Tech stocks, including AMD and Microsoft, are benefiting from the booming artificial intelligence market growth.

From Nasdaq: 2024-07-08 09:15:00

Tech stocks have surged over the past year, driven by the booming artificial intelligence (AI) market. The Nasdaq Composite index has risen 21% year to date, outperforming the S&P 500. OpenAI’s ChatGPT launch in late 2022 reignited interest in AI, benefiting companies like AMD and Microsoft, both poised for growth in the $2 trillion AI market by 2030.

Shares in AMD have soared 153% in 2023 as the company intensifies its AI efforts to compete with Nvidia. Despite Nvidia’s dominance, AMD’s chip advancements and new releases like the MI325X indicate potential for success in the expanding AI market.

Microsoft, a key player in AI, has seen significant revenue growth thanks to its early investments in the technology. The company’s partnership with OpenAI and integration of AI into various services have bolstered its position and led to impressive financial results, outperforming Apple this year.

When comparing AMD and Microsoft as AI stocks, Microsoft emerges as the stronger choice due to its established position, financial stability, and growth potential. Microsoft’s valuation metrics and cash reserves indicate it is better equipped for long-term success in the competitive AI market.

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Read more at Nasdaq: Better Artificial Intelligence Stock: AMD vs. Microsoft