May 17, 2024

News and Political Commentary

3 Artificial Intelligence (AI) Stocks to Buy With $2,000 and Hold for 25 Years

2 min read

Some innovations, like e-commerce and the cloud, are so big they can take many years to play out. The companies that create the best investment returns can tap into that growth and ride it for decades.

It’s still early, but it looks like artificial intelligence (AI) is the next great tech frontier. Three Fools combed through the technology sector to identify Amazon (NASDAQ: AMZN), Palantir Technologies (NYSE: PLTR), and Snowflake (NYSE: SNOW) as crucial roleplayers that will support AI’s broader growth moving forward.

The best news? You don’t need much money to make big returns over the long term. Investing $2,000 in any (or all) of these could pay off well over the next 25 years.

Here is what you need to know.

Amazon will be the foundation for many of AI’s innovations

Justin Pope (Amazon): Training AI models requires tremendous computing power to crunch through vast data quickly. That’s where Amazon is poised to impact AI’s growth over the coming years. Amazon Web Services (AWS) is the world’s largest cloud platform, and Amazon is aggressively adding tools and services to help developers build AI on it.

AWS is bringing in-house-designed chips to its platform this year, including the Graviton4 processing chip for general computing loads and the Trainium2 designed for AI applications. Additionally, AWS will deploy Nvidia‘s next-generation H200 AI chip and over 16,000 GH200 Grace Hopper Superchips intended for the most extensive AI applications.

Don’t get me wrong. The cloud is a competitive field with other deep-pocketed players, including Microsoft with Azure and Alphabet with Google Cloud, nipping at Amazon’s heels.

According to research by Fortune Business Insights, the global cloud computing market could grow 20% annually to $2.4 trillion by 2030. So, the size of the opportunity should be enough for everyone, and AWS has maintained a market share lead for years.

Until Amazon is knocked off its lead, the stock is a must-own for long-term growth investors.



2024-02-11 06:00:00

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