Since Bitcoin first appeared in 2009, the cryptocurrency market has undergone many changes. Digital currencies initially pitched investors on the idea of a decentralized network that would make transfers easier and faster without the involvement of banks or governing bodies. However, interest and trust in cryptocurrencies has been waning in recent years.
Investors focus on the volatility of many cryptocurrencies. On the other hand, changes in the mining methods of some cryptocurrencies and the demise of cryptocurrencies as an optional payment method by some companies have further damaged the reputation of the market.
Alternatively, the stock market can be a haven for those seeking reliable long-term investments. Companies aggressively working in high-growth industries such as artificial intelligence (AI) can almost guarantee solid returns and protect their holdings over the long term. According to Grand View Research, the AI market is projected to grow at a compound annual growth rate of 37% through 2030, making it an attractive investment opportunity.
Here are three artificial intelligence stocks with more potential than any cryptocurrency.
1. Advanced microdevices
Advanced Micro Devices (AMD -0.62%) The stock has surged 87% since Jan. 1, almost entirely on the back of the AI boom. The company’s hardware can run and develop his AI models, and its ability to supply chips across markets offers great growth potential.
AMD got off to a somewhat weak start to the year. Nvidia Take the initiative with AI chips. But the semiconductor company has since gone to great lengths to establish itself in the industry, unveiling a cutting-edge graphics processing unit (GPU) this month that aims to compete with Nvidia’s offerings. The new chip has reportedly caught the eye of the world’s largest cloud platform. Amazon (AMZN -0.63%) Web Services, Reuters reports that the company is considering using AMD hardware.
In addition, AMD’s prospects in AI have become even stronger after the following news was announced: microsoft (MSFT -1.38%) supports the expansion of AI chips by providing financial and engineering resources. With a 614% share price growth over the past five years, Advanced Micro Devices is an AI stock with far more potential than any cryptocurrency.
2. Microsoft
Microsoft has become one of the biggest players in the AI space since investing $1 billion in OpenAI, the startup behind ChatGPT, in 2019. The partnership granted Microsoft exclusive licenses to several of his OpenAI models, giving the company significant advantages over competitors such as: alphabet and Amazon.
The Windows company has integrated OpenAI’s technology across its product lineup, and so far Word, Excel, Bing, and Azure have all received AI updates. These platform advantages give Microsoft solid prospects in AI. The company’s large market share in productivity software, cloud computing, and operating systems is a valuable tool that attracts anyone seeking AI services, which could give the company a competitive edge.
Data from YCharts.
The chart above shows that Microsoft’s five-year share price growth is relatively close to the two largest cryptocurrencies, Bitcoin and Ethereum. But while the digital currency has experienced violent peaks and troughs, Microsoft stock has been on a gradual upward trend. The data points to Microsoft’s stock as a more reliable investment choice and a scream buy alongside the potential of AI.
3. Amazon
Amazon’s biggest advantage in AI is its dominant role in the cloud market with Amazon Web Services (AWS). With more and more companies trying to attract customers with AI services, the cloud industry has been closely aligned with the growth of AI this year. AWS, on the other hand, leads with his 32% market share, and is well-positioned to benefit greatly from the development of AI.
Additionally, the e-commerce company has long used AI to run its business more efficiently and better serve its customers. The company’s online retail website uses AI to recommend products, determine when a particular product is in demand, and optimize its fulfillment centers.
Amazon’s AI assistant Alexa is also expanding into several product categories, from speakers to watches to headphones and more. AI could boost AWS’ earnings over the long term, but Amazon stock is also a great way to benefit from technology growth in other facets of the tech industry.
Amazon is home to powerful businesses that dominate two high-growth markets: e-commerce and cloud computing. Its endless possibilities make its shares a better choice than any cryptocurrency.
John McKee, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Dani Cook has no positions in any of the stocks mentioned. The Motley Fool has positions with and endorses Advanced Micro Devices, Amazon.com, and Microsoft. The Motley Fool has a disclosure policy.
