name! They are a leader in the field of AI. Waymo, Alphabet's subsidiary, specializes in autonomous driving technology. Waymo's technological innovations have significantly impacted both cloud computing and search engines. Their creative work has expedited the development of self-driving vehicles. As of 2023, Alphabet had committed about $30 billion to AI initiatives. This large lump sum investment amount has shown the dedication to tech innovation and growth today. Moreover, AI is expected to increase Google's advertising ROI by 15% annually. This estimate also gives us an estimate of profitability.
Microsoft has earned headlines for its significant advances in AI with Azure Cloud. Microsoft hopes to help businesses increase productivity and innovation by incorporating AI tools in their products. Microsoft just released its quarterly reports. Azure's revenue has surged by 40% because of AI capabilities. This is a great development, which has also shown a great amount of demand for cloud services. Microsoft's exceptional performance is quite notable and is expected to show more returns in the future.
Recently, Amazon has also shown interest in and invested in AI. Today, AWS, a part of Amazon Web Services, extensively uses artificial intelligence. By the second quarter of 2024, most of AW's $22.3 billion earnings came from AI services.
Palantir focuses on AI-powered data analysis solutions. AI technology and its applications enable several organizations to collect data rapidly. Palantir's return on investment (ROI) increased by an astounding 26% in 2024 compared to the year before. The company's government contracts and business alliances were the main drivers of its growth.
Businesses that invest in AI are seeing significant earnings and returns. Technology is being incorporated into more businesses as it develops. This expansion potential keeps growing. The five stocks that follow highlight the bright future of the AI industry.
Each company has unique opportunities and challenges. Investors should consider their risk tolerance before making any investments. It’s essential to make well-informed decisions in this dynamic field. Thorough research is necessary to optimize potential profits. This approach helps in minimizing risks associated with investments.
