After making a lot of progress in 2022, the artificial intelligence (AI) market is growing, and many of the biggest companies in the world are getting into it.According to Grand View Research, the market for artificial intelligence had a value of $136.55 billion in 2017 and will develop at a compound annual growth rate (CAGR) of 37.3% through 2030. AI will owe a significant portion of its future growth to its ability to improve virtually every industry, including autonomous vehicles, healthcare, manufacturing, aerospace, and many more.
So, now is a fantastic opportunity to explore investing in this expanding market. Here are the top three artificial intelligence stocks to buy in March.
1. Microsoft Inc.
Microsoft (NASDAQ: MSFT) is one of the most well-known names in artificial intelligence (AI) right now, and its $1 billion investment in tech startup OpenAI in 2019 seems like the best idea ever.OpenAI started the AI race in November 2022 when it made ChatGPT, a smart chatbot that could talk like a person in response to questions.The programme is currently available through Microsoft’s cloud service Azure and has been integrated into Microsoft’s Bing search engine.
Microsoft put an extra $10 billion into OpenAi because of the success of ChatGPT. The company is trying to keep its industry-leading position, which has been a big threat to other businesses.For example, Alphabet said at the start of February that AI development would be a greater priority going forward. Since then, the company has put $400 million into Anthropic, a competitor to ChatGPT, in order to keep Google’s large market share among search engines.
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Microsoft’s stock is trading at 27 times earnings, a ratio that has decreased by 13% over the past year. As a result, the company’s stock represents an outstanding investment opportunity in artificial intelligence.
2. Nvidia
While Microsoft allows you to invest in AI-related software, Nvidia (NASDAQ: NVDA) allows you to invest in its hardware. The tech giant makes graphics processing units (GPUs) that can run and build artificial intelligence (AI) software.
Nvidia has already made a big step forward in business by announcing that it will work with Microsoft’s Azure to build a huge AI supercomputer in the cloud in November 2022.The partnership would combine Nvidia’s GPUs with Azure to “assist organisations in training, deploying, and scaling AI, including huge, cutting-edge models.”
In addition to the profitable partnership, Nvidia’s website has a number of resources for developers who want to use its products to advance AI. These include tips on how to improve speech recognition, machine learning, and art design.
A decline in the demand for consumer GPUs in 2022 negatively impacted Nvidia’s business and led to a 50% decline in stock price.But AI gives the company a chance to change its business to focus on a market that is growing quickly.Nvidia’s stock is a must-buy this month because it will be a key player in the development of artificial intelligence.
3. Amazon
Amazon (NASDAQ: AMZN) has utilised AI to manage its e-commerce company efficiently for years, employing the technology to analyse consumer searches, recommend products, predict when product demand will surge, and track delivery.
The best reason to invest in Amazon Web Services (AWS) is that it offers AI-based cloud services through its cloud computing platform, Amazon Web Services.The development of artificial intelligence is intrinsically tied to the cloud industry, as the technology can increase a variety of aspects upon which organisations rely. Amazon currently offers AI services through AWS for machine learning, data science, and other applications.
The cloud market was valued at $483.98 billion in 2022 and is projected to expand at a CAGR of 14.1% between 2022 and 2030. Amazon’s 34% market share is the highest in the industry, which gives them an edge when trying to get customers to use its AI-based cloud services instead of those of competitors.
Together with massive losses in its e-commerce sector and macroeconomic difficulties, Amazon’s shares were severely impacted in 2022, dropping 49% during the year. Nonetheless, its average 12-month price estimate of $137.86 is 48% higher than its present price, making it an attractive opportunity to invest in artificial intelligence via Amazon stock.