Top 2 AI Stocks to Load Up on in July

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The AI market has experienced a surge in early 2023, revitalizing the tech sector after a difficult year in 2022. OpenAI’s launch of ChatGPT sparked investor interest and led to an 88% increase in the Nasdaq-100 Technology Sector index since the beginning of the year. With the AI industry projected to reach nearly $2 trillion in spending by the end of the decade, companies are increasingly investing in generative technology to meet the growing demand for AI services and chips.

Despite the rapid growth in the AI sector, there are still investment opportunities to be explored. Two AI stocks that stand out in July are Intel and Alphabet. Intel, although overshadowed by rivals like Nvidia and AMD, has made significant changes to its business model, focusing on AI and manufacturing. The introduction of Gaudi 3 AI accelerators and the expansion of chip plants across the United States position Intel for a potential turnaround in its fortunes. Additionally, Intel’s low price-earnings ratio suggests that its shares offer value for investors.

Alphabet, on the other hand, is competing with cloud giants like Microsoft and Amazon in the AI sector. With the third-largest market share in cloud computing, Alphabet is rapidly catching up to its competitors. The company’s financial performance, including a 15% revenue growth and strong cloud revenue growth, makes it an attractive investment option. Alphabet’s lower price-to-earnings and price-to-free cash flow ratios indicate that it could be one of the best-valued stocks in the AI sector.

In conclusion, both Intel and Alphabet present compelling investment opportunities in the AI sector. Intel’s strategic shifts and Alphabet’s strong financial performance make them worth considering for investors looking to capitalize on the growth potential of AI technology. With the AI market expected to continue expanding in the coming years, these companies are well-positioned to benefit from the increasing demand for AI services and technologies.

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https://www.fool.com/investing/2024/07/03/artificial-intelligence-a1-stock-buy-july-goog/