Everyone is talking about artificial intelligence (AI), and it may be one of the hottest investment areas today. why? Because this technology could transform many industries, save companies time and money, and even lead to life-saving discoveries such as better medicines and medical devices. Analysts expect the AI market to exceed $1 trillion by the end of 2020.
However, even though many AI stocks are soaring, it doesn't mean you're missing out if you haven't invested in this exciting space yet. AI's growth story is just beginning. That means there's plenty of room for the strongest players to continue improving over time. So if you're ready to invest in AI, check out these two stocks that are solid investments for the long term.
1.Amazon
you probably know Amazon (NASDAQ:AMZN) Although the company is ideal for e-commerce businesses, it is also increasing its presence in the world of AI. For example, we use this technology to streamline operations within our fulfillment centers and better serve our customers. But Amazon's real focus on AI is in its cloud computing business, Amazon Web Services (AWS).
“We are optimistic that much of this world-changing AI will be built on AWS,” CEO Andy Jassy said in Amazon's recent letter to shareholders. He also said that generative AI could become the most transformative technology since the internet.
Jassy said Amazon is making “significant investments” in the three layers that make up AI. Over time, this could make AWS the go-to place for companies looking to launch AI projects. These layers include the building blocks of the underlying model such as chips and software, fully managed services for customers who want to leverage their existing underlying model, and finally applications driven by his AI.
Because AWS is the number one cloud computing company in the world today, it is in the best position to sell these solutions to customers and become an AI giant.
And buying Amazon stock not only gives you exposure to a high-growth sector, but also the fast-growing e-commerce industry that helped the company report double-digit revenue growth and more than $30 billion in net income last year. You can also get the security of cloud business. . Considering all this, Amazon stock, trading at 44 times forward earnings estimates, is a good value.
2. Metaplatform
meta platform (NASDAQ:Meta) If you use Facebook, Messenger, WhatsApp, or Instagram, this is another company that can become an important part of your daily life. This social media giant owns all four and, thanks to these apps, brings in billions of dollars in advertising revenue every year. This situation is likely to continue. Because, in particular, he keeps users coming back to her Meta in two ways, and it keeps advertisers coming back to users.
First, Meta has a strong moat, or competitive advantage, in the world of social media: its wide and loyal user base, making it difficult for any of us to switch to another platform. Masu. In that case, you may be unable to connect with all your contacts. Meta estimates that over 3.1 billion people use at least one app every day.
Here's the second reason why Meta should be ahead of the curve. The company is focused on AI, making the technology its biggest investment area this year. CEO Mark Zuckerberg aims to deploy about 600,000 graphics processing units (GPUs) of computing this year to ensure enough capacity for the company's projects. He said that
Meta's plans include deploying AI tools across its products and services and increasingly refining them for both leisure and professional use. And Meta, the developer of Llama's large-scale language model, is keeping the software open source because it has the potential to become an industry standard. This is another positive for the company. Considering this and Meta's track record of earnings growth, the stock looks cheap at his 26 times forward earnings estimates. And we're making a sure bet that AI will continue to buy for the long term.
Don't miss out on this potentially lucrative second chance
Have you ever felt like you missed out on buying the most successful stocks? Then you'll want to hear this.
In rare cases, our team of expert analysts “Double Down” stock Recommendations for companies that are likely to take off. If you're already worried that you're missing out on an investment opportunity, now is the best time to buy before it's too late. And the numbers speak for themselves.
-
Amazon: If you invested $1,000 when it doubled in 2010; you have $20,963!*
-
apple: If you invested $1,000 when it doubled in 2008; you have $33,315!*
-
Netflix: If you invested $1,000 when it doubled in 2004; you have $335,887!*
We currently have “double down” alerts on three great companies, and we may not see an opportunity like this again anytime soon.
See 3 “Double Down” stocks »
*Stock Advisor will return as of April 8, 2024
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool's board of directors. Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool's board of directors. Adria Cimino has a position at her Amazon. The Motley Fool has positions in and recommends Amazon and Meta Platforms. The Motley Fool has a disclosure policy.
Are you ready to invest in artificial intelligence (AI)? 2 stocks that are sure bets.Originally published by The Motley Fool
