Nine companies boast market capitalizations of over $1 trillion, with artificial intelligence (AI) being a common thread among them. Dan Ives, an analyst at Wedbush Securities, predicts these tech giants will reach $4 trillion valuations in 2025.
Leading the list are Apple, Microsoft, and Nvidia, which Ives forecasts will benefit from AI tailwinds. Apple’s new “Magnificent Seven” software aims to leverage ChatGPT across its ecosystem, while Microsoft has rapidly integrated AI enhancements across its cloud computing infrastructure. Nvidia, with its strong influence in the AI movement, is expected to maintain its momentum.
Ives expects a significant upgrade cycle among iPhone users and attributes growth to Azure Cloud platform’s 33% increase, driven by AI services. However, he notes that unmet demand for cloud capacity will drive Azure’s growth. Nvidia’s next-generation Blackwell architecture has created high demand for its new hardware, with reported sales sold out for the next year.
These tech giants are benefiting from several tailwinds that could lead to significant upside for patient investors.
Source: https://www.fool.com/investing/2024/12/18/meet-the-3-artificial-intelligence-ai-stocks-dan-i