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Despite already being leaders in technology, the internet, and AI, these two companies are striking deals and partnerships to strengthen their positions.
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By continuously developing and launching various AI features and tools, users and customers are benefiting.
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Investors aren’t being asked to pay steep valuations to buy these AI stocks.
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10 stocks we like better than Alphabet ›
Artificial intelligence (AI) continues to be the topic of discussion these days. It seems that every week, there’s a new development happening in the space. This further drives excitement from industry participants and observers.
It’s becoming more difficult to argue that AI is just hype. Businesses are investing billions of dollars to position themselves to become AI leaders. Users are finding the various apps to be valuable tools to boost productivity and efficiency.
From an investing perspective, it’s time to put money to work. Here are two top AI stocks to buy right now.
One AI stock to consider adding to your portfolio is Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). The company just announced a partnership with OpenAI that would make Alphabet’s Google Cloud a computing provider for the ChatGPT creator.
Before this, Alphabet announced plans to purchase cloud security company Wiz for $32 billion, in an effort to bolster its security capabilities in an AI era.
The other AI stock to purchase today is Meta Platforms (NASDAQ: META). Like Alphabet, this business isn’t shying away from trying to strike deals of its own. It is reportedly ready to invest $14 billion for a 49% stake in Scale AI, a data labeling company.
And looking ahead, CEO Mark Zuckerberg wants to keep his foot on Meta’s gas pedal. He’s trying to put together a team of experts to create AI superintelligence. Scale AI’s founder and CEO Alexandr Wang will be on this elite team.
Another key reason why both of these dominant businesses are top AI plays is because they have virtually limitless financial resources to push forward. Combined, they had $166 billion in cash, cash equivalents, and marketable securities on their balance sheets as of March 31.
Investors know Alphabet and Meta as two powerful tech enterprises. The former owns some of the most widely used internet properties, like Google Search, YouTube, Chrome, and Android. The latter runs insanely popular social media apps Facebook, Instagram, and WhatsApp. Both companies have billions of users, giving them unrivaled reach.
However, it’s not a shock that AI is management’s top priority these days. For Alphabet, this means making its crown-jewel search engine more useful. The AI Overviews feature was officially released over a year ago, and it’s now being monetized at about the same rate as traditional Search. Perhaps the fears about the search engine market being completely disrupted by AI were overblown.
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