From Nasdaq:

The artificial intelligence (AI) market reached nearly $200 billion last year and is expected to grow at a compound annual growth rate of 37% through 2030, potentially reaching $2 trillion by the end of the decade. Dedicating a portion of your holdings to this high-growth market could prove beneficial.

Alphabet (NASDAQ: GOOG) and Amazon (NASDAQ: AMZN) are attractive investment options due to their leading cloud platforms. Both companies are well positioned to benefit from the growing AI market, making it essential to examine which could be the better AI stock to invest in this month.

Alphabet, with a 1% year-to-date share increase, delivered strong growth in its AI-focused Google Cloud segment but faced challenges in its Google ad business. Amazon boasts impressive financial growth and significant prospects in AI, including a highly profitable cloud platform, Amazon Web Services (AWS), and various AI technologies.

Alphabet and Amazon each have promising outlooks in AI, offering opportunities to enhance their businesses with the technology. Wall Street estimates the EPS for Amazon may reach $7 per share by 2026, indicating strong growth potential in the near term. Based on current positions and future projections, Amazon might offer significantly higher returns and be the better investment in the burgeoning AI market.



Read more: Better AI Stock: Alphabet vs. Amazon