With the adoption of AI rapidly increasing, investors have been presented with a unique opportunity to potentially capitalize on the technology with the right investments. Nvidia (NVDA -0.49%) and Alphabet (GOOG -1.34%) (GOOGL -1.35%) are two AI stocks that have the potential to generate considerable returns in the long run.
Nvidia is poised to make the most of this situation due to its GPU chips being used in data centers and servers for AI training and inferencing. Its A100 and H100 data center GPUs are sought after because of how they are able to process massive amounts of data. Nvidia will also be releasing its Grace server processors, which are 30% more efficient and 70% more power efficient than rival processors, giving their customers an advantage in terms of performance and speed.
In the meantime, Alphabet is focusing on utilizing AI in its existing services, such as its Google Search engine and Google Workspace. AI has the potential to strongly influence the next generation of search engine into an even larger part of the market. Generative AI will be further implemented into Google Search, which could help Alphabet retain its dominant market share. AI is also being used to enhance its Google Workspace productivity tools, making features such as creating slides, refining text, and creating plans easier.
Nvidia is an ideal stock for investors looking for a great AI play with strong long-term potential. It has a dominant role in AI chip manufacturing and is expected to benefit heavily from increased spending in the field. For those looking for a more diversified option, Alphabet is the stock to go after due to its position on the Google Search engine and Google Workspace.
