Five Stocks to Watch Amidst GPT Revolution

Synopsis:
Artificial intelligence (AI) has become increasingly prevalent in our daily lives and work environments. The market for AI is expected to experience substantial growth in the coming decade. This article covers AI stocks poised to capitalise on the growing trend.

Over the past few weeks, the buzzword around has been the use of artificial intelligence in day-to-day life and for work purposes. It does everything from writing, creating content, animating, and language transition. According to Next Move Strategy Consulting, the market for artificial intelligence is expected to show strong growth in the coming decade. Its value of nearly 100 billion U.S. dollars is expected to grow twentyfold by 2030, up to almost 2 trillion U.S. dollars.

What is generative A.I.?

Generative A. I is an artificial intelligence technology driven by the simplicity of new user interfaces for creating high-quality text, graphics and video in seconds.

With these recent happening, there are a few stocks which deserve to be on your watchlist as a stock market enthusiast:

Microsoft (MSFT)

Share Price*: $345.11

Microsoft’s continuous investment in the artificial intelligence startup Open AI and its commitment to building innovative tools capturing the imagination and introducing large-scale A. I might hold a promising future for the stock.

Since 2016, Microsoft has committed to building Azure into an AI supercomputer for the world, serving as the foundation of its vision to democratise AI as a platform.

These adaptations could be a ‘game changer’ as Microsoft can inculcate A. I capabilities into its business software and disrupt the established industries, which might help the company advance in the fast-moving tech space.

On May 24, 2023, Microsoft announced 50 new products and features at an event, empowering developers to seize the opportunities brought by the latest shift in the technology space and innovate further.

2023 has been a landmark year for Microsoft with Microsoft’s extended partnership with Open AI, the launch of enterprise capabilities of Azure OpenAI, and Copilots across Microsoft 365, Dynamics 365, and Power Platform

Microsoft announced that developers can now integrate their apps and services into Microsoft 365 Copilot with plugins.

NVIDIA (NVDA)

Share price*: $ 467.50

NVIDIA is a highly demanded AI chip manufacturer and also stands to benefit from the A.I hype cycle.

It dominates the A.I computing the market with 80% to 95% market share, joining the elite club of $1tn U.S Companies with a market capitalisation of slightly more than a trillion dollars.

ChatGPT was trained using 10,000 of NVIDIA’s graphics processing units and is tailored to power tools like Bing AI or Stable Diffusion. With the rise of startups in and software working on AI models and image generators, NVIDIA chip sales might continue to grow, providing an edge in the semiconductor industry.

In November 2022, a “multiyear collaboration” was announced, which will see Microsoft build powerful A. I supercomputer on its Azure cloud platform using NVIDA’s GPUs and software.

A.I. may be the future for the gaming industry, and NVIDIA seems to be all set to tap into this opportunity with its launch of GeForce RTX 4060 and 4060 Ti desktop graphics cards.

Alphabet (GOOGL)

Share price*: $ 132.58

Alphabet’s stock edge can continue to rise with the adoption of its own software products and digital advertisement. The introduction of Google Bard can help it create a powerhouse to tap into the dominance in search optimisation, making it a compelling A. I stock.

The continuous innovation by Google in various fields like gaming, healthcare and real-time translation–breaking language indicates it is continuously on its toes.

Using AI and machine learning technologies, Alphabet can offer users more personalised and relevant experiences, increasing engagement and usage of its existing products, including search, YouTube, and others. An improved user experience, in turn, will keep users coming back for more of its services. A happy customer will, ultimately, benefit from Alphabet's monetisation efforts.

Adobe (ABDE)

Share price*: $ 528.87

Adobe has built its name in this space through its fast-paced movement in creating software for marketing, content creation, designing, data analytics and document management and introducing new solutions.

The multinational computer software company’s new creative generative AI support, Adobe Firefly, helps graphic design users create images and text effects.

By unveiling new AI and machine learning (ML) capabilities for its Experience Cloud offering in 2022, Adobe took things a step further. With technology, sales and marketing teams will better grasp the numerous facets of a marketing campaign that impact a buyer's purchasing decision. The company is a must-watch when talking AI stocks because of its efforts to improve AI-based skills.

Firefly, Adobe’s family of creative, generative AI models, now brings even more precision, power, speed and ease directly into workflows where content is created or modified.

Micron Technology (MU)

Share price*: $ 71.20s

The U.S based semiconductor company produces computer memory and data storage, including dynamic random-access memory, flash memory, and USB flash drives.

Due to its extensive storage and high-performance and high-capacity memory chips, which enable AI training and inference engines across cloud, mobile, and edge devices, Micron can profit from the excitement around generative AI.

The rise of chips is expected to continue to rise as AI develops.

Micron intends to invest up to $100 billion over the next 20-plus years to construct a new mega fab in Clay, New York, with the first phase investment of $20 billion planned by the end of this decade. The new mega fab will increase the domestic supply of leading-edge memory and create nearly 50,000 New York jobs.

The potential of artificial intelligence is enormous; thus, tapping it in fast can be beneficial in the long run.

Happy investing!

* As on market close of 28 July 2023.