These companies are considerably superior to any cryptocurrency options in terms of AI performance.
Cryptocurrencies were formerly considered one of the biggest investment prospects because proponents believed the digital payment system will eventually supplant more established payment methods. However, because cryptocurrency is distributed, it is difficult to rely on its growth, and values are unpredictable.
Given that Ethereum’s price has decreased 10% and Bitcoin’s price has fallen 4% over the past six months, investors appear to be growing more wary of cryptocurrencies. Tech stock prices have been rising in the meantime. In the same period that Wall Street has become bullish on the prospects of booming areas like artificial intelligence (AI), the Nasdaq-100 Technology Sector index has increased by 15%.
Numerous sectors, including cloud computing, manufacturing, education, healthcare, and others, could benefit from AI. So investing in the rapidly expanding market to benefit from its long-term growth is not a terrible idea. Compared to the cryptocurrency market, the sector will probably provide more stable gains.
The three AI stocks listed here have greater potential than any cryptocurrency.
1. Amazon
The price of Amazon’s (AMZN -4.41%) stock has increased 66% so far this year and doesn’t seem to be slowing down. The company’s retail business saw regular profit decreases in 2022, but it has recovered well this year.
In contrast to its $627 million in losses the year before, its North American industry generated operational income of more than $3 billion in the second quarter of 2023. The company is greatly benefited by several restructuring efforts and a decrease in inflation.
Amazon is making major investments in AI in addition to its growing e-commerce business. Being the location of Amazon Web Services (AWS), the largest cloud platform in the world, gives the organisation a benefit. Sony, Meta, and Netflix are among of its customers.
AWS could continue to lead the cloud market thanks to its growing selection of AI tools, and the firm stands to gain greatly from the long-term growth of the sector.
Amazon is also enhancing its position in AI by foraying into chip creation and making investments in fast-growing countries like India. The company is moving in a positive direction and might provide much greater benefits than any cryptocurrency.
2. Advanced Micro Devices
Advanced Micro Devices (AMD -4.22%), a top chipmaker, has enormous promise in AI. The IT giant has fallen behind Nvidia this year as it gained market share in graphics processing units (GPUs) before the majority of competitors. However, AMD has a lot of support in the IT industry and will start releasing what it calls its most potent GPU yet next year.
Many businesses with an interest in AI have been calling for greater chip market competition to drive down the price of hardware, which is essential for building AI models. Because of this, AMD has attracted the attention of some of the greatest tech firms in the world, including Microsoft (MSFT -0.39%). According to reports, the business is supporting AMD’s chip expansion with engineering and financial resources.
Additionally, last month AMD purchased the AI software company Mipsology. The acquisition is yet another tool that could strengthen its long-term position in AI and assist it in developing goods that can compete with Nvidia.
In the last five years, AMD’s annual revenue has increased by 265%, while operating income has increased by 180%. And throughout that time, the value of the shares has surged 420%. There is no knowing how far AMD could advance in the following five years given the potential of AI. Any cryptocurrency option right now isn’t a better investment than its stock.
3. Microsoft
This year, Microsoft has emerged as one of the AI industry’ most promising businesses. With a $1 billion investment in ChatGPT creator OpenAI in 2019, it gained a huge competitive advantage. This investment has now been expanded by $10 billion, giving it a 49% interest in the startup.
The IT company has integrated AI updates into many of its digital products, including Word, Excel, Azure, and Bing, using OpenAI technology. In the cloud computing sector, the company rivals with Amazon.
Although productivity software, another lucrative field of AI, is where it truly excels. With an expanding selection of options, Microsoft is well-positioned as more customers and enterprises look for AI technologies to increase productivity.
In the near future, the business is going to include a number of AI features in its 365 Office package. A promising development area for the business in recent years has been the subscription-based platform, with 365 revenue increasing 15% year over year in the fourth quarter of 2023. By offering AI services, Microsoft may quickly become the company that everyone turns to when trying to use technology to boost productivity.
Over the past ten years, shares have increased by around 900%. The internet corporation, which is currently the second most valuable in the world by market cap, has repeatedly demonstrated its resiliency. Its successful foray into AI has only boosted the stock’s dependability, making it a screaming buy when contrasted to cryptocurrency.