The artificial intelligence (AI) market exploded last year as OpenAI's ChatGPT announcement reignited interest in the technology. Companies in the technology industry have shifted their focus to emerging areas in hopes of getting a piece of the $200 billion pie.
The AI market is developing rapidly. The company is expected to expand at a compound annual growth rate (CAGR) of 37% through 2030, with a valuation of nearly $2 trillion, according to data from Grand View Research. As a result, it's no wonder investors have flooded into the industry. Excitement about A.I. Nasdaq 100 Technology Sector In 2023, the index will rise by 67%, creating more than a few billionaires in the process.
The market shows no signs of slowing down. AI has the potential to advance many areas, from cloud computing to e-commerce, consumer products, self-driving cars, video games, and more. As a result, it is never too late to invest in AI and reap significant long-term benefits from its development.
Here are three billionaire maker AI stocks to buy this April.
1. Nvidia
It's not that surprising to see Nvidia (NASDAQ:NVDA) The company made the list after cornering the AI chip market last year. In 2023, Nvidia captured an estimated 90% market share in AI graphics processing units (GPUs), the chips needed to train and run his AI models.
Nvidia's long-standing advantage in GPUs has given it a head start on many of its competitors in the AI space, and its stock is up 214% over the last year as revenue soars.
In its most recent quarter (FY2024 Q4, ending in January), the company's revenue increased 265% year-over-year to $22 billion. Operating income increased 983% to nearly $14 billion. This impressive growth is primarily due to his 409% increase in data center revenue, which reflects the surge in AI GPU sales.
The huge potential of AI suggests that demand for chips will continue to grow, and Nvidia will continue to benefit greatly from the industry.
Meanwhile, the graph above shows that NVIDIA's price-to-free cash flow ratio and price-to-earnings ratio (P/E) have fallen sharply over the last year, meaning the company's stock is at its highest point in the past 12 months. I am. . So now is the perfect time to consider investing in this billionaire AI stock before it's too late.
2.Microsoft
microsoft (NASDAQ: MSFT) has grown into a technology giant that exceeds apple Earlier this year, it became the world's most valuable company by market capitalization. This technology giant is home to some of the most widely known brands, including Windows, Office, Azure, Xbox, and LinkedIn.
But this year, all eyes are on Microsoft's growing position in AI. The company was an early investor in his AI, plowing billions into private company OpenAI in 2019. This lucrative partnership gives Microsoft access to some of the most advanced AI models in the industry, and the company's stock price has increased more than 45% year over year. .
Microsoft has been using OpenAI's technology to introduce AI capabilities across its product lineup to stay ahead of its rivals. In 2023, the company added new AI tools to its Azure cloud platform, integrated aspects of ChatGPT into its Bing search engine, and improved productivity in its Office software suite by adding AI capabilities. OpenAI's model and Microsoft's huge user base could make the company unstoppable in the AI space.
Microsoft's P/E ratio is 37, meaning the company's stock is not cheap. However, with its preeminent role in the AI space and $67 billion in free cash flow, the company has the capital to continue investing in its business and maintain its leadership, making the company's stock pricey. Worth the obi. I'm not going to bet on Microsoft's ability to create more millionaires from investors willing to hold for the long term.
3. Advanced microdevices
Chip stocks are attracting attention as interest in AI increases. Advanced Micro Devices (NASDAQ: AMD) is also an attractive investment option. The company was slightly late to his AI party as Nvidia beat AI in the market. However, AMD is investing heavily in the industry and has some lucrative partnerships that could make it a big step forward in the AI space in the long run.
Last December, the company announced the MI300X AI GPU. The new chip is designed to compete directly with Nvidia's offerings and has already attracted the attention of some of the technology industry's most prominent players, with a deal in place with Microsoft. meta platform as a client.
Additionally, AMD wants to lead its own space in the AI space by ramping up the development of AI-powered PCs. According to research firm IDC, PC shipments are expected to increase significantly this year, with AI integration acting as a key catalyst. Additionally, a report from Canalys predicts that 60% of all PCs shipped in 2027 will be AI-enabled.
This chart shows that AMD stock has great potential in the coming years. The company's earnings could reach just over $7 per share over the next two fiscal years. Multiplying this number by AMD's forward P/E of 47 yields a stock price of $329.
Considering AMD's current position, the company's stock price will rise 93% by FY2026, according to these projections. Along with its growth prospects in the AI space, AMD is a stock that could make you a billionaire.
Should you invest $1,000 in Nvidia right now?
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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. Dani Cook has no position in any stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: His long January 2026 $395 call on Microsoft and his short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
3 Millionaire Maker Artificial Intelligence Stock was originally published by The Motley Fool.