Investors predict three AI stocks, including Microsoft and Apple, will outperform Nvidia by 2030.

From Nasdaq: 2024-06-26 05:07:00

Artificial intelligence (AI) is transforming the corporate world with Chatbot applications like OpenAI’s ChatGPT, potentially driving a trillion-dollar productivity boom worldwide. Nvidia’s data center GPUs fueled a 427% increase in revenue to $22.6 billion, pushing its valuation over $3.2 trillion. However, Nvidia’s growth may slow down by the end of the decade due to diminishing returns beyond AGI.

Cathie Wood’s Ark Investment Management has been selling Nvidia stock, believing software companies have a greater opportunity. Microsoft, with a market cap of $3.3 trillion, is positioned to capitalize on the AI boom with projects like Copilot. Microsoft’s $244.9 billion revenue forecast for 2024 surpasses Nvidia’s expected earnings, making it a potentially more lucrative investment.

Apple’s vast ecosystem and upcoming Apple Intelligence launch could place it ahead of Nvidia. Apple’s estimated revenue of $386 billion in fiscal 2024 exceeds both Microsoft and Nvidia combined. Alphabet, with its Gemini AI chatbots, also poses a challenge to Nvidia’s dominance. Alphabet’s stock, with a P/E ratio of 27.5, could be a bargain compared to Nvidia, Microsoft, and Apple.



Read more at Nasdaq: Prediction: 3 Unstoppable Artificial Intelligence (AI) Stocks Will Be Bigger Than Nvidia in 2030