Crypto Vs. AI Stocks
The crypto market has seen a rollercoaster ride since Bitcoin's inception in 2009. The promise of a decentralised network for easy and quick money transfers, sans banks or governing bodies, initially attracted investors. However, recent years have seen a dip in interest and trust in crypto due to its volatility and changes in mining methods.
On the other hand, the stock market, particularly in high-growth industries like artificial intelligence (AI), offers a more reliable haven for long-term investments. According to Grand View Research, the AI market is projected to expand at a compound annual growth rate of 37% through 2030, making it an attractive investment opportunity.
Here are three AI stocks that hold more potential than any cryptocurrency:
1. Advanced Micro Devices (AMD)
AMD's stock has risen 87% since Jan. 1, primarily due to a boom in AI. Its hardware can run and develop AI models, giving it massive growth potential. Despite starting the year slightly behind Nvidia in AI chips, AMD has since focused on developing its position in the industry. Its most advanced GPU, which has caught Amazon Web Services' attention, was revealed this month. With Microsoft supporting its AI chip expansion, AMD is an AI stock with more potential than any cryptocurrency.
After investing $1 billion in OpenAI in 2019, Microsoft has become a significant player in AI. The partnership has granted Microsoft exclusive licenses on multiple OpenAI models, giving it a massive advantage against competitors like Alphabet and Amazon. With AI updates across its product lineup and a substantial market share in productivity software, cloud computing, and operating systems, Microsoft's stock is a more reliable investment option alongside its AI potential.
Amazon's biggest advantage in AI comes from its dominating role in the cloud market with Amazon Web Services (AWS). The cloud industry's alignment with AI growth this year and AWS' leading 32% market share positions it well to profit from AI's development. Amazon's AI assistant Alexa and its AI-driven online retail website further bolster its potential in the tech industry.
In conclusion, while cryptocurrencies may offer quick gains, they also come with high volatility. On the other hand, investing in AI stocks like AMD, Microsoft, and Amazon offers a more stable and promising return in the long run.