Man, artificial intelligence is taking off in 2023 like crazy, with companies everywhere talking about how they’re using AI. But the real question is, will it actually benefit their companies and boost their stock prices in the long run?
If you’re an investor looking for a great AI stock that’s actually going to deliver shareholder value over the long term, one approach is to focus on companies that have a history of solid financial performance where AI made a big difference.
Check out these three companies that are totally locked in to the explosive potential of AI. We got Amazon, Alphabet, and UiPath. Let’s dive into why these three are rock-solid AI investments.
First off, Amazon is using AI in a big way in its e-commerce business, where it’s got a whole army of robots powered by AI working in its warehouses, speeding up the whole process and helping Amazon own a massive 38% chunk of the U.S. e-commerce market. Oh, and it’s also using AI to help businesses selling on its site create product listings, and making AI capabilities available to customers of its Amazon Web Services (AWS) platform.
Then you’ve got Alphabet, using AI across tons of its offerings, where it’s helping marketers create ads, managing advertising costs, and helping businesses adopt its generative AI models through Google Cloud. Alphabet’s AI solutions helped grow Q3 revenue by 11% year over year to $76.7 billion, and drove substantial increases in free cash flow.
And let’s not forget UiPath. These guys are using AI to streamline businesses, like automating a bank’s loan application process, and it’s resonating with the market, driving customer growth. UiPath’s revenue is expanding quickly and it’s experiencing a dramatic turnaround in its free cash flow.
With the AI market expected to grow nearly 20 times by 2030, companies like Amazon, Alphabet, and UiPath are primed to benefit from this massive tailwind. These companies are leading the way in implementing AI in their businesses, and that’s a big opportunity for investors looking to own AI stocks.