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Artificial intelligence (AI) made a huge splash in 2023 and is likely to continue making waves in 2024. After all, industry forecasts estimate the global AI market will grow from roughly $208 billion in 2023 to nearly $300 billion in 2024 and will continue expanding to reach $1.8 trillion by 2030.
When it comes to investing in AI, you want companies where the technology is essential to their businesses. This positions them to prosper from the AI industry’s growth over the long haul. This trio of stocks falls into that bucket. Each of these companies represents different aspects involved in the creation of an AI solution.
It starts with Nvidia (NASDAQ: NVDA), which provides the graphics processing units (GPUs) needed to handle the computing demands of an AI system. Next is Amazon (NASDAQ: AMZN), as its Amazon Web Services (AWS) division delivers the data centers and other IT infrastructure needed to house and run AI programs. Finally, there’s UiPath (NYSE: PATH), which illustrates the kinds of potent AI apps being produced today.
1. AI processing power: Nvidia
Nvidia had a banner 2023, thanks to the popularity of its GPUs used in AI and cloud computing technologies. The company is positioned to repeat its success in 2024.
AI systems require potent processing power, given the complex calculations they must perform. Nvidia’s GPUs fit the bill, leading to sales of $18.1 billion in the company’s fiscal third quarter, ended Oct. 29. That’s a jaw-dropping 206% jump from the prior year’s $3.8 billion.
The company expects its fiscal Q4 to deliver $20 billion in sales, a huge leap from 2022’s $6.05 billion and making for an impressive start to 2024.
Nvidia’s chips are used not only in AI, but also in other hot industries, such as electric vehicles and robotic systems. Moreover, the company formed a partnership with Foxconn to construct data centers specifically tailored to the demands of AI using Nvidia’s technology.
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In describing these new data centers, Nvidia CEO Jensen…
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