While the most common current examples of artificial intelligence (AI) are the large language models (LLM) like OpenAI’s ChatGPT and Microsoft’s (NASDAQ:MSFT) Copilot, the future of the technology is likely far more multi-faceted than question-and-answer chatbots. Moreover, the current involvement of various tech companies in the development of AI means that some future AI stocks have yet to reach their potential.
Companies that currently focus on applying the machine learning software capabilities of AI are more likely to have a broader impact on the tech industry, thereby generously growing their valuations. These companies are currently exploring new avenues for AI applications through research and development, as well as the launch of novel products.
Investors may want to keep a close eye on these currently broad tech companies that could become highly critical future AI stocks. As always, these companies have been selected on both the merits of their financial performance and their ability to provide long-term stability.
International Business Machines (IBM)
Understanding the several future-proof technologies that International Business Machines (NYSE:IBM) is currently developing is critical to capturing its potential among future AI stocks. Unlike other big tech names in the industry, IBM has always focused on advancing the technological edge for its customers’ benefit. As a result, investing in IBM is more like investing in a state-of-the-art laboratory always focused on the next revolutionary technology.
For investors looking to maximize their AI potential, IBM represents a synergistic combination of both computing technology and AI research. This stems from its advanced progress in the field of quantum computing alongside its expertise in large language models through its Watson platform.
While neither of these two components is a current major revenue source for IBM, should it continue to integrate them, it might be able to achieve a human-computer interface that enables its customers to directly interact with the Watson LLM to operate its highly complex supercomputers.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) has become arguably the most important company when it comes to AI data centers thanks to its cloud computing business unit, Amazon Web Services (AWS). For the company, its growth will come from the endless need for its servers and processing power that a future AI-driven tech industry will need.
As more and more companies and consumers adopt the technology, Amazon Web Services will likely see even more revenue growth. This will continue to propel the company’s share value over the years so long as demand for AI products increases.
As such, AMZN stock could be a safer play among AI stocks as it aims to dominate the computing infrastructure space necessary for AI services. Pair this ambition with a potential easy-on-AI approach from the next administration and AMZN stock seems like an even better investment for the next four years.
Apple (AAPL)
Recently, consumer tech giant Apple (NASDAQ:AAPL) announced a two-pronged approach to its entry into the artificial intelligence race. The company, which has largely focused on selling its products as high-quality and accessible renditions of technological trends, has now begun the process of integrating ChatGPT directly into its phones alongside its own interpretation of artificial intelligence which it calls “Apple Intelligence.”
Up until now, Apple was not part of the AI industrial revolution. It might not yet be a contributor on the level of Microsoft, but what it will achieve is bringing AI to the masses over time. Right now, the most common device all consumers around the world use is the smartphone, of which many are made by Apple.
As Apple devices improve and integrate with AI, AAPL stock will become one of the future AI stocks to keep a close eye on.
On the date of publication, Viktor Zarev did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
