AI Stocks to Hold for 25 Years

Author

Saidul Islam
February 13, 2024

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Welcome to BrainBuzz.

Today you will get the Top AI Stocks for long-time holding, Microsoft and Amazon AI Battle, and New AI Tools of this Week.

And more.

AI STOCK

Microsoft AI Growth Challenging Amazon’s Lead

Microsoft’s Rapid Growth in Cloud Services

Microsoft’s cloud is growing significantly faster than Amazon Web Services (AWS), thanks in part to its close relationship with OpenAI. Analysts estimate that Azure, which was about half as big as AWS five years ago, is now three-quarters its size. Revenue at Azure increased 30% in the quarter, compared with 13% year-over-year growth at AWS.

AI’s Role in Microsoft’s Success

Part of Microsoft’s recent momentum is because of artificial intelligence (AI). Amy Hood, the company’s finance chief, said on Microsoft’s Jan. 30 earnings call that 6 points of revenue growth in the Azure and cloud services division came from AI in the latest period, up from 3 points the prior quarter. Microsoft has been adding graphics processing units (GPUs) to its data centers so that clients can run AI models in Azure.

Microsoft’s AI Customers

“We now have 53,000 Azure AI customers,” CEO Satya Nadella told analysts on the company’s earnings call. Jamin Ball, partner at investment firm Altimeter Capital, said it seems that some companies are considering Azure specifically because of the excitement surrounding AI and Microsoft’s perceived lead in the market due to its close relationship with OpenAI.

Microsoft’s Financial Performance

Microsoft, which recently surpassed Apple to become the world’s most valuable public company, generated almost $83 billion in net income in 2023, up from $67 billion the previous year.

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AI STOCK

AI Stocks to Hold for 25 Years

Amazon: The Foundation for AI's Innovations

Amazon is poised to impact AI's growth over the coming years. Amazon Web Services (AWS), the world's largest cloud platform, is aggressively adding tools and services to help developers build AI on it. AWS is bringing in-house-designed chips to its platform this year, including the Graviton4 processing chip for general computing loads and the Trainium2 designed for AI applications. AWS will also deploy Nvidia's next-generation H200 AI chip and over 16,000 GH200 Grace Hopper Superchips intended for the most extensive AI applications.

The Global Cloud Computing Market

According to research by Fortune Business Insights, the global cloud computing market could grow 20% annually to $2.4 trillion by 2030. The size of the opportunity should be enough for everyone, and AWS has maintained a market share lead for years.

Palantir: The AI-Driven Opportunity

Palantir has long used machine learning and other AI tools to deliver analytical insights to clients in the national defense and commercial realms. The Palantir Artificial Intelligence Platform (AIP) employs generative AI technology, and the company has heavily promoted the product recently through what it calls "boot camps," where it helps prospective customers find real-world ways to use the technology to their benefit. Clients that attend these boot camps have reported eye-popping productivity gains from them, such as producing outputs 10 times faster with one-third of the resources.

The Future of AI Stocks

Investing $2,000 in any (or all) of these could pay off well over the next 25 years. It's still early, but it looks like artificial intelligence (AI) is the next great tech frontier¹. Three Fools combed through the technology sector to identify Amazon (NASDAQ: AMZN), Palantir Technologies (NYSE: PLTR), and Snowflake (NYSE: SNOW) as crucial roleplayers that will support AI's broader growth moving forward.

BREAKING NEWS

OpenAI’s revenues have surpassed $2 billion (€1.8 billion) on an annualized basis, as the runaway success of its flagship artificial intelligence product ChatGPT puts it among the fastest-growing technology companies in history.

If you needed more evidence that GenAI is prone to making stuff up, Google’s Gemini chatbot, formerly Bard, thinks that the 2024 Super Bowl already happened. It even has the (fictional) statistics to back it up.

Announcing the funding on Monday, the tech giant said it had opened applications for social enterprises and nonprofits that could help reach those most likely to benefit from training.

AI TOOLS

New AI tools Come this Week.

Zoviz Logo Maker is an AI-powered tool designed for the effortless creation of professional logos and complete brand asset kits.

Kaiber is a video generation engine that enables users to create videos from their own images or text descriptions.

CaptionMyPhotos is a user-friendly AI-powered tool designed to automatically generate creative and personalized captions for photos.