Markets

The AI Stocks Analysts Favor: A Look at AMD, Amazon, Google, Microsoft, and Nvidia

Published March 18, 2024

In the rapidly growing field of artificial intelligence (AI), five major technology companies are frequently the subject of Wall Street's analysis and investor interest. Advanced Micro Devices, Inc. AMD, Microsoft Corporation MSFT, Alphabet Inc. GOOG, Nvidia Corporation NVDA, and Amazon.com, Inc. AMZN consistently appear in discussions about AI investment opportunities. Analysts' estimates suggest sizable growth potential in the next 12 months, with an average target indicating nearly a 17% upside for one revered stock in the AI space.

Advanced Micro Devices, Inc. AMD

AMD, a frontrunner in the semiconductor industry, is known for its powerful microprocessors and graphics processors. These are vital components for AI technology, particularly in servers, workstations, and embedded systems. Investment interest in AMD underscores the company's importance in an increasingly digital and AI-driven world.

Microsoft Corporation MSFT

As a leading technology titan, MSFT offers a wide array of software, consumer electronics, and IT services. With renowned products like Windows operating systems, Office suite, and its venture into cloud services, MSFT is strategically positioned to capitalize on the expanding AI market. Its AI endeavors extend to various sectors including gaming and personal computing, which could significantly benefit from AI advancements.

Alphabet Inc. GOOG

Alphabet, the parent company of GOOG, stands as an influential conglomerate in the tech space. Already a dominant force in global technology revenues, Alphabet's engagement in AI ranges from advancements in search algorithms to autonomous driving technologies through its subsidiaries. GOOG continues to invest heavily in AI, signaling a robust trajectory for growth and innovation.

Nvidia Corporation NVDA

NVDA has gained recognition for designing GPUs that power gaming and professional applications. However, its contribution to AI extends to the development of SoCs for automotive and mobile computing, making NVDA a valuable player in the AI market. This positions the company well for growth in a future where AI and machine learning are increasingly integrated into everyday technology.

Amazon.com, Inc. AMZN

With its diverse portfolio including e-commerce, cloud computing, and digital streaming, AMZN is seen as a major force in both the technological and AI realms. Amazon's involvement in AI through consumer services like voice assistant technologies and logistical systems represents a considerable part of its business model. As AI applications continue to proliferate, AMZN's stock reflects the potential of AI to revolutionize multiple industries.

AI, stocks, investment