These 2 Artificial Intelligence (AI) Stocks Are Still Historically Cheap

Posted under: AI technologies
Date: 2024-02-08
These 2 Artificial Intelligence (AI) Stocks Are Still Historically Cheap

Artificial intelligence (AI) is gaining attention as a significant investment trend, with researchers at PwC predicting that AI could add $15.7 trillion to the global economy by 2030. Nvidia, a semiconductor stock, is the poster child of the AI revolution, but its market share in high-compute data centers is liable to fall due to its GPU scarcity and restrictions on exports to China. Meta Platforms, a social media company, is a historically inexpensive AI stock with a price-to-cash-flow ratio of less than 0.7. Meta AI offers a virtual chatbot, generative AI solutions, and augmented and virtual reality segments. Alibaba, China's leading e-commerce company, uses AI in its large language model, which could improve search quality and marketing to individual consumer needs. Alibaba's future depends on higher-margin cloud services, while Tongyi Qianwen focuses on generative AI solutions within its market-leading cloud. Both companies show potential for sustained growth.

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