there is no doubt about it Nvidia (NASDAQ:NVDA) So far, it is the poster child for the artificial intelligence (AI) revolution.
Nvidia's graphics processing units (GPUs) and superchips are in such high demand from cloud infrastructure companies and startups like OpenAI that they are causing widespread shortages and soaring prices for Nvidia components such as the H100. I am. Nvidia's products form the backbone of the computing infrastructure that powers apps like ChatGPT.
But Nvidia won't be able to monopolize this space forever.Competition comes from things like Advanced Micro Devices and intelas well as the large technology companies that make up a significant portion of its customer base. apple, alphabetand meta platformis working on AI hardware to reduce dependence on Nvidia.
Nvidia isn't a bad buy right now, but the stock has soared nearly 500% since the start of 2023, so there's some downside risk to the stock. That was clear when the stock price fell 10% for him on April 19th. AI stock bubble burst.
Investors looking for AI stocks without the risk of a bubble bursting should keep reading to see two stocks that are well-positioned for long-term growth.
1.Microsoft
microsoft (NASDAQ: MSFT) AI has been in the spotlight ever since OpenAI announced ChatGPT. That makes sense. After all, Microsoft is a close partner of OpenAI, investing an estimated $13 billion in the startup, and its AI strategy relies heavily on OpenAI's products and collaborations.
Unlike hardware companies like Nvidia, Microsoft has a wide range of ways to take advantage of the AI boom. The company integrates generative AI technology into products such as Azure cloud infrastructure services, GitHub code repository tools, the Microsoft Office suite, and the Bing search engine. The company is rolling out Copilot, an AI-powered productivity tool, across a variety of products, and CEO Satya Nadella said in the company's recent earnings call, “Microsoft Copilot and the Copilot stack are ushering in a new era of AI transformation.'' We are aligned to drive better business outcomes across all roles and industries.”
Microsoft may not have the explosive growth that Nvidia has, but given its close relationship with OpenAI, dominance in enterprise software, and business diversification including Windows, gaming, and cloud computing, Microsoft It would be hard to doubt that the AI is real.
Investors cheered the tech giant's latest earnings report, sending shares higher after-hours on Thursday as sales and bottom lines easily beat expectations.
Microsoft should be the AI winner no matter what happens in the chip space, even if Nvidia's growth suddenly slows.
2.ServiceNow
ServiceNow (New York Stock Exchange: Current) It has not received much attention in the AI field. The company is best known for offering a comprehensive suite of enterprise software for handling areas such as IT services and operations, as well as customer service and human resources. However, the company is one of the largest cloud software companies and is increasingly establishing itself in the artificial intelligence space.
ServiceNow has been using traditional AI technologies like machine learning and predictive intelligence, but we're also starting to incorporate generative AI to help users generate code to speed up app creation and updates. We use it for our helpful Now Assist tools and for our generative AI controllers. It can be used for content generation, sentiment analysis, etc.
Generative AI has emerged as a key growth driver for the company, with CEO Bill McDermott saying, “Generative AI adoption continued to be weak in the first quarter.”
Like Microsoft, ServiceNow is positioned for broad-based growth with AI, and the company has historically been a model of consistency, with steadily increasing profitability since its 2012 IPO, increasing revenue each quarter. That's an increase of more than 20%. Improved.
Other than a few temporary dips, ServiceNow has been steadily rising in the stock market, and looks poised to continue rising as its competitive advantage becomes even stronger as it scales up. I can see it.
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Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool's board of directors. Alphabet executive Suzanne Frye is a member of The Motley Fool's board of directors. Jeremy Bowman has a meta role on his platform. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Meta Platforms, Microsoft, Nvidia, and ServiceNow. The Motley Fool recommends Intel and recommends the following options: Long January 2025 $45 Calls on Intel, Long January 2026 $395 Calls on Microsoft, Short January 2026 $405 Calls on Microsoft, and $47 May 2024 Calls on Intel. It's a short call. The Motley Fool has a disclosure policy.
“Forget Nvidia: 2 Artificial Intelligence (AI) Stocks to Buy Instead” was originally published by The Motley Fool.
