The technology sector's adoption of generative AI has boosted U.S. stocks, focusing on GOOGL, AMZN, ADBE

From Nasdaq: 2024-10-01 08:32:00

The rally in U.S. stocks in 2023 was fueled by the technology sector’s adoption of generative AI. Concerns arise over profitability, but AI will continue to grow. Investors should focus on Alphabet Inc. (GOOGL), Amazon.com Inc. (AMZN), and Adobe Inc. (ADBE) for short and long-term returns. These stocks are poised for double-digit price increases. High upside potential is expected for GOOGL, AMZN, and ADBE due to their strong AI applications.

Alphabet Inc. (GOOGL) is capitalizing on the demand for Large Language Models with its powerful AI model called Gemini. Google Cloud’s Duet AI and Vertex AI are enhancing user experience, search results, healthcare solutions, and Android development. Expected revenue and earnings growth rates for GOOGL are 14% and 31.6%, respectively, for the current year. Price target for GOOGL is expected to increase by 23.3%.

Amazon.com Inc. (AMZN) benefits from Alexa and its cloud infrastructure platform, AWS. AMZN is leading in the smart home market and cloud services, with expected revenue and earnings growth rates of 10.4% and 63.5%, respectively. Price target for AMZN is expected to increase by 19.9%. Amazon is in a prime position for growth in the digital home and cloud market.

Adobe Inc. (ADBE) has integrated AI applications across flagship products, offering Adobe Firefly for AI-driven services. ADBE’s digital marketing services and AI tools streamline marketing efforts. Expected revenue and earnings growth rates are 10.5% and 13.6%, respectively, for the current year. Price target for ADBE is expected to increase by 19%. Adobe’s AI-based digital tools are transforming marketing and content creation.

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Read more at Nasdaq: 3 Tech Stocks With Extensive AI Applications to Hold Tight for Now