A topic that has been discussed a lot is artificial intelligence. It is something which will change how the world works, including many industries that rely on technology. However, it isn’t anything new to the digital world.
Artificial intelligence has been around for a long time however, it has had a boost ever since the announcement of ChatGPT back in November 2022. Since then, it has been one of the most talked about topics, including the stock market.
Investors are intrigued by the rise of artificial intelligence and see it as a great investment for the future. Furthermore, people are receiving massive profits from this area, especially through stocks such as Nvidia, Palantir, SoundHound and many more.
If you are an investor looking for something on-trend, you cannot look any further than artificial intelligence. There is doubt that it will be the frontrunner of the stock market, especially with massive corporations now acknowledging the importance of this technology.
Ever since the announcement of OpenAIs ChatGPT, NVIDIA has increased from $141 to $419. In the last month alone, it has increased by 33%. However, NVIDIA isn’t the only stock that has massively benefitted from this bullish run.
Let’s look at why you need to invest in AI before it is too late.
It Can Improve Almost Every Industry
If employees are no longer needed because AI can do their job, major corporations will replace them. It is exactly what AI has done to many industries so far because of how technical it is. AI is and will be a massive part of our lives for many years afterwards. Additionally, AI was roughly estimated at $137 billion in 2022, before the ChatGPT announcement. Now, it is expected to grow to at least 37.3% by 2030.
Major corporations such as Microsoft, Tesla and Amazon are all using AI to help with the efficiency of their company. You likely deal with AI daily, you just don’t know about it. For example, customer support now responds with ChatBots instead of cooperating with a human.
Amazon uses artificial intelligence to recommend products to their consumers. It also tracks a user’s shopping trends. Not to mention the ultra-smart bots they use on their shop floor to pack parcels much quicker and more efficiently.
Artificial intelligence is also used with vehicles. Tesla is one car manufacturer that has developed a car where that no longer requires a driver from A to B. Instead, you can put in your destination on the navigation system and your vehicle will do all the hard work.
Although these companies sound great to the average person. These are not the best companies to invest your money with because they are very limited. Nevertheless, picking an AI business is difficult as you try to predict who will be the most successful during the AI era.
The Best AI Stocks For Investment?
There is no doubt that NVIDIA and AMD are the two biggest companies in the sector at this moment. That is because their fantastic GPUs and CPUs are required to help AI manage their workloads.
NVIDIA is the main supplier to many companies around the world, especially for the GPUs required for ChatGPT. As CHatGPT becomes more common for the average user, it is expected that around 30,000 more GPUs will be required. Due to the increase in demand and the deals with other suppliers, this is now the main stream of income for them.
As mentioned before, AMD is also highly successful in the AI sector. In fact, it wasn’t until recently that AMD acquired Xilinx, a company that specializes in the development of processors for the industrial, automotive and artificial intelligence markets.
One of the biggest questions for AIO stock market investors is which is the better investment. Due to the current value of NVIDIA, many people believe it is overvalued. Now, it seems to be too expensive for investors. AMD is almost a quarter of the price and seems to be the better investment.
Is AI Worth The Investment?
Is AI worth the investment, yes absolutely. This is the sector that will dominate the stock market (and the world)for a long time. However, some stocks are overpriced which makes them not worth the investment. Nevertheless, there are still a few stocks out there such as IBM, Oracle, and Palantir that are all reasonably priced.
Summary
Artificial intelligence has a bright future. That is why everybody is talking about it and investing in this sector.
The stock market can be very volatile at times which is something we have found out when investing in AI stocks. Nevertheless, they have made people a lot of money and there is a lot of potential with these stocks. If you are struggling to find a market to specialize in, we advise you to read up on some of the best artificial intelligence companies.
Gain enough knowledge on them so you can time your investment perfectly and maximize your profits. Make sure you invest with a regulated broker or an AI app that is regulated by the FCA as well to ensure you don’t lose your money to a scam. You could lose thousands of pounds and that would result in you requiring a specialist such as an investment fraud lawyer to retrieve your losses.
