Key Points
Alphabet (NASDAQ: GOOGL) and Meta Platforms (NASDAQ: META) are identified as leading tech stocks poised for significant growth in 2023. Alphabet is leveraging its advanced artificial intelligence (AI) technology with its Gemini model, which is integrated into various products including Google Search. This has contributed to a 34% increase in its Google Cloud revenue last quarter, with estimates suggesting potential deployments of 5 million tensor processing units (TPUs) by customers in 2027, translating to around $13 billion in yearly revenue for every 500,000 chips deployed.
Meanwhile, Meta Platforms is enhancing its digital advertising effectiveness through AI-driven algorithms on Instagram and Facebook, leading to a 26% revenue surge last quarter. The company reported a 14% increase in ad impressions and a 10% rise in ad prices. Meta is also exploring monetization opportunities on its WhatsApp and Threads platforms, with WhatsApp recently surpassing 3 billion monthly users.
