Release of Chat GPT has generated a lot of buzz and artificial intelligence (AI) has become one of the hottest topics in the world of business and investment. Many companies are learning how to harness the power of AI to grow their business.
investors are pouring in AI stocks, hopes to capitalize on that frenzy and profit. But many AI stocks will not live up to the hype. As such, investors should consider companies that have an advantage in AI that have not yet been caught up in the hype. Equinix (EQIX 0.33%) and Intuition (INTU -0.36%) AI stocks are lesser known. What’s even more compelling is that both pay dividends, allowing investors to get immediate returns from companies that are beginning to capitalize on his AI megatrend.
Give AI the space it needs
Equinix is Data Center Real Estate Investment Trust (REIT). These facilities will become increasingly important to support AI, as companies will need space to store all the data used to train and run AI programs.
there it is AI-driven demand is already starting to materialize. CEO Charles Myers said: First Quarter Conference Call: “Over the last few quarters, we have had some significant AI wins, and a growing pipeline of new opportunities, both directly and with key partners, in both training and inference use cases. We’re in the “early stages” of AI-driven data demand, and Myers believes this represents an “exciting growth opportunity for the company.”
AI could support strong business occupancy rates, rising rents, and new development opportunities. Equinix believes AI will use his two types of data centers. AI training may take place in large data centers like xScale facilities. AI interface programs like ChatGPT, on the other hand, require proximity to quickly process data and generate output, so they are more likely to run in retail stores close to the end user.
Equinix’s data centers generate a lot of cash, giving REITs the money to pay out commensurate dividends. Equinix 1.9% dividend yieldslightly higher than S&P500of Yield 1.7%. This allows investors to generate great returns. unearned income Streams from stocks powered by AI. The company raised its dividend by 10% earlier this year and has steadily increased it over the years.
Meanwhile, investors are getting lots of profitable AI-powered companies at reasonable prices. Shares are down about 5% from their 52-week high as the stock has yet to live up to the AI hype. It’s now trading at around 23 times forward earnings, a far cheaper price than many AI stocks.
Harness the power of AI to empower your customers
Intuit’s strategy is to become an AI-driven expert platform.of Fintech company wants to harness the power of AI and human expertise to improve client outcomes.
Intuit powers its proprietary AI-driven expert platform with several technologies. Use knowledge engineering to refine and manipulate rule sets such as tax laws. Employ natural language processing to interact with your customers and seamlessly meet their needs.Company also relies on machine learning Leverage that vast amount of data to create personalized customer experiences. Finally, Intuit is investing in generative AI capabilities to improve customer outcomes.
The company harnesses the power of AI across its platforms. For example, the company’s Mailchimp marketing platform allows customers to leverage the power of AI to create their marketing email campaigns. Marketers can automate, generate and optimize content to save time and improve results. Meanwhile, TurboTax and QuickBooks customers can get automated digital assistance from AI or be matched with human experts through its technology. Finally, Credit Karma uses AI to provide users with personalized insights and recommendations.
Intuit enables investors to generate small passive cash flows from its AI-powered expert platform. The company pays a modest dividend, currently yielding around 0.7%. That’s a fair dividend given that many hype-ridden AI stocks aren’t profitable or don’t pay dividends. Intuit, on the other hand, regularly increases its dividend. Last year, it raised its rewards to investors by 15%.
Given that the stock is currently about 35% below its 52-week high despite its AI-focused strategy, the hype train certainly hasn’t reached the Inuit yet. The fintech company trades at a reasonable 30x price/earnings ratio, not as expensive as some popular AI stocks.
Income sources powered by AI
Equinix and Intuit are early leaders harnessing the power of AI. Both companies pay out steadily increasing cash dividends quarterly, so investors won’t have to wait long to see the rewards of AI-driven growth. This allows investors to see tangible returns from his AI-powered investments, even if the technology doesn’t live up to the hype.
Matthew DiLallo holds positions at Equinix and Intuit. The Motley Fool has positions in and recommends Equinix and Intuit. The Motley Fool has a disclosure policy.
