Two Potential Artificial Intelligence (AI) Shares that Might Amass Wealth for You by 2025
DeepSeek's AI model has caused a stir in the market, boasting similar capabilities to OpenAI's ChatGPT at a lower development cost. Despite this, it's clear that the AI revolution is just getting started. Regardless of who emerges victorious, two stocks are prime to profit: Nvidia (NVDA) and Microsoft (MSFT).
If you've been keeping tabs on the AI boom, you're already aware of Nvidia. Its stock has skyrocketed, with a market cap reaching trillions. Even though some investors have sought out lesser-known AI stocks, Nvidia still deserves a spot in every AI enthusiast's portfolio. That's because nearly every AI company out there relies on Nvidia's technology to some degree.
Nvidia's revolutionary H100 chips have greatly improved GPU manufacturing efficiency. They've even outperformed competing chips when it comes to training AI models like ChatGPT and DALLE. Nvidia has utilized its early lead in AI GPUs to build a strong developer ecosystem and maintain market share, estimated between 70% and 95%. Its upcoming Blackwell chips will be even more powerful, boasting significantly reduced energy demands.
Nvidia has carved out a powerful economic moat. Its superior-quality AI GPUs and reputation have provided a significant advantage, allowing the company to maintain and build upon its market share for years to come. New competitors may emerge, but Nvidia's financial prowess and unwavering focus on AI chips make it hard to challenge.
So, if you're betting on AI, Nvidia is a must-have. But don't overlook another crucial supplier – Microsoft (MSFT).
Microsoft's Intelligent Cloud segment has been transforming into a cloud computing powerhouse. Last quarter, the company generated $65.6 billion in sales, with over half coming from the Intelligent Cloud segment. Microsoft expects to invest $80 billion this year in expanding its cloud infrastructure. A significant portion of this investment will go towards powering AI services and platforms, as AI companies require both GPUs and cloud infrastructure.
Controlling approximately 25% of the global cloud compute market, Microsoft is uniquely positioned to capitalize on the AI revolution's growth. Its substantial financial resources allow it to keep pace with the industry's rapid expansion.
The ongoing AI craze has plenty of winners, and Nvidia and Microsoft are among the top contenders. With breakthrough AI capabilities and adoption rates expected to surge in 2025, it's shaping up to be a bright future for these two giants.
Investors looking to capitalize on the AI boom might consider diversifying their portfolio to include Microsoft (MSFT). Besides Nvidia, Microsoft's Intelligent Cloud segment has been thriving, generating significant revenue and anticipated investments in AI-related services.
Given Microsoft's position in the global cloud compute market and its financial resources, it's well-positioned to benefit from the AI revolution's growth, making it an attractive option for those interested in investing in AI-related technologies.
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