Stocks

Investing in AI: Choosing MSFT and GOOG Over Amazon

Published July 8, 2024

As the investment landscape diversifies, the focus is shifting from e-commerce giants like Amazon to other sectors brimming with potential. Particularly noteworthy is the field of artificial intelligence (AI), where some businesses are making significant strides. Amidst this shift, two companies stand out: MSFT and GOOG, whose stocks are currently seen as more attractive investments compared to Amazon's pricier shares.

The Case for MSFT

MSFT, or Microsoft Corporation, an established leader in the technology sector, continues to push the boundaries in AI through innovative software and hardware solutions. With iconic products such as the Microsoft Windows operating systems, the Microsoft Office suite, and the development of Edge and Internet Explorer web browsers, MSFT has secured its position as a staple in computing technology. Not to mention their Xbox and Microsoft Surface lines. Ranking 21st in the 2020 Fortune 500, and the world's largest software maker by revenue as of 2016, MSFT makes for a compelling AI investment opportunity, particularly as it stands as one of the Big Five in the U.S. information technology industry.

The Attraction of GOOG

Alphabet Inc., denoted as GOOG, is yet another titan in the tech world and parent company to Google, boasting an impressive portfolio including former Google subsidiaries. Even with Google's founders at the helm, GOOG exhibits substantial innovation and growth in AI, highlighted by its robust revenue figures that place it as the fourth-largest technology company globally. This multinational conglomerate not only leads in technology but also holds significant value as an investment option.

These AI-focused stocks, MSFT and GOOG, offer undeniable value when considering their current trading prices against Amazon's. Moreover, their presence and ongoing contributions to AI innovation solidify their potential for growth making them attractive picks for investment portfolios.

AI, Microsoft, Alphabet