Investing in top AI stocks like Amazon and Alphabet could yield substantial returns
From Nasdaq: 2025-03-17 18:30:00
- Companies driving artificial intelligence (AI) growth have boosted stock market highs. Investing in top AI stocks during market volatility could yield substantial returns. PwC report predicts AI could increase global GDP by 14% by 2030, adding over $15 trillion to the economy.
- Amazon (NASDAQ: AMZN) benefits from AI through Amazon Web Services (AWS), a leader in cloud services. AI investments enhance online retail with tools like Rufus and Amazon Lens, driving sales growth. With net income of $59 billion in 2024, Amazon’s earnings are projected to grow at a rate of 21% annually.
- Alphabet (Google) (NASDAQ: GOOG, GOOGL) leverages AI in digital advertising and cloud services, driving revenue growth. Google Search generated $54 billion in Q4 revenue, contributing to Alphabet’s $350 billion in total revenue. Google’s AI model, Gemini, powers services with over 2 billion users, increasing advertiser spending.
- Analysts predict Alphabet’s earnings to grow at a 17% annual rate, making it a buy with a forward P/E multiple of 18. While Amazon is a strong investment, consider the 10 best stocks recommended by The Motley Fool Stock Advisor team for potential high returns. Past picks like Nvidia have shown significant growth, offering a blueprint for investor success.
Read more at Nasdaq: 2 No-Brainer Artificial Intelligence (AI) Stocks to Buy in March