Top 3 AI Stocks for Investing in Future Artificial Intelligence Wave

Published Date::29/09/2024

Discover the three brilliant AI stocks that billionaires are buying for the next wave of artificial intelligence. Learn why Nvidia, Amazon, and Datadog are poised for success in the enabling, intelligence, and application layers of the AI boom.

The artificial intelligence movement can be divided into three stages  infrastructure, models, and software. According to a recent report from UBS Global Wealth Management, AI revenue is expected to reach $1.2 trillion by 2027. The analysts believe that AI will be the most profound innovation and one of the largest investment opportunities in human history.

The report breaks down the investment opportunity into three layers  the enabling layer, the intelligence layer, and the application layer. Here are three top AI stocks, one for each layer, that billionaires were buying in the second quarter.

 1. Nvidia  The Enabling Layer  \nNvidia is a leader in the enabling layer, which comprises semiconductor companies and public clouds that provide infrastructure and platform services required to develop AI applications. UBS estimates that revenue from the enabling layer will total $516 billion by 2027. Nvidia's dominance in data center graphics processing units (GPUs) and its 90% market share in AI chips make it a top pick in this category.

 2. Amazon  The Intelligence Layer  Amazon is a leader in the intelligence layer, which comprises companies that use data assets to build large language models (LLMs) and machine learning models that power AI applications. UBS estimates that revenue from the intelligence layer will total $255 billion in 2027. Amazon's generative AI development platform, Amazon Bedrock, and its deep understanding of consumer tastes and preferences make it a top pick in this category.

3. Datadog  The Application Layer  Datadog is a leader in the application layer, which comprises companies that use data assets and models from the intelligence layer to develop AI software. UBS estimates that revenue from the application layer will total $395 billion in 2027. Datadog's observability software platform, which helps businesses monitor, troubleshoot, and evaluate the performance of critical IT infrastructure and applications, makes it a top pick in this category.\n\nIn conclusion, Nvidia, Amazon, and Datadog are three top AI stocks to buy for the next wave of artificial intelligence. Their leadership positions in the enabling, intelligence, and application layers of the AI boom make them poised for success in the rapidly growing AI market.

FAQS:

Q: What are the three stages of the artificial intelligence movement?

A: The three stages of the artificial intelligence movement are infrastructure, models, and software.

Q: What is the estimated revenue of the AI market by 2027?

A: According to UBS Global Wealth Management, the estimated revenue of the AI market by 2027 is $1.2 trillion.

Q: What is Nvidia's market share in AI chips?

A: Nvidia's market share in AI chips is 90%.

Q: What is Amazon's generative AI development platform?

A: Amazon's generative AI development platform is Amazon Bedrock.

Q: What is Datadog's observability software platform used for?

A: Datadog's observability software platform is used to help businesses monitor, troubleshoot, and evaluate the performance of critical IT infrastructure and applications.

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