While the debate over the future of <a href="https://myappsplus.com/3-artificial-intelligence-ai-stocks-id-buy-without-hesitation-in-a-market-crash/" title="3 Artificial Intelligence (AI) Stocks I’d Buy Without Hesitation in a Market Crash”>artificial intelligence (AI) infrastructure spending continues to rage on Wall Street, many corporations aren’t just saying they will spend more on AI; they are backing up their words with action. So far this earnings season, we have seen that many leaders in the field are still pouring fortunes into hopes of capitalizing on what they see as a transformative opportunity. This provides strong evidence that the ongoing AI revolution isn’t over yet, and there is still time to invest in stocks that could ride this tailwind over the long run. Here are four great examples to consider: Nvidia(NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Advanced Micro Devices (NASDAQ:AMD), and Broadcom (NASDAQ:AVGO).
Missed AI’s “Act 1”? Act 2 Could Be 16x Bigger.Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout.Continue »
1. Nvidia
Nvidia’s indispensable role in the industry has made it one of the biggest winners of the AI revolution so far. In my view, that’s likely to remain the case over the long run. Despite increased competition in the GPU (graphics processing unit) market, the company has maintained a runaway lead.
This has a lot to do with the company’s wide moat, thanks to its CUDA ecosystem, which creates high switching costs. Demand for GPUs may not be quite as impressive moving forward as it has been in recent years, but Nvidia has expanded beyond its core market.
The company’s existing relationships with many corporations that continue to rely on its GPUs can enable it to offer these clients other hardware and services that complement — and work best with — its GPUs for training, deploying, and running AI models. That puts Nvidia in a good position to ride the AI tailwind.
2. Microsoft
Microsoft is proving the doubters wrong. Some investors feared that AI would make its services obsolete, since the technology has reduced software development costs. But Microsoft has adapted. Its cloud business is booming, in part thanks to its library of AI services. It has also integrated AI across its productivity suite.
Meanwhile, the company boasts a massive and rapidly growing cloud backlog. These are all signs that Microsoft may continue cashing in on AI, at least over the next few years. And beyond that, the company’s ability to deliver consistent revenue and earnings, strong cash position, and innovative capabilities grant it the opportunity to tap into an AI market that could continue to expand over the long run.
