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In 2024, the global artificial intelligence market will produce $500 billion in revenue from the sale of software, hardware, and services, predicts international research firm International Data Corporation. The quick development of this industry suggests that both those engaged in artificial intelligence and those who gain from the usage of such technology to gain competitive advantages.
What industry needs your attention?
NVIDIA AI Stocks
The GPU market has long been dominated by NVIDIA. The company has recently been concentrating more on the processors that run AI systems, like speech recognition and autonomous vehicles.
The business’s data center segment sales are increasing yearly. Revenue in this region was $3.7 billion in the most recent quarter, which is an 83 percent increase over the same period previous year.
The new H100 and Grace CPU Superchip chips, which NVIDIA unveiled this spring, will considerably speed up computation when employing artificial intelligence. The business also revealed its new Eos supercomputer, which is billed as the fastest AI system in the world. At the end of this year, the supercomputer is anticipated to launch.
Since NVIDIA is already a leader in AI chips, it will be able to benefit from the growth of this market in the future.
AMAZON AI Stocks
You might think of Amazon as an e-commerce company, but artificial intelligence is one of the factors that motivates the company’s online store.
The trading platform’s AI is in charge of ranking the products, recommending them to users, and displaying deals to them. For its StyleSnap service, which enables customers to take images of the outfits they’re shopping for and instantly identify comparable goods to sell in its store, the company also uses artificial intelligence.
However, Amazon’s AI is utilized for more than just online shopping. Amazon Go and Amazon Fresh grocery stores analyze what customers add to their carts and immediately bill them as they leave the store using real-world AI, cameras, and sensors.
Since 2020, Starbucks and other retailers have been able to use a device that Amazon calls “Just Walk Out.”
Amazon Web Services (AWS), the business’ cloud computing service, merits special consideration. Various AI tools, such as speech-to-text, image and video analysis, chatbots, prediction, fraud detection, and more are available to developers and organizations through AWS.
AWS is the largest source of revenue for Amazon, contributing $6.5 billion in operating income in the most recent quarter, up 56% over the same period last year. With a 33 percent market share, AWS is not only tremendously profitable but also a top provider of cloud infrastructure services.
Additionally, with the cloud computing market projected to reach $1.6 trillion by 2030, Amazon should be able to benefit from the expanding demand for AI given its early commitment to the technology and market leadership in the space.
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Purchasing shares in the aforementioned technology companies will probably not result in instant returns at this time because of the stock market’s extreme volatility. But investors should keep in mind that one of the best ways to earn long-term returns is to select solid companies that are leaders in their respective areas and hold those stocks for at least five years.