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3 AI Stocks With More Potential Than Any Cryptocurrency
The cryptocurrency market has proven its ability to drive growth in investors’ portfolios. Its market value soared to $3 trillion in 2021, and after a slump over the past two years, it is on the rise again. As investors consider the possibility of lower interest rates and a stronger economy, they are returning to growth investments like crypto.
But if you prefer to stick to the stock market, don’t worry: you won’t miss out on major growth opportunities. In fact, some stocks currently have even more potential than any cryptocurrency. You’ll find plenty in another growing field: artificial intelligence (AI). The AI market is expected to surpass $1 trillion by the end of the decade, and today investors are positioning their portfolios to profit. Let’s take a closer look at three AI stocks that could beat any crypto player.
Image source: Getty Images.
1.Nvidia
Nvidia (NASDAQ:NVDA) shares have already climbed triple digits over the past year, but this top AI stock may still have plenty of room to run. Here’s why. Nvidia is the market leader in AI chips, with an 80% share, and is likely to maintain this leadership through the strength of its brand and constant innovation.
Businesses know they can count on Nvidia, making it their preferred destination. Therefore, if Nvidia can stay ahead of its competitors from a technological perspective, it is likely that it will win. For example, You’re here CEO Elon Musk recently said: “There is nothing better than Nvidia hardware for AI right now. » This comment followed Nvidia’s announcement of its Blackwell architecture, featuring a number of innovations, including the most powerful AI chip to date.
This upcoming launch, along with Nvidia’s increasing spending on research and development, are reasons to be confident about the company’s earnings potential. And speaking of profits, Nvidia’s dominance thus far has helped it post triple-digit gains in revenue and net profit last year.
All of this means the stock looks like a great buy on 34 occasions. forward profit estimates and has enough fuel to move forward over time.
2. Alphabet
You probably know Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) better thanks to its biggest revenue driver: Google Search. Advertisers pay to promote their products or services on the search platform, knowing that they can easily reach their audience there. After all, Google Search consistently holds over 90% of the global search market.
Thanks to AI, Google Search is likely to get better and better – and AI tools also make the advertising experience easier for advertisers. Alphabet recently launched its most powerful AI model to date, Gemini 1.5, and is applying the technology across its entire business. In search, generative AI provides users with faster results and access to more information on a specific topic. This should keep users coming back, and as a result, advertisers will likely continue spending on Google search ads.
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Alphabet could also become an AI winner thanks to its cloud business. Google Cloud provides customers with access to AI chips and other products and services to power their AI projects. Last year, Google Cloud announced thousands of AI-powered product advancements, and it all helped Google Cloud win or expand deals with major companies, including McDonalds And Verizon.
Right now, Alphabet stock is trading at 23 times forward earnings estimates, a tremendous entry point for this strong long-term player.
3. Metaplatforms
Metaplatforms (NASDAQ: META) is another company that generates most of its revenue through advertising. Advertisers flock to Meta’s social media platforms – Facebook, Messenger, WhatsApp and Instagram – because they know that’s where they can reach us. More than 3.1 billion people use at least one of Meta’s social media apps every day.
This offered Meta a growing stream of revenue, which also generated profits. Now, Meta is going all-in on AI, with plans to use the technology in all of its products and services in the future. Meta has made AI its investment focus, with the goal of having 600,000 onboard graphics processing units by the end of the year.
Meta has already developed its own extended language model (LLM), Llama, and is currently training Llama 3. This serves as the basis for products such as the new Meta AI conversational assistant – and thanks to Meta’s open source policy, its software could even become an industry standard.
This tech giant has huge AI ambitions, and if it achieves just some of its goals, it could be a big AI winner – which is why it now appears to be a great deal with 24 times forward earnings estimates.
Should you invest $1,000 in Nvidia right now?
Before buying Nvidia stock, consider this:
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Adria Cimino holds positions at Tesla. The Motley Fool holds positions and recommends Alphabet, Meta Platforms, Nvidia and Tesla. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
3 AI Stocks With More Potential Than Any Cryptocurrency was originally published by The Motley Fool