artificial intelligence (A.I.) has been attracting investor attention for over a year. Today, everyone understands its disruptive power and potential to contribute trillions of dollars to the global economy.nevertheless Nvidia (NASDAQ:NVDA) is an unparalleled AI investment, and there are many AI stocks that can be turned into cash.
In addition to Nvidia, other chip companies are developing AI chips to power the building and training of large-scale language models (LLMs). Furthermore, the entire semiconductor value chain is expected to grow due to the rapid increase in demand for AI chips. Electronic design automation providers, semiconductor equipment suppliers, foundries, test and packaging providers will all benefit.
Additionally, some companies are leveraging AI to build tools for their customers. They are integrating his LLM to enable faster data processing, personalized customer service, and increased productivity.
These three companies have started monetizing their AI products and are well-positioned to leverage capital. These are the top stocks to profit from AI in the year ahead.
Advanced Micro Devices (AMD)
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Nvidia has grabbed most of the headlines regarding AI; Advanced Micro Devices (NASDAQ:AMD) is a close second. In fact, the semiconductor company has proven it can match Nvidia's innovation, and it expects to generate $3.5 billion in AI chip sales this year.
In December 2023, the company announced its MI300 chip, which has more memory capacity and energy efficiency than previous chips. These chips can power high-performance computing workloads and train the most demanding LLMs. It is already seeing strong demand as companies look to reduce their dependence on Nvidia.
Notably, AMD's AI chips are emerging as a capable alternative. At the time of the announcement, the company revealed that it had partnered with: microsoft (NASDAQ:MSFT). This software company uses his MI300X in Azure virtual machines. Another AI leader, meta platform (NASDAQ:Meta) has also confirmed the introduction of MI300 AI chips into its data centers.
Finally, on April 16, the company launched an AI chip that powers personal computers. Ryzen PRO 8000 series processors for desktops and Ryzen PRO 8040 for laptops are some of the most advanced chips for AI PCs. In fact, according to Canalys, this could be a major growth driver. They predict that 48 million AI PCs will be sold this year, increasing to 100 million by 2025.
Microsoft (MSFT)
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The tech giant recognized the opportunity in AI early on. In January 2023, we announced a partnership with. OpenAI And I haven't looked back since.
First, Azure AI, a cloud infrastructure service, provides tools to build, train, and deploy LLMs. Most companies don't want to invest in data centers to provide the compute and storage for their AI workloads. That's where Azure comes in, providing the compute and resources to build and train models, and the tools to build industry-leading LLMs, APIs, storage, and AI solutions.
Second, Microsoft continues to invest heavily in integrating AI into its products and services. After all, Microsoft is a productivity company, so we use AI to simplify tasks and improve decision-making. A good example is its developer platform, GitHub. Currently, over 1.3 million developers are subscribed to his GitHub Copilot. GitHub Copilot uses AI to complete your code and convert natural language prompts into code.
Additionally, the biggest opportunity lies with Microsoft Copilots. The company launched his Copilots in September 2023 for Windows and Microsoft 365 applications such as Paint, Notepad, Word, PowerPoint, and Excel. Microsoft already charges $30 per user per month for Copilot. As additional features improve the service, MSFT captures more value through price increases.
Metaplatform (META)
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Metaplatform may be used primarily for social media, but it's also one of the best stocks to make money with AI. chief executive officer (CEO) Mark Zuckerberg is investing in AI, with plans to make the social media giant a major player in AI.
The company's entry into the AI space was inevitable. apple (NASDAQ:AAPL) IDFA forced Meta Platforms, which owns Facebook, Instagram, and WhatsApp, to deploy AI to improve advertising performance.
Significant investments are now coming to fruition in 2021 and 2022. The platform leveraged AI to improve recommendations and increase user engagement on social media platforms. On the customer side, we've improved the platform for advertisers so they can improve the performance of their ads.
The company also competes in the LLM space through its open source LLM, Llama. Our plan to keep Llama open source is strategic. Zuckerberg hopes to attract more developers to improve the platform and make it the default.
So far, the social media giant has kept pace with its competitors and recently released Llama 3. META claims this is one of the most powerful models available. Considering its continued innovation, Meta Platforms is one of the top stocks to profit from AI.
On the date of publication, Charles Munyi did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
