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There have never been more millionaires than there are today. In fact, Statista estimates that as of December 2023, there will be 22.7 million billionaires in the United States, which is about 9% of the US population.
One big reason for that is the current bull market, especially artificial intelligence (AI) stocks, which is driving it higher. So let’s take a look at two AI stocks from billionaire manufacturers that still have plenty of room to play. These stocks may not be cheap now, but they may be worth every premium over the long term.
1.Microsoft
First, microsoft (NASDAQ: MSFT). There are many reasons why the world’s biggest companies have created and continue to create countless millionaires, but he would like to highlight one in particular. Microsoft is poised to grow its often undervalued search and news advertising businesses.
In its most recent quarter (three months ending Dec. 31), Microsoft’s search and news advertising division generated $3.2 billion in revenue.That’s a significant amount of money, as much as the income Roku Amounts incurred over the past 12 months ($3.4 billion).
But for Microsoft, the $3.2 billion it makes from advertising is just a drop in the bucket. The company’s quarterly sales are approximately $62 billion. As such, for some investors, the company’s digital ad segment revenues often take a backseat, especially when compared to true digital ad giants such as: alphabet and meta platform.
But thanks to its partnership with OpenAI, Microsoft may be able to force its way into the digital advertising conversation. According to recent reports, OpenAI may be working on a search engine designed to rival Alphabet’s flagship Google Search. Importantly, Microsoft’s quick adoption of key ChatGPT features into its Bing search engine last year opens the door for Microsoft to quickly adopt future breakthroughs again.
Either way, it’s clear that Microsoft has room to grow when it comes to the digital advertising market. The overall market is expected to grow to $966 billion by 2028. If Microsoft can use his AI innovations to increase the popularity of its search and news products, it could turn a hidden revenue stream into a behemoth in its own right.
2. Nvidia
next Nvidia (NASDAQ:NVDA), the undisputed king of AI. In fact, since AI came into the spotlight last year, NVIDIA has seen an explosion in demand for both its products and stock price.In terms of market capitalization, Nvidia is currently his third largest company in the United States, with Microsoft apple.
Part of the company’s rapid growth is thanks to its graphics processing units (GPUs), which are used to train large language models such as ChatGPT. However, there is another reason that is less discussed. It’s Nvidia’s Computing Unified Device Architecture (CUDA) interface.
On a less technical note, CUDA is a unique software framework that helps developers leverage the power of GPUs to train AI models. So this is his secret weapon that makes Nvidia’s GPUs desirable to his AI developers, and helps explain why Nvidia likely has around 90% share of the data center GPU market. Helpful.
Financially, CUDA gives Nvidia a strong strategic moat, making it difficult for rivals such as: Advanced Micro Devices or intel To gain market share. It relies on the OpenCL standard instead, but the performance of this open source system is significantly slower than his Nvidia proprietary language.
Either way, there’s no question that NVIDIA is like a freight train going downhill. Seemingly unstoppable. In its most recent quarter (three months ending January 28), Nvidia reported revenue of $22.1 billion. 265% From a year ago.Yes, you read that correctly, Nvidia’s quarterly earnings. almost 3 times From 1 year ago. Data center revenue increased by 409%, from $4.5 billion to $18.4 billion.
In short, NVIDIA’s CUDA moat is delivering huge shareholder returns and will continue to be a company with the potential to create even more billionaires for some time to come.
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Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool’s board of directors. Alphabet executive Suzanne Frye is a member of The Motley Fool’s board of directors. Jake Lerch has held positions at Alphabet and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Roku. The Motley Fool recommends Intel and recommends the following options: Long January 2023 $57.50 Call on Intel, Long January 2025 $45 Call on Intel, Long January 2026 $395 Call on Microsoft, Short February 2024 $47 Call on Intel. Call, Intel’s January 2026 $405 short call. Microsoft. The Motley Fool has a disclosure policy.
2 Millionaire-Maker Artificial Intelligence (AI) Stocks was originally published by The Motley Fool.
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