Investing

Want to Capitalize on the AI Boom? Bet on These 3 Stocks Right Away

Since the unveiling of OpenAI’s ChatGPT last November, the interest of investors in artificial intelligence (AI) skyrocketed. Countless players are now getting attracted to the space as people are rethinking possibilities for disruptive changes that AI could bring. In its second-quarter earnings release, NVIDIA Corporation NVDA mentioned that globally companies are transitioning to accelerated computing and generative AI from general purpose.

These trends are reflected in soaring AI stocks, indicating investors’ expectations that a lot will change in the coming years with the advancement in AI. Considering the backdrop, three stocks that are well-poised to gain in the long run are NVIDIA, Amazon.com, Inc. AMZN and Adobe Inc. ADBE.

We have employed our proprietary stock screener to zero down these three stocks. NVIDIA and Amazon sport a Zacks Rank #1 (Strong Buy), while Adobe carries a Zacks Rank #2 (Buy).

3 Stocks in the Spotlight

Huge demand for NVIDIA’s data center graphics processing units (GPUs) that power AI servers is accumulating terrific growth for the stock. From selling data center chips, the company generated 76% of its revenue in the second quarter of fiscal 2024. NVDA has guided revenues for the third quarter of fiscal 2024 at $16 billion, calling for a massive growth from just $5.9 billion in the year-ago comparable quarter. This is a good reflection of the continuation of NVIDIA’s AI-driven growth.

Amazon is making a considerable effort to integrate AI into its services. This has created opportunities for Amazon’s Amazon Web Services (AWS) to rejuvenate its cloud business. For training and running AI systems, Amazon over the years has been developing its own AI chips, which can be a substitute for Nvidia’s chips.

Adobe is introducing generative AI toolsfor extending its services. Recently, ADBE rolled out Firefly, a generative AI platform for users to generate and edit images. The technology can also be implemented for animations and editing videos, creating more opportunities.
Amazon.com, Inc. (AMZN): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Stock Analysis Report

Adobe Inc. (ADBE): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

This article originally appeared on Zacks

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.