From NASDAQ: 2024-04-18 09:00:00

Nvidia (NASDAQ: NVDA) has seen a surge in its stock price due to the increased demand for its GPUs, which are essential for AI development. However, there are concerns about a potential slowdown in AI chip demand. As an alternative, investors might consider buying shares of Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META) as they could benefit more from the AI sector in the long run.

Microsoft (NASDAQ: MSFT) has been a leader in AI thanks to its partnership with OpenAI. The company’s Azure cloud business is growing rapidly, with AI contributing significantly to its growth. Microsoft’s focus on AI-enabled PCs and cloud AI tools puts it in a strong position to capitalize on the growing AI market, which is estimated to be worth $650 billion by 2030.

Meta Platforms (NASDAQ: META) is poised to benefit from the rise in digital advertising enabled by AI. The company’s AI-focused tools are improving advertisers’ returns, and initiatives like the Meta AI chatbot are expanding its reach. With nearly 4 billion monthly active users, Meta Platforms has a significant monetization opportunity in the digital advertising and AI space, making it an attractive investment.

Overall, both Microsoft and Meta Platforms offer promising opportunities in the AI sector, with potential for strong growth in the future. While Nvidia has seen impressive momentum, these companies could be bigger beneficiaries of the AI market in the long term. Investors looking to capitalize on the AI sector should consider these stocks for their growth potential and attractive valuation compared to Nvidia.



Read more at NASDAQ: 2 Artificial Intelligence (AI) Stocks That Could Beat Nvidia in the Coming Decades