Forget AMD in 2024: 2 artificial intelligence (AI) stocks to buy instead, Is it better to invest in AI than in AMD?

At a time when financial markets are evolving rapidly and the race for artificial intelligence is intensifying, it is crucial to question the most relevant investment opportunities. Between AMD’s technology and advances in AI, which sector offers the best potential for investors in 2024? In this article, we will explore two promising stocks in the field of artificial intelligence, offering alternative prospects to AMD.

Why abandon AMD in favor of new opportunities?

In 2023, the chipmaker Advanced Micro Devices (AMD) saw its shares soar 150% thanks to investor enthusiasm for the**artificial intelligence (AI)**. However, lackluster quarterly results quickly dampened that rise, suggesting that other AI investment options might make more sense.

Intel: Recovery and growth

Investors ofIntel (NASDAQ: INTC) have not been spared in recent years, with shares falling 35% since 2019. However, Intel is showing encouraging signs of recovery. For three consecutive quarters, Intel increased its central processing unit (CPU) market share from 61% to 64%, while AMD’s share fell from 36% to 33%.

Intel’s first-quarter 2024 revenue rose 9% to $13 billion, largely driven by a 31% jump in consumer sales. The data center and AI segment also showed revenue gains of 5%, with operating income of $184 million, compared to losses of $69 million the year before.

Intel is folding its business around AI and manufacturing, with plans to build at least four factories in the United States and more overseas. This strategy could allow Intel to capitalize on the growing demand for GPUs in the industry.

Alphabet: A safe bet in AI software

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), known for brands such as Android, YouTube, and Google, is currently the fourth most valuable company in the world, with a market capitalization exceeding $2 trillion. Alphabet’s stock performance in 2024 has outperformed many competitors, while maintaining the lowest price-to-earnings (P/E) ratio among tech giants, making it an accessible value.

Alphabet has launched its AI model, Gemini, bringing generative improvements to its entire product line. With initial investments in AI as early as 2001 and a transition to an “AI first” strategy in 2016, Alphabet is well positioned to continue to innovate in this area.

The benefits of investing in AI

Why should we consider investing in AI in 2024? Here are some reasons:

• AI companies like Intel and Alphabet are showing signs of solid growth and development.
• The price-to-earnings (P/E) ratio of IA stock is more attractive than that of AMD.
• AI-enabled products and services continue to revolutionize several industries, creating significant market opportunities.

In conclusion, although AMD has benefited from initial enthusiasm for AI, its recent results indicate that it may be wiser to consider stocks of companies like Intel and Alphabet, which not only have more attractive valuations , but also more promising growth and future prospects in the field of AI.

Notez cet article