3 Bulletproof Stocks to Protect Your Portfolio From Tech Turmoil

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  • The following three stocks have significantly emphasized leveraging AI to enhance operational efficiency across their respective businesses.
  • Amazon (AMZN): Its initiative to separate its stores’ fulfillment and transportation networks into regions enhances cost efficiency while maintaining customer satisfaction.
  • Microsoft (MSFT): Its cloud computing platform, Azure, is gaining market share with a growing number of customers migrating workloads and adopting new applications.
  • Alphabet (GOOG): Alphabet’s strategic focus on AI advancements is evident through product integrations such as PaLM 2 and Gemini, enhancing user experience and engagement.
Stocks for Tech Protection - 3 Bulletproof Stocks to Protect Your Portfolio From Tech Turmoil

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The quest for stability and growth always leads investors to seek refuge in the unshakable foundations of fundamentally solid stocks. Here, the article lists three tech giants that aren’t just weathering the economic uncertainties but also thriving amidst them. What is the key to their strength? An unwavering focus on innovation, operational excellence, and artificial intelligence integration. This has led to the rise of stocks for tech protection.

The first one has a relentless pursuit of enhancing customer experiences and has reshaped the retail and cloud computing spheres. It continues to expand its dominion, and its dedication to sustainability and innovation echoes its founder’s long-term vision.

While the second one embraces cloud technology, staying ahead of the curve. With successes across enterprise solutions and an ever-expanding ecosystem, it stands tall as a pillar of resilience.

Finally, the third recalibrating of its models, enhancing strategic forays into cloud services, ads, and soaring engagement across its products, cements its reputation as a trailblazer poised to navigate the tech landscape’s tempests.

Amazon (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock
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Amazon (NASDAQ:AMZN) strategically focuses on improving customer experiences, optimizing operational efficiency, and driving innovation across its various businesses.

Amazon’s initiative to transition its stores’ fulfillment and transportation networks into separate regions has yielded significant improvements. This regionalization strategy has led to a 20% reduction in package handling, a 19% reduction in delivery miles, and an over 1,000 basis point increase in regional deliveries. As a result, it enhances cost efficiency while maintaining customer satisfaction.

Additionally, Amazon’s efforts to bring fulfillment centers closer to customers have reduced transportation costs and delivery times. Closer proximity decreases travel distances, benefits the environment, and improves logistics efficiency.  

Amazon Web Services (AWS) maintains a dominant position in cloud infrastructure with a substantial partner ecosystem, functional breadth, and operational excellence. AWS’s 12% YoY growth demonstrates its resilience and adaptability even during uncertain economic conditions, underscoring its reliability and value to customers. This makes it one of those stocks for tech protection.

Remarkably, Amazon is democratizing access to generative AI through three layers: large language models as a service, AI applications, and AWS offers a comprehensive stack for generative AI. It fosters innovation and enables companies of all sizes to harness the power of AI models and transform industries.

Amazon’s diverse business portfolio, including Amazon Business, Amazon Pharmacy, and Whole Foods, is growing and provides customers with added value, convenience, and cost savings. For instance, Amazon’s grocery business, including Whole Foods and Amazon Fresh, continues to expand while improving profitability. This is achieved by increasing speed, lowering costs, and introducing new store formats. These investments are paying off by aligning with consumer demands.

Finally, Amazon invests heavily in innovation across its portfolio, from Kuiper (satellite internet) and Zoox (autonomous vehicles) to Alexa (voice assistant). These emerging areas offer substantial growth opportunities, aligning with Amazon’s long-term vision.

Microsoft (MSFT)

The Microsoft logo outside a building representing MSFT stock.
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Core priorities of Microsoft (NASDAQ:MSFT) include maximizing customer value through the Microsoft Cloud, leading in AI integration, and driving operational efficiency.

Microsoft’s Azure is gaining market share in the cloud computing domain, as evidenced by a growing number of customers migrating workloads and adopting new applications. Azure Arc has demonstrated strong momentum with a 150% YoY increase in customers like Carnival (NYSE:CCL) and Domino’s Pizza (NYSE:DPZ).

Additionally, Azure AI is driving innovation in AI-first workloads. It is highlighted by partnerships with Meta (NASDAQ:META) and OpenAI, exemplifying Microsoft’s prowess in pioneering AI technology. The success of Microsoft Cloud for sustainability and nuance DAX in healthcare reinforces the company’s industry-tailored approach.

Notably, the success story extends to the Azure OpenAI Service. It boasts over 11,000 industry-diverse organizations using the service, including IKEA and Flipkart. The collaboration with Mercedes-Benz Group (OTCMKTS:DMLRY) and Moody’s underscores the practical integration of AI capabilities, enhancing in-car voice assistants and employee productivity.

Another stronghold is development tools (Azure AI Studio, GitHub Copilot, and VS Code). Over 27,000 organizations, including Airbnb and Dell, rely on GitHub Copilot, reflecting its growing significance in coding workflows. Further, Microsoft’s business applications impact across industries, with Dynamics 365 exceeding $5 billion in revenue. All in all, it’s one of those stocks for tech protection.

Windows 11’s growth and Azure Virtual Desktop and Windows 365 highlight Microsoft’s enterprise transformation approach. Windows Copilot’s introduction further enhances the user experience. Over a million organizations adopt Microsoft’s security solutions, with the Security Copilot introducing AI-powered SecOps capabilities.

Finally, LinkedIn’s revenue surge and AI-powered initiatives emphasize its role in connecting professionals and enhancing authenticity. The ongoing Activision Blizzard (NASDAQ:ATVImerger and an impressive lineup of games underline Microsoft’s commitment to the gaming industry, with Xbox Game Pass and Game Pass Core augmenting the appeal.

Alphabet (GOOG)

Alphabet Inc. (GOOG, GOOGL) and Google logos seen displayed on smartphones. The Google stock split is happening today.
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Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), based on its strategic moat on AI advancements, diversified product offerings, and growing cloud services, may continue to boost value creation.

Further, Alphabet’s emphasis on AI is evident through its integration of AI into various products. With advancements like PaLM 2 and Gemini, multimodal models that enhance the user experience, Alphabet is enhancing its core offerings, especially the search engine.

Also, Alphabet is leveraging AI to enhance creativity and productivity, as exemplified by its conversational AI experiment, Bard. This AI-driven tool is gaining traction among coders and language enthusiasts. Integrating AI into Google Cloud and Workspace, like Duet AI, aids collaboration and insight generation, catering to a broad user base.

Remarkably, Alphabet’s strategic expansion into AI services extends to Google Cloud, which reported impressive Q2 revenue of $8 billion, indicating strong growth. The company’s AI-optimized infrastructure and generative AI models have attracted numerous customers, demonstrating its impact across industries. Therefore, this expansion also contributes to upselling AI capabilities to existing Google Workspace customers, increasing revenue streams and customer value.

Notably, YouTube continues to thrive, with YouTube Shorts capturing over 2 billion logged-in users monthly and growing engagement on connected TV screens. Services like YouTube Music and Premium, YouTube’s subscription services drive revenue diversification and growth. This helps make it one of those stocks for tech protection.

Moreover, Alphabet’s hardware endeavors, such as the Pixel devices, further its innovative pursuits. Android 14’s incorporation of generative AI demonstrates the company’s commitment to personalization and the user experience.

Lastly, beyond product innovation, Alphabet’s cost-effective operation strategies and efficient resource allocation contribute to its growth. As indicated by its data center machine efficiency progress, the company’s focus on sustainability aligns with its long-term vision.

As of this writing, Yiannis Zourmpanos was long GOOG. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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