This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEB8506G_M.jpg
ChatGPT, a next-generation chatbot powered by generative AI, marked a milestone by amassing 100 million users within two months of its launch. The application has seen approximately 1.4 billion visits in the past month alone.
Among the companies benefiting from the AI revolution is Nvidia (NASDAQ:NVDA), a supplier of chips and software enabling AI. In its fiscal second quarter of 2024 (ended July 30), Nvidia reported record revenue of $13.5 billion, marking a year-over-year increase of 101%. Its earnings per share also rose impressively by 854%.
Microsoft (NASDAQ:MSFT) is also leveraging AI’s potential by integrating generative AI tools into its popular products and services. The company charges $30 per user per month for its Microsoft 365 AI Copilot. Analysts project this could generate up to $100 billion in additional revenue for Microsoft by 2027.
Industry expert Dan Ives suggests that investors should shift focus to the future of AI adoption. He predicts transformational AI growth in software, chips, and digital media in the coming years with tech sector spending potentially reaching $1 trillion.
Cloud infrastructure providers Amazon (NASDAQ:AMZN) Web Services and Google (NASDAQ:GOOGL) Cloud are expected to be major beneficiaries of the next wave of AI spending. They plan to enhance their AI capabilities and sell these services to their cloud customers while integrating AI-powered services into their core offerings.
Meta Platforms (NASDAQ:META), the parent company of Facebook, has developed LLaMA 2, a large language model essential for generative AI. Despite the controversy, Meta has decided to make this model open source to foster innovation and accelerate its AI expertise. The company has introduced an AI-enhanced advertising tool called Advantage+, which could significantly boost its primary revenue source – digital advertising on its social media platforms.
However, the tech sector’s growth may face some hurdles. The Federal Reserve Bank’s upcoming decision on short-term interest rates has caused some unease on Wall Street. The concern is that any hike in interest rates could potentially dampen stock market progress. Additionally, the yield on 10-year Treasury notes currently stands above 4%, which may prompt some investors to withdraw from the market in favor of a safer return guaranteed by the U.S. government.
Despite these concerns, Ives encourages a long-term perspective on AI’s impact on the tech industry. He believes that companies like Microsoft, Google, and Amazon will experience substantial growth driven by AI over the next 12-18 months. If his predictions hold true, these companies are well-positioned to capitalize on the transformative potential of AI for years to come.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
