The demand for Artificial Intelligence (AI) stocks is on the rise as the technology continues to develop and expand across various industries. Major tech giants are investing heavily in AI and are worth considering for long-term investment opportunities. Semiconductor manufacturers like Nvidia are leading the way in AI-related demand, with their latest guidance predicting sales growth of almost 70%. Nvidia’s advanced chips are higher margin than their peers, and the company is building out a small software arm that offers pretrained chips. With the sky-high valuation of Nvidia shares reflecting investors’ optimism, they are worth considering for those able to ride out some near-term volatility.
Microsoft is another AI stock to watch with its strategic purchase of a major stake in OpenAI leading the way in the race to monetize AI. Artificial intelligence is making inroads into just about everything Microsoft does, from its software to cloud-based security, adding significantly to the group’s existing portfolio of services. With a solid balance sheet and a history of navigating new technology successfully, Microsoft is worth considering for investors taking a long-term view towards AI.
Amazon, as the largest cloud computing player, is poised to leverage AI in the years ahead. Despite not getting as much press as Microsoft, Amazon has its own large language models thanks to some smaller startups, and has developed its own in-house machine learning models. With a wealth of customer data at its disposal, Amazon is well-equipped to implement AI into its business operations, from logistics coordination to better understanding customer buying patterns.
As AI infiltrates every aspect of our lives, the demand for AI-backed businesses and technologies will continue to increase. These three tech giants are a top choice for investors looking to invest in the future of AI. Despite the high valuations of their shares, the potential for growth in the AI industry justifies the price. Investors should be willing to ride out some volatility in the short-term to reap the rewards of AI in the long-term.
