– The International Monetary Fund predicts a technology revolution led by artificial intelligence (AI) that will boost productivity and global growth.
– Companies must make significant investments in data collection and AI models to achieve the promise of AI.
– Three AI stocks well-positioned to benefit from the AI revolution are Taiwan Semiconductor Manufacturing, Meta Platforms, and Alphabet.
The International Monetary Fund (IMF) predicts that we are on the brink of a technology revolution spearheaded by artificial intelligence (AI). This revolution will boost productivity, accelerate global growth, and raise incomes worldwide. As businesses analyze how to leverage AI to improve productivity and understand its impact on the competitive landscape, several AI stocks are well-positioned to benefit from this transformation. These stocks have made significant investments in AI technology, giving them a competitive advantage in the market.
One of the leading AI stocks is Taiwan Semiconductor Manufacturing (TSM), the largest semiconductor foundry. The company is experiencing soaring demand for AI chips as the need for data centers and edge computing grows. It has built an unassailable competitive advantage in its process technology through heavy investment in research and development. This has attracted high-quality, fabless customers like Apple and Nvidia. The company is producing leading-edge node chips for AI customers and is forecasted to see more than 20% revenue growth in 2024 due to high-performance computing demand related to AI.
Meta Platforms (META), primarily a social media company, has also become one of the top AI stocks. Faced with diminished advertising accuracy after Apple’s IDFA changes, Meta Platforms pivoted to AI and has invested in significant computer power and AI researchers. It has released large language models for research and commercial use, with impressive results in coding, reasoning, proficiency, and knowledge tests. Meta Platforms has adopted an open-source approach, giving away its models to third-party developers for further improvement. With CEO Mark Zuckerberg’s commitment to developing artificial general intelligence, Meta Platforms is expected to be a key player in the AI ecosystem.
Google’s parent company, Alphabet (GOOG, GOOGL), has made significant investments in AI. It acquired DeepMind in 2014 and has been using AI in search, introducing products that integrate generative AI. Google has high-quality training data that has been crucial in creating context-aware AI functions. It has also developed specialized hardware, Tensor Processing Units (TPUs), specifically for AI applications. As Google integrates AI into its products, it will see further growth. In December 2023, Google released its latest and most powerful large language model, Gemini, proving its commitment to AI.
Overall, these three AI stocks – Taiwan Semiconductor Manufacturing, Meta Platforms, and Alphabet – are well-positioned to benefit from the AI revolution as they have made significant investments in AI technology and have a competitive advantage in the market.