From Nasdaq, Inc.:

The stock market has seen Nvidia shares increase significantly by almost 219% over the past year, reaching record highs thanks to its dominance in the AI market. Investors may feel like they’ve missed out on Nvidia’s rally, so they could consider investing in other AI stocks with more reasonable valuations, such as Microsoft and Intel.

Microsoft has experienced strong growth in AI services through its Azure cloud computing platform, with an impressive 30% year over year rise in revenue that includes a six percentage point lift from AI services. Azure is also gaining larger and longer-term deals, and Microsoft’s AI assistant CoPilot is expected to drive significant growth in average revenue per user.

Intel has seen its shares drop after posting mixed Q4 results and a weak earnings outlook for Q1 2024. However, the company remains positioned to capitalize on the recovering PC market and is making inroads in the AI PC market with its Core Ultra client processors. Intel also sees its foundry business as a major growth catalyst and expects to become the second-largest foundry by 2030.

In the AI market, Microsoft and Intel offer strong potential for investing in 2024. While Nvidia remains a leader, Microsoft’s strength in AI services through Azure and Intel’s position in the PC and foundry markets make them attractive picks for investors looking to capitalize on the continued growth of AI technologies. Both companies have strong potential for long-term growth in AI and related markets.



Read more: Missed Out on Nvidia? 2 Artificial Intelligence (AI) Stocks to Buy Before They Soar in 2024