At the turn of 2022 and 2023, we could see an increased interest in AI tools. Although it was not a complete novelty (for example, Microsoft had previously tried something similar in 2016 with its AI chatbot “Tay”), the massive increase in users of this technology came only with OpenAI’s ChatGPT. This tool crossed 1 million users just in five days. In addition, the company also offers other tools like Dall-e 2, which creates realistic images. Such an opportunity will certainly not go unnoticed by giant technology enterprises. In this article, we’ll look at the businesses that want to enter the artificial intelligence field, and you can own their stocks. The tech industry is highly competitive, so let’s explore which horses we can bet on.
Amazon is looking to reduce costs and modernize its services, which means it is certainly using the latest technology. These include, for example, automation or artificial intelligence. One of the most popular AI tools is the voice-controlled virtual assistant Alexa which has been installed in the majority of American households. Even the logistics operations of Amazon are based on artificial intelligence, which helps with scheduling and rerouting. The company always tries to be upfront with every new feature or technology (e-books, video streaming via Twitch, Amazon Go cashier-less grocery stores, etc.). In this case, it will not be different.
Google will suffer the most from this modern improvement. People already go directly to ChatGPT to find the information they need. In this case, search advertising or SEO marketing costs are irrelevant. This is also the reason why Google responded promptly with its own AI tool, ‘Bard'”: This phrasing simplifies the sentence and makes it more concise. Google also has an AI Music Generator – MusicLM, that could attract the attention of many people in the creative industry. Anyway, have a look at Google stocks because the company has enough financial resources to fund AI research and engineering and put the whole thing into practice. The alternative for Google shares is Alphabet shares, which include stocks of other companies, but Google still has the dominant stake.
American international technology company IBM is trying not to be left behind. Although this “grandfather” is more than 110 years old, he is not a stranger to the topic of artificial intelligence. Since mid-2020, IBM has bought at least 5 AI companies (Databand.ai, Turbonomic, ReaQta, MyInvenio, and WDG Automation, to name a few).IBM has primarily utilized artificial intelligence in healthcare services, such as expediting the drug development process and enhancing medical care. Health services are not the final stop. The company plans to invest $20 billion in New York over this decade to develop and manufacture semiconductors, mainframe computers, and technologies designed for AI and quantum computing.
Despite extensive layoffs, the company is still trying to stay on top. In September 2022, Meta unveiled their 3D AI-generated videos. As we already know, Meta is trying to create a Metaverse, and it is artificial intelligence that could help us generate objects for this environment. The presence of artificial intelligence will therefore be inevitable.
The previously mentioned pioneer Microsoft, headed by Bill Gates, does not give up on artificial intelligence. According to this CNBC article, Microsoft plans to invest $10 million in OpenAI and its products. It is already using the chatGPT service in its Bing search engine. Thanks to this deal, Microsoft will hold a majority stake of 75% in the company until the investment returns. Following that, it will maintain a minority ownership of 49%.
Probably the most crucial player in the market. Nvidia chips provide a tremendous amount of computing power that is used for example for supercomputers designed by Meta for AI research or autonomous self-driving vehicles. Nvidia’s AI chips (specifically the H100 and A100) are so powerful that the US government has restricted their sales to China and Russia for national security reasons. The increased interest in artificial intelligence will also be reflected in the production and price of this input.
We should not forget to mention Palantir Technologies. In September 2022, the International Data Corporation named it the world’s first AI software platform by both – revenue and market share. Palantir is a supplier of its services to the United States military. We know that the US military is the largest in the world, so this amount was certainly not low.
Apart from these abovementioned, you can be curious about:
Intuitive Surgical Inc., Workday Inc., Dynatrace Inc, UiPath Inc., Micron Technology, C3.ai, Alteryx and DocuSign (Machine learning stocks), Intel, Cisco Systems, Juniper Networks, or Semiconductor Manufacturing Company (TPE:2330) which is a favorite of Warren Buffet.
As usual, do your research.
The world of artificial intelligence can be scary at times, but it can also be rewarding. Both in terms of its intellectual capital and its finances. New, previously unknown players may appear on the AI field, but let’s work with what we currently have on the table.