A new year brings new opportunities, especially for investors eyeing the artificial intelligence (AI) sector. While AI companies experienced significant growth in 2023, there are two particular stocks that are poised to soar even higher in 2024: Amazon and Alphabet. However, their success will be driven by their involvement in the cloud computing industry.
Amazon: While Amazon is well-known for its e-commerce business, its cloud computing offering, Amazon Web Services (AWS), has become a major player in the market. Despite facing some challenges in 2023, AWS retains the largest market share in cloud computing, controlling around 32% compared to its competitors. AWS has been working on optimizing its workload and expects to rebound in 2024 with new AI workloads coming online. If AWS achieves significant growth, it could have a positive impact on Amazon’s overall profits, making it a promising stock for the year.
Alphabet: Alphabet, the parent company of Google, also split its stock in 2022 and is set to make significant strides in 2024. While its Google Cloud division experienced some slowdowns in 2023, it was not as affected as Amazon. The division has a strong focus on AI workloads, with over half of generative AI start-ups as its customers. With Google Cloud growing at a steady pace and an expected increase in operating profit margins, Alphabet is well-positioned to excel in 2024.
Investors should take note of these two stocks as they venture into the AI market this year. Both Amazon and Alphabet have a strong presence in cloud computing, a critical component for AI development and data storage. With new AI workloads and optimization strategies in place, these stocks have the potential to outperform the market in 2024.
The source of the article is from the blog jomfruland.net