From Nasdaq: 2024-06-10 10:07:00

Artificial intelligence (AI) is on the rise, with the market set to grow at a rate of 37% through 2030, reaching a valuation near $2 trillion. Amazon and Alphabet are key players in AI, with Amazon seeing a 46% stock increase and strong growth in its cloud platform, AWS. Alphabet is also investing heavily in AI, with promising growth potential in the industry.

Amazon has showcased impressive growth, rebounding from economic downturns to see a 46% increase in stock value in the last year. The company’s revenue has increased by 13%, with AWS driving significant growth through AI-related ventures. Amazon is investing heavily in AI across its e-commerce and cloud computing businesses to drive further innovation and success.

Alphabet is investing billions in AI, unveiling advanced AI models like Gemini and announcing plans for a new data center in Malaysia. The company’s diverse product range, including Google and YouTube, attracts billions of users and offers vast advertising opportunities that could help monetize their AI efforts. With a strong growth path in AI, Alphabet presents as a compelling investment choice over Amazon.

Both Amazon and Alphabet offer vast potential in AI, reflected in their stock growth of 184% and 176%, respectively, since 2019. However, Alphabet appears to be trading at a better value, with lower forward price-to-earnings ratios and price-to-free cash flow than Amazon. With a range of potent brands and a vast user base, Alphabet is a solid choice for investing in AI.

Investing in Amazon right now may not be the best move, according to analysts from The Motley Fool Stock Advisor team. They have identified 10 stocks that they believe could produce significant returns, and Amazon did not make the cut. Considering the success rate of their stock picks in the past, it may be worth exploring other investment options before jumping into Amazon.

In conclusion, while both Amazon and Alphabet are strong contenders in the AI market, Alphabet appears to be trading at a better value and offers promising growth potential in AI. With its diverse product range and strategic investments in AI, Alphabet presents as a compelling investment choice for those looking to capitalize on the growing industry.



Read more at Nasdaq: Better Artificial Intelligence Stock: Amazon vs. Alphabet