Investing in artificial intelligence (AI) is a great way to reap long-term rewards without the risk of speculative investments. Two leading companies in the AI space are Amazon (AMZN 0.34%) and Microsoft (MSFT 0.33%). These industry giants have made significant investments in AI, which has yielded more than 700% returns over the past decade.
Amazon has leveraged AI to revolutionize its business model. Its AWS platform is a major provider of AI services, enabling customers to automate workflows, manage inventory, and power speech recognition and chatbots. AI has also aided Amazon’s supply chain system, helping the giant to predict demand trends while powering its voice assistant Alexa and warehouse robotics. As a result, Amazon has grown into an expansive company, generating $524 billion in trailing-12-month revenue.
Microsoft, too, has made substantial investments in AI, making OpenAI’s ChatGPT an integral part of its computing offering. The AI-powered text generator has been integrated into Word, Office, PowerPoint, and Outlook. Microsoft has also unveiled a new version of the Bing search engine and Edge browser that harness AI to provide answers to even complicated questions. The company’s shares have surged 28% year-to-date and there is potential for further growth, as users of its Word and Office products could see big improvements in their workflows.
It is difficult to speculate the performance of any stock market investment. However, Amazon and Microsoft are two companies that are well-positioned to benefit from their investments in AI. They are two established powerhouses that are finding smart ways to use AI to further their businesses. As a consequence, they could present very rewarding opportunities for investors.
