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Two AI Stocks Set to Skyrocket

The artificial intelligence (AI) market has been rapidly expanding, with projections estimating it to reach close to $2 trillion by the end of the decade. This growth has sparked interest among investors, from casual to professional, looking to capitalize on the potential gains in this burgeoning industry.

One company that stands out in the AI market is Advanced Micro Devices (AMD). As a leading chipmaker, AMD has been making significant strides in the AI space. Despite being outrun by Nvidia last year, AMD is now positioning itself to challenge Nvidia’s dominance with the launch of its MI300X AI graphics processing unit (GPU). This move has attracted the attention of tech giants like Microsoft and Meta, indicating the potential for growth in AMD’s AI-focused offerings.

In addition to its GPU offerings, AMD is also focusing on AI-powered PCs, aligning with the projected boost in PC shipments that are expected to be AI-enabled in the coming years. The company recently reported impressive fourth-quarter earnings, with revenue growth in its data center and client segments showcasing its potential for further expansion in the AI market.

Looking ahead, analysts project AMD’s earnings to increase, potentially doubling its stock price by fiscal 2026. With a solid outlook and strong positioning in the AI market, AMD’s stock is considered a promising investment that could go parabolic in the coming years.

Another major player in the AI market is Amazon. While AMD focuses on hardware solutions for AI, Amazon has been making significant strides in AI software through its Amazon Web Services (AWS) platform. As the largest cloud provider with a significant market share, AWS is well-positioned to capitalize on the growing demand for AI-powered services.

Amazon has been expanding its AI capabilities through tools like Bedrock and CodeWhisperer, as well as implementing AI technologies in its e-commerce business to enhance customer experiences. In its recent fourth-quarter earnings report, Amazon exceeded revenue expectations, with a significant increase in free cash flow, indicating its strong financial position and potential for growth in the AI market.

Analysts project Amazon’s earnings to rise over the next two fiscal years, potentially leading to a 68% increase in its stock price by fiscal 2026. With its dominant position in e-commerce and cloud computing, along with its investments in AI technologies, Amazon’s stock is seen as a valuable investment opportunity for those looking to capitalize on the AI market.

In conclusion, investing in AI stocks like AMD and Amazon presents an opportunity for potential gains as the AI market continues to grow. With their strong positioning in the industry and promising growth prospects, these companies could see their stock prices go parabolic in the coming years. Investors looking to capitalize on the AI boom may consider adding these stocks to their portfolios for long-term gains.

Leah Sirama
Leah Sirama
Leah Sirama, a lifelong enthusiast of Artificial Intelligence, has been exploring technology and the digital realm since childhood. Known for his creative thinking, he's dedicated to improving AI experiences for all, making him a respected figure in the field. His passion, curiosity, and creativity drive advancements in the AI world.
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