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NICE NICE recently announced that the Douglas County District Attorney’s Office in Georgia has selected its Justice solution to bring about a digital revolution in the criminal justice system.Through NICE Justice, a part of the Ev
InterDigital, Inc. IDCC announced a strategic partnership with the Indian Institute of Technology, Kanpur (IIT-K) to expedite research for advanced 5G and 6G networks. InterDigital has a decade-old presence in India and is activel
Shares of Taiwan Semiconductor Manufacturing Co (TSM ), the world’s largest contract chipmaker, have fallen more than -10% since posting a 6-month high in June as weakness in demand and elevated inventories plague the chip sector. The stock is also under pressure from soft global consumer electronics demand and the...
The level of excitement regarding the growing adoption of artificial intelligence (AI) has been palpable this year, and 2023 may well go down in history as the year AI came of age. Much of the focus early on centered on Nvidia (NASDAQ: NVDA), which supplies the state-of-the-art g
Shares of Diamondback Energy, Inc. FANG slumped 3.7% as crude oil prices continued to fall.Shares of Meta Platforms, Inc. META gained 2.2%, with technology becoming the biggest gainer in the day and drove the Nasdaq index with it.
HP Inc. HPQ and Alphabet’s GOOGL Google have partnered to make Chromebook laptops in India. Alphabet CEO Sundar Pichai revealed the collaboration in a tweet on the microblogging platform X, formerly known as Twitter, this Monday.
December S&P 500 futures (ESZ23) are down -0.38%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.50% this morning as market participants looked ahead to the release of fresh labor market data while the hawkish rhetoric from Fed officials kept Treasury yields elevated.
December S&P 500 futures (ESZ23) are up +0.07%, and December Nasdaq 100 E-Mini futures (NQZ23) are up +0.02% this morning as market participants looked ahead to the release of fresh labor market data while the hawkish rhetoric from Fed officials kept Treasury yields elevated.
December S&P 500 futures (ESZ23) are up +0.12%, and December Nasdaq 100 E-Mini futures (NQZ23) are up +0.10% this morning as market participants looked ahead to the release of fresh labor market data while the hawkish rhetoric from Fed officials kept Treasury yields elevated.
Global technology giants faced the biggest drop in their market capitalization in September, hit by a rise in U.S. bond yields and waning enthusiasm over artificial intelligence (AI).
December S&P 500 futures (ESZ23) are up +0.06%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.05% this morning as markets showed signs of calm ahead of the release of fresh labor market data.
Nvidia (
NASDAQ:NVDA
) stock is an obvious bet to capitalize on the growth potential of the transformative
AI (Artificial Intelligence) technology. However, with a year-to-date rally of about 207%, NVDA stock’s valuation might not be enticing near the current levels. Nonetheless, if you’ve missed the remarkable rally in NVDA, consider investing in shares of Alphabet (
NASDAQ:GOOGL
)(
NASDAQ:GOOG
) and Amazon (
NASDAQ:AMZN
).
Morgan Stanley analyst Brian Nowak believes both companies are well-positioned to seize the AI opportunity.
In a note to investors dated October 1, Nowak said that the addressable market for generative AI enterprise software remains large, providing multi-year growth opportunities for companies, including Google Cloud and Amazon Web Services. Nowak is bullish about GOOGL and AMZN stocks.
With this backdrop, let’s consider why Google and Amazon are top AI bets.
NVDA's Soaring Valuation Calls For Alternatives
Google Cloud highlights that its AI and machine learning products and solutions help build generative AI applications quickly and efficiently.
Thomas Kurian, the CEO of Google Cloud, said during the Goldman Sachs Communacopia & Technology Conference that AI would require large-scale infrastructure, and Google has been building it. Kurian added that 70% of AI unicorns use Google Cloud, and over 50% of all funded AI companies are its customers.
The company also introduced a series of
AI-powered functionalities across its products, encompassing Workspace Collaboration, Data and AI, Infrastructure, and Cybersecurity solutions.
Regarding Amazon, its Amazon Web Services (AWS) continues to dominate the cloud infrastructure industry. During the Q2 conference call, AMZN’s
CEO Andrew Jassy said that AWS is the leader in the cloud space with the most extensive customer base, “size of partner ecosystem, breadth of functionality, and the strongest operational performance.”
Further, Amazon has invested heavily in AI and is leveraging Nvidia’s H100 GPUs (Graphics Processing Unit) to develop generative AI applications.
While Google and Amazon are leading the cloud infrastructure space needed to modernize IT systems, train AI models, and develop AI applications, let’s look at what the Street recommends for their shares.
Is Alphabet Stock a Buy, Sell, or Hold?
With Google at the forefront of transformative technological advancement, analysts maintain a bullish outlook about its prospects. With 31 Buy and four Hold recommendations,
Alphabet stock has a Strong Buy consensus rating.
Analysts’ average price target of $150.67 implies 12.3% upside potential from current levels.
Is Amazon a Buy or a Sell Right Now?
With 40 Buy and one Hold recommendations,
Amazon stock is a Strong Buy (based on consensus rating). Further, analysts’ 12-month average price target of $176.02 implies an upside of 35.96% from current levels.
Bottom Line
Google and Amazon are leading companies in the cloud space and are poised to capitalize on AI-led opportunities. Both companies sport a Strong Buy consensus rating on TipRanks. However, Amazon stock offers a higher upside potential from current levels (based on analysts’ consensus price targets) when compared to Google.
Disclosure
There's no question which stock is most likely at this point to be the S&P 500's best performer of 2023. Nvidia's (NASDAQ: NVDA) share price has close to tripled year to date. The No. 2 S&P 500 stock -- Meta Platforms -- trails well behind with a gain of roughly 150%.
Micron (NASDAQ: MU) and Advanced Micro Devices (NASDAQ: AMD) represent two ways to invest in the expansion of the semiconductor market. Micron is a major producer of DRAM and NAND memory chips, while AMD sells x86 CPUs and discrete GPUs.
AppLovin Corporation (APP) shares have soared over 280% YTD to blow away Nvidia and many other tech standouts. Wall Street is diving into the digital application and marketing tool developer for its growth potential within a vital
In today's video, I discuss recent updates impacting Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), Tesla (NASDAQ: TSLA), and other tech companies. Check out the short video to learn more, consider subscribing, and click the special offer link below.
Fintel reports that on October 2, 2023, Goldman Sachs maintained coverage of NVIDIA (NASDAQ:NVDA) with a Buy recommendation. Analyst Price Forecast Suggests 45.51% Upside
The S&P 500 ended nearly flat on Monday with utilities falling sharply and investors weighing the likelihood the Federal Reserve will need to hold interest rates higher for longer.