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Investing in artificial intelligence (AI)-related stocks has become a major focus for many investors looking to maximize their profits. In 2024, two actions in this area particularly stand out and arouse the interest of potential future millionaires. Let’s discover together these promising opportunities for the financial future.
The impressive growth of the AI market
The marketartificial intelligence (AI) is experiencing rapid growth. According to Grand View Research, the industry reached $197 billion last year and is expected to be close to $2 trillion by the end of the decade. This rapid expansion makes AI an attractive area of investment.
Nvidia: An undisputed leader in AI chips
Nvidia (NVDA) has managed to make many millionaires since the start of 2023, with a 745% increase in its stock. Already recognized for its successes in gaming, consumer products and data centers, Nvidia’s involvement in AI has taken its business to a new level.
In 2023, the company became the first chipmaker to reach a market capitalization of more than $3 trillion. With an estimated 90% market share in AI chips, Nvidia continues to dominate competitors such as Advanced Micro Devices And Intel.
Why invest in Nvidia in 2024?
- Almost exclusive domination of the AI chip market
- Abundant cash flow for future investments
- Ratio price/profits on growth less than 1, which still suggests a potential value
Alphabet: Massive investment in AI software
Alphabet (GOOGL) is investing significantly in the AI software sector. Google’s parent company has strong competitors in cloud giants like Microsoft And Amazon. However, Alphabet stands out for its rapid growth in cloud revenue.
In 2024, the income of Google Cloud grew 28% year over year, outperforming Microsoft Azure’s 21% and Amazon Web Services’ 17% growth. Additionally, Alphabet launched its AI model Gemini, integrating AI capabilities across its entire product line.
Why invest in Alphabet in 2024?
- Rapid growth of Alphabet’s cloud business
- Continuous development of AI products via its subsidiary DeepMind
- Lowest forward price-to-earnings ratio and price-to-free cash flow compared to Microsoft and Amazon, providing the best value
In conclusion, Nvidia and Alphabet present promising investment opportunities thanks to their dominance and strategic investments in AI. For those looking to capitalize on the growth of this industry, these two stocks could be smart picks in 2024.
