TL;DR
- The transformational potential of AI on the stock market is highlighted by Google’s 25th anniversary.
- A future with AI instructors and doctors is what Microsoft’s CEO imagines.
- To speed up generative AI, Amazon has unveiled Amazon Bedrock.
- Nvidia’s success was tempered by concerns about stock valuation.
- Insights into long-term investment opportunities of AI on the stock market.
The World Wide Web has accomplished great success. Could the impact of artificial intelligence (AI) on the stock market be even more profound and lasting? As September marks Google’s 25th anniversary, the tech giant, a subsidiary of Alphabet on the stock market (GOOG 0.73%) (GOOGL 0.83%) since 2015, reflects on its remarkable journey.
Sundar Pichai, the CEO of both Google and Alphabet, recently delved into the past quarter-century of achievements and cast a gaze toward the future.
Pichai articulated in a blog post featured on the official Google website, “AI, or artificial intelligence, is poised to represent the most substantial technological paradigm shift within our lifespans.” He further expounded, suggesting, “It surpasses the transition from traditional desktop computing to the era of mobile devices and may even eclipse the prominence of the internet itself.”
Could AI on the stock market genuinely transcend the internet’s impact? Plausible indeed. In the event Pichai’s prognostication bears fruit, I identify three equities worthy of long-term investment, and one deserving caution.
Alphabet
Alphabet, the parent company of Google, claims the apex position on this list. While this choice may invoke controversy, as some harbor concerns that AI poses an existential threat to the conglomerate, I hold a divergent viewpoint.
Let us address this apprehension first. It presupposes that AI could render search engines redundant, thereby endangering Alphabet, given that Google Search constitutes a substantial portion of its revenue.
I envision an alternative scenario, one where AI augments the efficacy of search operations, enabling Google to successfully monetize both search and non-search AI undertakings.
In his discourse, Pichai affirmed that AI will empower Google to address multifarious issues, ranging from offering personalized tutors to every student on any subject to fostering the emergence of sustainable energy solutions, aiding entrepreneurs in nurturing nascent enterprises, and even predicting natural catastrophes.
These opportunities could conceivably unlock lucrative niches for Google and other Alphabet subsidiaries.
Alphabet boasts the three pivotal prerequisites for triumph in the realm of AI: substantial financial resources earmarked for research and development, profound pre-existing expertise, and access to an astonishing reservoir of data.
Pichai asserted in his narrative that Google’s relentless quest for solutions will propel momentous technological advancements over the ensuing 25 years. I posit that his assertion may indeed come to fruition.
Microsoft
The AI boom of 2023 has been a boon to several beneficiaries. I anticipate this trend will endure, and my wager is on Microsoft AI on the stock market (MSFT 1.32%) remaining among the enduring victors.
Microsoft CEO Satya Nadella warrants commendation for his recognition of OpenAI’s ChatGPT’s potential. Nadella not only channeled billions of dollars into OpenAI but also orchestrated the seamless integration of GPT-4 across Microsoft’s product portfolio.
Much like Google’s Pichai, Nadella harbors a visionary outlook regarding AI’s future role within his company.
He recently conveyed to Wired columnist Steven Levy, “I aspire to envision a future wherein each of the planet’s 8 billion denizens can access an AI tutor, an AI physician, a programmer, perhaps even a consultant!”
Microsoft’s key business is productivity; as a report, Microsoft software significantly raises the productivity of professionals in a variety of fields, such as marketing, sales, and programming.
AI seamlessly dovetails with Microsoft’s modus operandi. I would find it astonishing if Microsoft’s stock did not ascend to even loftier altitudes a decade hence, catalyzed by the company’s concerted AI endeavors.
Amazon
Certain observers had opined that Amazon AI on the stock market (AMZN 0.28%) had been outpaced following the launch of ChatGPT.
The e-commerce and cloud services colossus’s Alexa AI assistant was perceived by some as antiquated. However, the performance of Amazon’s stock throughout this year starkly contradicts those assumptions.
Amazon promptly unveiled several AI offerings of its own in early 2023. Arguably the most pivotal among them was Amazon Bedrock, a service designed to expedite the creation of generative AI applications with foundational models.
AI has long played a pivotal role in Amazon’s e-commerce domain, enhancing product recommendations, among other aspects. Amazon Web Services (AWS), its cloud computing division, is my argument that the company’s most important area for AI growth.
Amazon CEO Andy Jassy underscored this point in the latest quarterly update: “Bear in mind, data constitutes the very essence of AI.
Individuals seek to integrate generative AI models with their data, not the converse.” Jassy accurately noted that AWS boasts a more extensive customer base and data reservoir than any competitor, a strategic edge that I anticipate will yield dividends for years to come.
One Additional Selection with a Caveat
There exists one more AI-related equity that piques my interest, albeit with certain reservations. Nvidia AI on the stock market (NVDA -1.45%) emerged as one of the standout success stories this year, with AI fuelling an insatiable demand for its semiconductor chips.
I firmly believe that Nvidia will endure as one of the preeminent players in the AI arena. However, my primary apprehension concerning its stock pertains to its valuation.
In my assessment, all indicators point to Nvidia’s shares being priced for perfection. Nevertheless, we inhabit an imperfect world, and I anticipate that Nvidia’s bubble will eventually burst, a matter of when rather than if.
With that said a retracement in Nvidia’s stock value could furnish an opportune moment to acquire shares. I posit that Nvidia, much like Alphabet, Microsoft, and Amazon, possesses the potential for substantial growth over the long term in the ai stock market, irrespective of whether AI attains a stature greater than that of the internet itself.
Source(S): The Motley Fool
