According to the Association for Digital Transformation, the adoption of artificial intelligence (AI) is expected to increase at an annual growth rate 40% until 2028. It is difficult for investors to identify another market with that level of potential for an investment.
Among the main players in this market (as a humble gamer on a stock exchange platform which I WILL NOT TELL YOU so as not to publicize it) there are two quite interesting ones at the moment. It's about Nvidia e IBM, which are both developing advances that more than others may soon find a practical outlet.
This is why I think out loud that investing a few bucks on these companies could lead to an interesting profit.
1. Nvidia's AI footprint continues to expand
The graphics processing units and systems-on-chips of Nvidia they are the backbone of a huge share of the80% in the artificial intelligence market. They support a wide range of technological developments: game consoles, cars, medical imaging technology and… of course the evolving metaverse. Only at letter “A” in the list, among Nvidia customers there are people like Amazon Web Services and A.
An interesting area? The “direction” of heavy traffic. Who among us doesn't use maps in the car? Think within the next 10 years how they will evolve thanks to artificial intelligence. All Nvidia GPUs. If I tell you "autonomous vehicles” nothing comes to mind?
Also in the decade ahead, businesses will move towards augmented reality, virtual reality, automation, predictability and optimization to deliver accurate results in real time. Bargain sniffers have already started to move: In its fourth-quarter report, Nvidia showed growth as record full-year revenues jumped 61% year-over-year to $ 27 billion, supported by a 53% year-over-year fourth-quarter revenue increase.
The momentum is expected to continue, leading to an expected first quarter revenue increase up 45% from last year, and an astonishing 84% increase from the previous year.
The large drop in the market has caused the share price to drop a bit: this is why the time for an investment is excellent based on its leadership and... the growth expected in the future.
2. IBM is about to decline everything with artificial intelligence
Some IBM systems date back to 1937, and you wouldn't believe it: there are machines from that era still used today. But IBM has changed a lot, and is about to do so even more, guided byartificial intelligence. This, too, can give some extra profit to those who make an investment.
The company that actually invented floppy disks, hard drives and barcodes has evolved quite a bit. In 2020, IBM it already had a leading market share of 13,7% in AI lifecycle software, having achieved first place in AI software platforms globally for five consecutive years.
Expectations for 2022 include revenue growth driven by cloud services and artificial intelligence solutions. In truth, small signs of a slowdown are expected, but no one has doubts about the long term. Let's say 5 years, during which it is practically unimaginable to know how far IBM can go. An investment made today can pay off within this time frame.
Bottom line: an investment in AI is an investment that will pay off
My immediate opinion is this. If you're looking to make some serious money and don't mind a little risk, go all-in on AI companies now. Even on little-known startups, if you want. One of them is the next Apple. If you want to be on the safe side, however (or are simply curious to know what it is), keep an eye on the two elephants I pointed out to you. Nvidia and IBM will undoubtedly be protagonists in artificial intelligence.
In any case, fasten your seat belts; a crazy ride awaits us.
