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1. Amazon
Amazon (NASDAQ: AMZN) is making significant advancements in AI within its e-commerce and cloud computing divisions. In e-commerce, AI is utilized to enhance operations, such as optimizing delivery routes for packages. In cloud computing, Amazon offers a range of AI products and services through its Amazon Web Services (AWS) unit, which has achieved a $115 billion annual revenue run rate due to its focus on AI. AWS provides customers with various AI solutions, from basic chips to fully managed services like large language models tailored to specific needs. Additionally, AWS develops AI applications, including Amazon Q, an AI assistant for software development. Amazon also offers its own cost-effective chip line named Trainium, which is more budget-friendly for cloud computing compared to other options available. With a strong customer base, AWS is well-positioned to attract customers seeking AI solutions. Trading at 36 times forward earnings estimates, Amazon presents an attractive entry point for long-term investors.
2. Meta Platforms
Meta Platforms (NASDAQ: META), known for its social media platforms like Facebook, Messenger, WhatsApp, and Instagram, has also emerged as a key player in AI. The company has developed its own large language model, Llama, and is pursuing ambitious AI objectives that require substantial investment. CEO Mark Zuckerberg has emphasized the importance of aggressive spending to achieve the company’s AI goals, with plans to invest up to $65 billion in infrastructure and expand its AI teams. Meta aims to deploy over 1.3 million graphics processing units (GPUs) by the year-end to support its AI initiatives, including the development of an AI assistant for users. This AI-driven focus could bolster user engagement on Meta platforms, leading to increased advertising revenue. Meta’s AI capabilities could also pave the way for new products, services, and revenue streams. Trading at 28 times forward earnings estimates, Meta presents an appealing opportunity for investors looking to capitalize on its long-term growth story.
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