The artificial intelligence boom shows no signs of slowing.
With artificial intelligence impacting just about every industry in the world, the market could be worth about $594 billion by 2032, according to Precedence Research.
Plus, according to a McKinsey report, “63% of companies that adopted AI into their operations in 2023 reported revenue increases.” Plus, “Artificial intelligence in business operations is expected to double the efficiency of the workforce and boost profitability by an average of 38% by 2035, according to Accenture’s prediction.”
And, according to IBM, “In 2024, it’s estimated that businesses will interact with their customers more through AI-powered communication channels than human-led efforts.”
In short, AI remain explosive for quite some time.
That being said, we’d use weakness in AI-related stocks as a reason to buy.
That includes Nvidia (NVDA).
Sure, it’s now a $900 stock, but it’s likely to push higher as the 800 lb. gorilla in the AI space. Its slight pullback was enough to create even more excitement for the stock.
Oracle’s impressive earnings also reminded investors of how much demand there is for NVDA products. In fact, Oracle just said it “signed a new cloud-computing infrastructure deal with Nvidia in its latest quarter and said it plans to boost capital spending in the next fiscal year, suggesting sustained demand for AI chips,” as noted by Barron’s.
We can also look at Advanced Micro Devices (AMD), where a dip brought out buyers, too.
Helping, AMD’s AMD AI story is “unfolding fast,” wrote Melius Research’s Ben Reitzes, as he delivered dramatic boosts to his price target and estimates for what he calls a “mini-Nvidia,” as noted by MarketWatch.
Even smaller AI companies, like SoundHound AI (SOUN) are getting caught up in the boom. Up about 16% on a volume spike to 81 million shares, it could also race higher with AI giants.
That being said, there’s still plenty of time to jump on the AI boom.
