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News on AI: Observing Trends in Artificial Intelligence and Notable AI Stocks to Monitor

Caution for Investors: Artificial Intelligence Generates Buzz, but Identifying True AI Stocks Is Complex

Similar to the dot-com trend in the 1990s, companies are increasingly branding themselves as AI stocks, including major players like Nvidia, Microsoft, Alphabet, Apple, and Adobe. Even Workday, a leader in human resources, has integrated AI and machine learning into its platform.

However, many companies are merely rebranding older data analytics tools as AI for a PR boost. Determining which companies are genuinely AI-focused and experiencing significant revenue growth from artificial intelligence poses a challenge. For instance, questions arise about Palantir’s stock potential in the realm of AI, and the impact of AI-powered robotics on AeroVironment.

Understanding Artificial Intelligence and Its Users
Artificial Intelligence utilizes computer algorithms to mimic human learning and predictive capabilities. It’s essential to recognize that AI software requires substantial computing power to analyze vast amounts of data and draw inferences.

The prevalent types of AI tools are “machine learning” and “deep learning networks,” with major tech companies like Nvidia, Microsoft, Apple, and Alphabet fitting the AI stock criteria. Amazon, while making strides in generative AI, is playing catch-up.

Other noteworthy AI stocks include Advanced Micro Devices (AMD), Accenture (ACN), and Salesforce (CRM). As the AI trend expands, startups are racing to develop AI chips for various applications, including data centers, robotics, smartphones, drones, and more.

Tech Giants Compete for AI Dominance
Nvidia stands out as a company experiencing AI-driven growth, with its processors in demand for cloud computing, and AI chips guiding self-driving cars in early trials. Tech giants like Apple, Alphabet, Microsoft, and Meta Platforms (formerly Facebook) are actively applying AI to diverse areas such as speech recognition, internet search, and image classification.

Amazon has secured a pivotal role in AI through cloud computing services and voice-activated home digital assistants like Alexa. Additionally, companies like Netflix and PayPal integrate AI tools into their products to enhance performance.

Increased Spending on AI Across Industries
Customers in various sectors, including finance, healthcare, energy, retail, and agriculture, are expected to boost spending on AI for productivity gains and a competitive edge. For those seeking exposure, exploring ETFs like the Global X Artificial Intelligence & Technology ETF (AIQ) is an option.

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