In recent times, there has been an unparalleled surge in investment interest surrounding the concept of artificial intelligence (AI). Businesses that allocate resources towards cutting-edge technologies, including AI and cloud-based services, have witnessed substantial growth.
The current market sentiment is optimistic, driven by the increasing likelihood of the Federal Reserve initiating interest rate cuts later this year following a decrease in the overall inflation rate.
Furthermore, the software industry, particularly companies heavily involved in AI development, has propelled the sector to new heights.
Highlighted below are some leading businesses in the AI technology domain that have seen remarkable increases in share prices and heightened investor enthusiasm, signaling promising investment opportunities.
Salesforce (CRM)
offers cloud-based services that deliver comprehensive insights into a company’s customer base and vital metrics like projected sales growth, sales data, and enhanced workflow capabilities across various applications.
Similar to Meta Platforms (NASDAQ: META) and other stocks, Salesforce recently declared an initial quarterly dividend of forty cents per share, underscoring its robust financial position.
With the introduction of innovative products such as Einstein Copilot, which streamlines business communication through AI systems, and earnings that have exceeded analyst expectations, Salesforce’s stock price has surged by over 60% in the past year.
Amazon disclosed its third-quarter fiscal results for 2024 on February 28, reporting an 11% year-over-year increase in overall revenue. Share repurchases in the fourth quarter amounted to \(1.7 billion, with an additional authorization of \)10 billion for repurchases.
A frontrunner in the evolving realms of relational AI and cloud computing, Amazon continues to exhibit strong and consistent growth potential.
ServiceNow (NOW)
ServiceNow (NYSE: NOW) specializes in technology solutions for online businesses, leveraging a diverse array of tools such as robotic automation, artificial intelligence, and cloud services to enhance workflow efficiency.
In its fifth-quarter full-year 2023 earnings release on January 24, ServiceNow reported a 27% growth in customer revenue and nearly doubled gross income compared to the previous year.
In a bid to bolster its development capabilities, ServiceNow announced the acquisition of EY Smart Daily Management Application and 4Industry in March.
Buoyed by robust earnings and technological advancements, ServiceNow’s stock price has surged by over 75% in the past year, positioning it as a formidable player in the competitive industry with strong growth prospects.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ: AMD) is a prominent semiconductor and computer hardware manufacturer known for products like AMD Ryzen, AMD Athlon, AMD Threadripper, and AMD Radeon, widely utilized in data centers and gaming.
With the increasing demand for chips in data centers and related applications driven by AI and cloud technologies, AMD, along with other semiconductor firms, has witnessed significant growth this year.
On January 30, AMD reported its earnings for the fourth quarter of the fiscal year 2023, noting a 10% year-over-year revenue increase. Net income surged from \(21 million in Q4 2022 to \)667 million in Q4 2023, with notable growth in data center revenue by 38%. The gaming and client segments also saw revenue upticks of 17% and 62%, respectively.
AMD’s stock price has soared by over 85% in the past year, presenting a compelling option for investors seeking a cost-effective alternative to Nvidia (NASDAQ: NVDA) with substantial growth potential.
As of the time of writing, Noah Bolton does not hold any positions (directly or indirectly) in the securities mentioned in this article. The opinions expressed herein are solely those of the author, in compliance with the InvestorPlace.com Publishing Guidelines.
Noah brings to the table approximately a year of freelance writing experience, with a focus on stock market trends and financial news during his tenure at Investopedia.
