Forget Amazon: What are the 2 artificial intelligence (AI) stocks to buy now?

Artificial intelligence is revolutionizing many industries, and investors are actively looking to profit from this growing trend. While the giant Amazon attracts a lot of attention, there are other opportunities to invest in AI-related stocks. Two stocks in particular currently stand out in the market, offering investors the opportunity to capitalize on the lucrative potential of this innovative technology.

The actions ofAmazon reached an all-time high this week after rising 53% over the past 12 months. However, despite this impressive growth, its stock price appears slightly overvalued relative to its profits. If you’re looking to invest smartly in AI, two other companies stand out as more attractive and better-priced options: Alphabet And Apple.

Alphabet: An Obvious Choice

Alphabet, Google’s parent company, is showing significant revenue growth as well as rising shares, all at a very competitive price. With 11% market share in the field of cloud computing thanks to Google Cloud, Alphabet is positioned just behind Amazon Web Services (AWS) and Microsoft Azure. However, Google Cloud is outpacing its competitors in terms of growth.

This growth dynamic is also reflected in Alphabet’s massive investments in AI. With powerful brands like Android, YouTube, and Google’s many services, Alphabet has an ideal ecosystem to capitalize on artificial intelligence. For example, the company can improve digital advertising, add generative features to its mobile operating system, and provide a more intuitive search experience.

Here are some statistics illustrating the strength of Alphabet:

• Google Cloud: Revenue growth of 28% year-over-year in the first quarter of 2024.
• Alphabet: Best growth rate in free cash flow and operating income versus Amazon over five years.

Apple: The Long Game

Since the start of the year, shares ofApple rose 14%. Although this figure is lower than that of competitors like Amazon and Alphabet, Apple is taking a more cautious but also potentially more sustainable approach to AI. Recently, Apple has taken steps to move closer to the cutting edge of AI technology.

One notable development is the observer role Apple could get on the company’s board of directors. OpenAI, the developer of ChatGPT. This initiative illustrates Apple’s commitment to integrating AI into its flagship products, notably through a major overhaul of Siri announced at the Worldwide Developer Conference.

Some of Apple’s financial highlights:

• Greater availability of free cash flow and operating income compared to Amazon and Microsoft over the past five years.
• Ability to technologically align with competitors thanks to its robust financial position.

In short, although Apple’s approach to AI is slower, its long-term growth potential in the sector is clear, making it an investment worth seriously considering.

So forget Amazon for a moment and turn to Alphabet And Apple for potentially more profitable investments in artificial intelligence.

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