There’s no question that Nvidia (NASDAQ: NVDA) has been the poster child of the artificial intelligence (AI) revolution thus far.
Nvidia’s graphics processing units (GPUs) and Superchips are so in demand for cloud infrastructure companies and start-ups like OpenAI that there have been widespread shortages and a spike in prices for Nvidia components like the H100. Nvidia’s products have formed the backbone of the computing infrastructure that makes apps like ChatGPT work.
But Nvidia won’t have this space to itself forever. Competition is coming from the likes of Advanced Micro Devices and Intel, as well as the big tech companies that make up a significant chunk of its customer base like Apple, Alphabet, and Meta Platforms, which are working on their AI hardware to reduce their dependency on Nvidia.
Nvidia isn’t a bad buy right now, but there is some downside risk in the stock since it’s jumped nearly 500% since the start of 2023. That was evident when the stock fell 10% on April 19 on little more than fears of a bubble bursting in AI stocks.
For investors who want an AI stock that isn’t at risk of a bubble popping, keep reading to see two that are well positioned for long-term growth.
Image source: Getty Images.
1. Microsoft
Microsoft (NASDAQ: MSFT) has been in the AI limelight ever since OpenAI launched ChatGPT. That makes sense. After all, Microsoft is a close partner of OpenAI, having invested an estimated $13 billion in the start-up, and Microsoft’s AI strategy hinges on OpenAI’s products and collaborations to a large extent.
Unlike a hardware company like Nvidia, Microsoft has a wide range of ways to capitalize on the AI boom. It’s integrated generative AI technologies into products like its Azure cloud infrastructure service, GitHub code repository tools, Microsoft Office suite, Bing search engine, and others. The company has rolled out Copilot, which it calls its AI-powered productivity tool, across a range of products, and CEO Satya Nadella said in the company’s recent earnings report, “Microsoft Copilot and Copilot stack are orchestrating a new era of AI…
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