Unlock the AI boom with these 3 top stocks

Unlock the AI boom with these 3 top stocks

Time Stamp: July 3, 2023 12:52 AM
Source Node: 2156462

Artificial intelligence (AI) is no longer just a buzzword. The revolutionary technology underpins a boom in various industries, laying fertile ground for AI stocks. AI remains an innovative force driving transformative changes, from voice and facial recognition to fraud detection and pattern recognition.

A recent report from McKinsey on generative AI presents an eye-opening picture — a potential economic windfall delivering a staggering $4.4 trillion, with three industries alone possibly contributing a whopping $1.2 trillion. It’s clear that the AI boom presents enticing opportunities for savvy investors searching for top AI stocks to enrich their portfolios. Therefore, AI’s profound potential is groundbreaking, making it one of the most exciting investment realms in recent memory.

Microsoft (MSFT)

ChatGPT is a shining beacon in the AI realm, and Microsoft (NASDAQ:MSFT) has turned its largest partner into a prime contender in the arena of AI stocks. At present, AI might just be the biggest edge of the tech titan’s diverse portfolio, but its integration into virtually facet of the company’s operations suggests a flourishing future.

Microsoft invested a cool $1 billion in OpenAI back in 2019, etching Microsoft Azure as OpenAI’s sole cloud provider. Moreover, in January this year, it declared a multiyear, multibillion-dollar investment in OpenAI, underlining its unwavering commitment to AI. Microsoft’s pioneering strides in AI monetization should fortify the firm’s suite of services, from software to cloud security, setting the stage for a massive growth trajectory ahead.

Furthermore, with its status as an indispensable software-as-a-service provider, and an ironclad balance sheet, Microsoft appears ready to weather any storm. These resources equip the tech stalwart to fuel further growth within its AI segment.

Baidu (BIDU)

Baidu (NASDAQ:BIDU) remains a pioneer in China’s AI sphere, battling to regain its stride following early setbacks. Despite the initial disappointments tied to its chatbot releases, Baidu is poised for a spirited resurgence if it can fine-tune its technology to match or even outpace its competition. Notably, the recent demonstrations of its robust Ernie Bot AI platform in simplifying financial statements and generating PowerPoint presentations via voice commands have started turning heads.

With over 120,000 companies in China lining up to test the Ernie Bot, Baidu’s growth prospects will likely accelerate following the evolution of a thriving AI ecosystem. With such firm moves, Baidu is unmistakably an AI stock worth watching. Moreover, BIDU stock is up by double-digits this year, highlighting the power of AI in taking the stock to new heights.

Alphabet (GOOG,GOOGL)

Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) has burst onto the AI scene with renewed vigor, showing its unwavering commitment to leading the AI revolution. Alphabet’s CEO, Sundar Pichai, broadcasted his robust belief in AI as humanity’s most profound technology, marking the tech giant’s intent to leverage this transformative tool.

Significantly, Google’s Bard is just one aspect of the company’s multifaceted AI strategy. The tech titan has also released user-friendly AI toolkits, democratizing the development of generative AI applications. Additionally, after the strategic integration of Labs to Chrome’s desktop, Alphabet appears to have bridged the gap with Microsoft, becoming a major player in the AI realm.

This digital behemoth is set to capitalize on the burgeoning AI boom. Its direct involvement in generative AI, along with potential sales from AI-powered Google ads and breakthroughs in healthcare, underlines Alphabet’s unrivaled resilience and adaptability. Alphabet seems primed to turn heads and evolve as the AI landscape unfolds.

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