IBM’s Quantum System Two and Alphabet’s Bard AI: Top AI Stocks to Watch in 2024
The integration of artificial intelligence (AI) into the technology industry has become a reality, presenting new opportunities for investors. Unlike physical products, AI software focuses on functionality rather than tangible presentation. As the global software market is projected to reach $353.5 billion in 2024, with a compound annual growth rate (CAGR) of 4.07%, the applications of AI are expected to continue growing.
With this market opening, many tech companies are eager to ride the AI wave. Here are three AI stocks to watch in 2024:
1. IBM (NASDAQ:IBM):
IBM has been a longstanding player in the industry, and its AI project, Watson, is a well-known name. Despite not being as popular as models like ChatGPT, IBM recently announced the Quantum System Two computer, which could give their AI a significant advantage.
The modular design of IBM Quantum System Two allows scientists to configure the system according to their specific needs. Quantum computers, like this one, are reported to be 158 million times faster than the fastest supercomputers available. By leveraging the power of quantum supercomputers, training the Watson AI could result in capabilities far surpassing the competition.
IBM’s dedication to cutting-edge computer research positions Watson at the forefront of AI implementation. The announcement of Quantum System Two, along with a healthy profit margin in 2023, makes IBM a stock to watch in the AI realm.
2. Microsoft (NASDAQ:MSFT):
Microsoft dominates the software market, with over 70% of desktop computers worldwide running Windows. This puts Microsoft in a unique position to develop its AI assistant, Copilot.
Unlike other web-based AI chatbots, Microsoft Copilot is an enterprise software enhancement tool. Designed to identify inefficiencies in daily work processes, it integrates seamlessly with the Microsoft 365 suite, providing enhanced business functionality.
With the largest software user base globally, Microsoft has a competitive edge in developing AI. The company has experienced a 10.8% increase in share value in the last six months and has the potential to become the most valuable company in the world, making it a strong AI stock to consider.
3. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL):
Alphabet, the parent company of Google, has also made significant strides in AI with its Bard model. Since its release in March 2023, Alphabet has continued to invest in upgrades to enhance its capabilities.
The release of Gemini Pro in late 2023 further narrowed the gap between Bard and ChatGPT. Now, Alphabet is set to introduce Gemini Ultra, which could position them as the frontrunner in generative AI technology.
Alphabet’s stable stock performance, coupled with its substantial investment in AI, makes it an appealing option for investors. Additionally, Google Chrome, which is used by over 60% of internet users, provides Alphabet with a significant advantage in terms of data collection for training its Bard AI. With a projected revenue of $340.61 billion in 2024, Alphabet appears to be a strong contender in the AI stock race.
In conclusion, as AI continues to expand its influence across industries, investors looking for promising opportunities should keep a close eye on IBM, Microsoft, and Alphabet. With each company offering unique advantages and advancements in AI technology, these stocks have the potential to deliver significant returns in 2024.
