The global acceptance of artificial intelligence is also boosting investor’s interest in investing in more AI-based stocks. Other AI-developing companies are now promoting their new artificial intelligence products and their future development plans. It is now difficult for investors to identify the right AI stock for them, which will generate good returns from companies like Microsoft (MSFT) and NVIDIA (NVDA). While some of the companies, including Google Alphabet, which is also a parent company of Google, are generating artificial intelligence, this is both problematic and a source of opportunity.
This tremendous growth of generative artificial intelligence is a question for many economists: will it be a game-changer moment in terms of productivity growth from artificial intelligence? It’s high time to get concerned about artificial intelligence`s capabilities to create texts, images, sounds, and videos just with one click, and it may be a problem for the privacy of an individual.
In many cases, companies using AI-based stocks, which use artificial intelligence to enhance their products, achieve successive growth in this competitive market.
As per the current market condition, the most prominent stocks to buy or invest in are those from technological-based companies, chipmakers, software firms, and cloud computing service providers.
Microsoft is one of the top investors in OpenAI, which is a start-up company and one of the biggest generative artificial intelligence-based platforms currently available. As per reports, on June 9, 2024, due to the high pressure of regulatory actions, Microsoft is now bound to withdraw its rights from OpenAI`s non-voting seat. Apple is also not ready to take a board seat as a non-voting member at Open AI.
As per reports, on July 23rd of this year, Google is ready to disclose its revenues, which it generated in the second quarter of the year. While analysts’ primary intention is to hear the management`s point of view on the deployment of artificial intelligence overviews, which is Google’s one of the advanced AI tools that generate overviews of search results and provides users with a tool that can simplify complex to complex data and solve their queries using advanced generative AI-based technology.
To make 1 billion people their users by the end of this year, Google has already started their AI overviews, deploying campaigns since the middle of May with features like search query options and conversational summaries.
Analytic Software Manufacture Company Palantir Limited has seen an outstanding rise in their stocks by around 59 per cent to date of the year. While other semiconductor-making companies have performed better than other software-based companies, it remains the top artificial intelligence stock.
As of the current market status, the NVIDIA stock is showing a volatile nature, and this will be a caution for investors to make technical analysis and to be aware of the potential risk. As a leading AI stock, NVIDIA`s shares have seen a growth of 160 per cent to date this year in comparison to last year’s 239 per cent gains.
Data centers can expect that this current quarter is the time when NVIDIA`s new artificial intelligence chip product, Blackwell, will be available for them. While other advanced AI chips from NVIDIA`s plans, namely RUBEN and VERA, are expected to be available for use by the year 2026, other chipmakers such as Broadcom, Advanced Micro Devices, Qualcomm, ARM, and Marvel Technologies can be game changers in the upcoming years.
Due to the high demand for advanced artificial intelligence-based chips, the Taiwan Semiconductor Company settled at 20.83 U.S. dollars during the second quarter of the year, at a growth rate of 40%.
For the expansion of data centre capacity in cloud computing, top players like Amazon, Microsoft, and Google are now investing in large numbers. But still, investors are confused about their investment revenues after the Goldman Sachs report. While data centre equipment makers Arista Networks witnessed a gain of 53 per cent during this year till now and declared a buyback amount of 1.2 billion U.S. dollars.
A survey conducted by William Blair`s analyst, Mr Maggie Nolan, found that around 29 per cent of companies are ready to partner with cloud-based companies to eliminate artificial intelligence projects from the market, while only 17 per cent of companies such as Accenture are partnering with IT companies, and Open AI is one of the major contributors to these types of projects. There is a need for more nuclear as the demand for AI infrastructure is at its peak, resulting in a high consumption of electricity.
During the worldwide developer’s conference, Apple introduced a common mixture of features from Open AI, Siri, and iOS 18. This step creates a total analysis of whether this feature will be introduced in the iPhone 16 and Pro models of the iPhone 15 by this year. Apple`s stocks have seen a growth of 20% till now this year, and analysts are now concerned about Asia`s production unit growth as a result of iPhone 16 production. Google will be ready with its new Pixel 9 series smartphone with advanced AI-less technology by August 9.
Salesforce`s weak status has boosted concerns for software companies about whether they will make a profit from generative AI or not. They are now monetizing their AI-related offerings.
Adobe Systems made a comeback in the second quarter of this year with AI-based revenue, which they have yet to disclose. Analysts are now suggesting that most software companies might not be able to witness generative AI-based monetization by 2025.
The current AI market is dynamic and in a growing state, while companies may see an opportunity to accept the monetization of AI technologies.
Link: https://www.investors.com/news/technology/artificial-intelligence-stocks/
