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Where Are The Best AI Investing Opportunities ?
The AI revolution presents opportunities to capitalize on long-term growth . By Todd Ahlsten
ARTIFICIAL INTELLIGENCE HAS EVOLVED FROM A futuristic concept to a real force , reshaping industries and redefining the way companies generate value . For investors , the AI revolution presents opportunities to capitalize on long-term growth and pursue strategies that make money today .
Generative AI — technology that ’ s capable of producing text , images , music and more — represents the latest leap in the landscape . But AI ’ s roots go back decades , built on the efforts of innovators such as Geoffrey Hinton , who recently won the Nobel Prize for his groundbreaking work laying the foundation for modern machine learning . Today , companies across sectors are deploying AI to streamline operations and reimagine their products and services . Investors willing to identify the right players can ride this wave of innovation .
As companies increasingly deploy the technology , the ability of artificial intelligence to harness unique , high-quality proprietary data has emerged as a critical differentiator — and a driver of competitive advantage for companies . The AI models them- selves risk becoming commoditized , but those companies that are able to use it to better take advantage of their own proprietary data will gain an edge — improving their customers ’ experiences , improving their own operational efficiency and driving new revenue streams .
Investors can perceive AI opportunities at companies by looking at the three main groups that stand to benefit :
Enablers : These are the infrastructure builders and technology innovators that make AI possible . A semiconductor manufacturer like Nvidia is a prime example . The company ’ s graphics processing units ( GPUs ) power many AI applications , from training generative models to enabling real-time analytics , and this has propelled its stock to record highs . Also benefiting will be cloud providers such as Amazon Web Services , Microsoft Azure and Google , which offer the computing power required for AI to flourish .
Providers : These companies develop software applications and tools that will greatly benefit from the use of AI . Salesforce , for example , uses the technology to refine its custom-
JANUARY / FEBRUARY 2025 | FINANCIAL ADVISOR MAGAZINE | 41