The entertainment industry is changing as technology continues to shape the way people consume content. Artificial intelligence, or AI, is quickly becoming a key player in this space. In fact, the use of AI has the potential to bring about a future of creative possibilities. With this in mind, here are three AI stocks that investors should keep an eye on as technology shapes the future of entertainment.
First up is Adobe Systems, which has been noted as an under-the-radar AI stock. In recent weeks, shares have surged more than 50% due to strong earnings and solid guidance. Analysts note that the firm’s Firefly AI tool, which is used to edit photos, could help boost average revenue per user and increase engagement.
Next on the list is Nvidia, which has taken the AI world by storm. The company has experienced explosive growth, surging more than 300% off its lows. While shares trade at a high multiple, Nvidia’s products already help power game-makers, animators, and other entertainment creators. In addition, the company recently provided stunning guidance for the second quarter.
Finally, Disney, the king of entertainment, is also getting in on the AI game. While the company is not solely an AI stock, Disney has already started using artificial intelligence in some areas of its business. For example, the My Disney Experience app uses AI to provide personalized recommendations to visitors based on their interests and past behavior. Disney has also incorporated AI into its new Pixar film, Elemental, to reduce production time and cost.
In conclusion, as AI continues to shape the future of entertainment, these three stocks are worth watching. While some have already experienced significant growth, the potential for further expansion is clear. By embracing AI, these companies are tapping into a future filled with endless creative possibilities.
