Artificial intelligence (AI) is probably the most talked about investment area right now – and for good reason. The AI market is expected to grow at a double-digit compound annual growth rate over the next few years to reach more than $1 trillion by 2030. That means many companies – and those investing in them – could benefit from it.
Additionally, AI is generating excitement because it offers real-world examples of how it could save businesses time and money. For example, it can streamline processes or help a pharmaceutical company develop drugs more quickly. It is therefore easy to understand the importance of this technology. And that means you may want to start investing in AI players in 2024, early in this high-growth story.
Nvidia, the world’s leading maker of AI chips, may seem like an obvious choice, but this high-flying title isn’t the only game in town. In fact, two other AI players are creating fantastic stocks to buy and hold for decades thanks to their investments in AI – and the technology’s potential to increase their profits over time. Let’s check them.
Alphabet
Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), as the parent company of Google, is already the world leader in Internet search, holding more than 85% of the share. And that of the company investment in AI is likely to maintain this. Alphabet is applying AI to search to expand its capabilities and improve search overall.
The company has tested AI throughout the search, answering billions of queries so far. Testing showed increased search usage among people using AI features and greater user satisfaction with search results. Here’s why it’s so important: Alphabet generates most of its revenue from ads on Google search pages, and the more people use search, the more advertisers will come back.
It’s also important to remember that Alphabet has six products that have more than 2 billion monthly users, and these represent opportunities to integrate AI and increase revenue. Finally, Alphabet’s Google Cloud business continues to grow revenue by double digits, and this could continue thanks to its selection of AI products and services. More than 60% of generative AI-funded startups are already Google Cloud customers, Alphabet said during its recent earnings conference call.
And Alphabet also emphasized that it has “clear pathways” to monetize its investment in AI through advertising, cloud and subscriptions. All of this means that AI could have a significant positive impact on Alphabet’s business over time, making now the perfect time to get into this cutting-edge tech stock.
Amazon
Amazon (NASDAQ:AMZN) benefits from AI in two ways. First, its investments in technology help it reduce costs and keep partners happy with its e-commerce business. Second, AI increases Amazon Web Services (AWS) revenue because the company sells AI products and services.
As a global leader in e-commerceAmazon is working to increase its efficiency, and AI supports this by helping…
