Artificial intelligence (AI) continues to shape the future of technology. The advent of generative AI in 2023 promises to fundamentally reshape the world. The future of technology has also fundamentally changed, and the speed of innovation is likely to only accelerate.
The advent of technologies, including generative AI and conversational AI, is reshaping entire industries. The ability to produce text and art using artificial intelligence promises to increase efficiency while reducing costs. The firms controlling this technology have a massive advantage. It’s entirely likely the leading tech firms of today will harness the technology to the greatest degree. That strongly implies they will strengthen their grip over the economy and the stock market, making an investment in these AI stocks highly intriguing.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA), put simply, is the best of the best AI stocks. The company produces the most powerful and most utilitarian chips across a broad range of AI applications. Therefore, it should be no surprise that the company continues to see strong demand for its products.
Enterprises across all industries and sectors have scrambled to secure their supply of Nvidia chips in 2023. Nvidia’s H100 chips are the fastest, most powerful chips available. Firms that fail to secure those chips put themselves at a distinct disadvantage overall. Thus, it should be no surprise that they can fetch a very high price.
AI is going to continue to reshape the future of technology. Nvidia’s chips are integral to that development. Furthermore, the company recently announced its H200 chip, which will supersede the H100 chip that was already incredibly popular. Those chips will benefit from increased power and capability. Therefore, it is very likely that a similar demand scenario will repeat for those chips, which promises to propel Nvidia higher.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is focused on leveraging AI to change the future of technology in multiple ways. One of the most obvious ways Microsoft intends to change the future of technology with AI is through improved workplace efficiency.
The company released its AI-augmented co-pilot version of Office Suite. Microsoft’s Office Suite of products is ubiquitous across businesses of all sizes. Generally speaking, the application of AI promises to rapidly increase work efficiency across departments and throughout businesses. AI helps augment industry-standard products and the speed with which work is done through products like Word and Excel.
Of course, Microsoft isn’t simply focused on increasing business efficiency through copilot. The company is applying AI on a much broader scale to help increase multiple industries such as healthcare, finance and all the other drivers of the economy. Furthermore, the company applied AI to its Azure Cloud products and services, which will fundamentally change the world of computing and the world in general moving forward.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is another leader in the field of generative AI. The company is competing with Microsoft for dominance in that nascent field. Microsoft has ChatGPT and Google has Bard.
Both offerings generally help users to do the same things — create content as trained large language models (LLMs). To date, Bard and ChatGPT are useful for the same reasons but also suffer from the same issues. While they help users quickly generate ideas, scripts and content of all types, both continue to produce factual inaccuracies.
Generative AI from each company is not limited to a text-based utility alone. Instead, generative AI can also be used to create artwork and other things.
Beyond that, Google is also leveraging AI to help improve its cloud service. Honestly, that’s just the tip of the iceberg with what these companies are doing to change the future of technology through AI. Alphabet has dedicated research teams and deep pockets and is directing tremendous resources toward developing the technology overall. The leading Silicon Valley firms are on the precipice of a massive opportunity that will take years to understand. Investing now seems like a no-brainer.
On the date of publication, Alex Sirois did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
