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3 No-Brainer Artificial Intelligence (AI) Stocks to Buy by 2025 with $200 Now

The last two years have been dominated by artificial intelligence (AI) actions.. The influx of spending on infrastructure and AI development, combined with investor excitement around the potential to change many industries, has pushed the stock prices of many companies into astronomical territory. It can be difficult to find a great company with a business bag at a fair price for less than $200.

But there could be a lot of growth when it comes to investing in AI. The market for AI hardware and software is expected to grow between 40% and 55% annually until 2027, according to analyst Bain.

While many stocks already have these high expectations in price, these three software and hardware manufacturers offer the opportunity to buy in their companies at a good value. And the best part is that each stock trades for around $200, making it accessible to almost anyone interested in getting started with AI stocks.

A circuit with the outline of a brain superimposed and the letters AI printed in it.
Image source: Getty Images.

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is the company behind Google. While many expected advances in AI from competitors to cut into Google’s business, Alphabet’s management has successfully incorporated AI into its core products.

The biggest change in research in the past year is the new overview of AI. If you’ve typed a question into Google’s search box in the past few months, you’ve probably seen AI-generated answers with links to their sources.

Management says the new feature increases engagement and satisfaction among users, as they find Google can answer more of their questions. Meanwhile, its advances in AI over the past 18 months have allowed it to reduce the cost of using generative AI to answer these questions by 90%, allowing it to roll out the feature globally.

The company is also using its AI capabilities to offer new ways to search the web. One product, Circle to Search, allows users to search for words or images on a web page while browsing on their Android smartphone and start a search. Google Lens makes searching the web as simple as taking a photo. Both have increased valuable search types such as product discovery and purchase.

Meanwhile, Google Cloud, Alphabet’s cloud computing division, has seen its revenue grow substantially as developers tap its computing for generative AI applications. Not only have revenues grown over the past two years, but they are also now producing significant operating profits for Alphabet. Google Cloud generated $1.9 billion in operating income last quarter, down from $270 million a year ago and a loss of $700 million in the third quarter of 2022.


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2024-12-29 23:45:00

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