This is the era of artificial intelligence (AI). The segment is buzzing with excitement and investment. Companies in great number are highlighting their AI developments. However, it is tough to find real AI stocks that are making money as there are risks as well as opportunities.
Lately, generative AI (GenAI) is on the rise as it can create texts, images, sounds and videos as well. It is suggested to be wise and cautious amid the hype. Microsoft is the biggest investor in OpenAI, which is considered as a leader in AI technology.
Major chipmaker Nvidia is another crucial player in AI. Its stock has soared this year. Its first-quarter earnings report is soon to be released and the expectations are high. Analysts predict a significant rise in earnings and revenue. The key points to look for in the report is how demand is shifting for Nvidia’s AI chips.
OpenAI recently unveiled an improved AI model called GPT-4o. It is capable in handling text, audio and images better. Google made its own similar AI announcements. Both the companies are discussing AI licensing with Apple.
Investors at this point are suggested to mainly focus on AI stocks that improve products or offer strategic advantages. Meta, Amazon, Microsoft, Google and other such companies are investing heavily in AI services for businesses. Nvidia is currently facing competition from Advanced Micro Devices (AMD) in AI capabilities. Broadcom and Marvell Technologies are also emerging in the sector.
Arista Networks is still competing in the data center market with Nvidia. Astera Labs is a new player and lately launched IPO. Super Micro Computer had been a hot AI stock but faced a significant drop recently.
