Investors eyeing long-term wealth in the realm of artificial intelligence (AI) may find solace in the notion that significant gains can bloom from seeding just $1,000 in the right stocks.
Highlighted by three astute Motley Fool contributors, Microsoft, Qualcomm, and Meta Platforms stand tall as compelling contenders in the AI landscape, each offering distinct value propositions to savvy investors.
Microsoft’s AI Advantage with OpenAI Partnership
Justin Pope (Microsoft): The partnership between Microsoft and OpenAI birthed in 2019 has since evolved into a formidable AI alliance, bolstering Microsoft’s software suite with OpenAI’s technology. This integration, coupled with channeling OpenAI’s compute requirements through Microsoft’s Azure cloud platform, has fortified Microsoft’s competitive edge in the AI arena. As OpenAI ventures beyond ChatGPT to ventures like video creation engine Sora and humanoid robotics, the prospects for Microsoft’s enduring success appear robust.
MSFT data by YCharts
Finding Value in Qualcomm’s AI Potential
Will Healy (Qualcomm): While Nvidia commands the limelight in the AI chip sector, Qualcomm’s Snapdragon 8 Gen 3 offers a cornucopia of AI capabilities, from enhancing images to delivering high-fidelity audio experiences on smartphones. Extending beyond smartphones, Qualcomm’s foray into IoT, automotive chips, and laptop processors signals a broader AI footprint. Despite facing financial headwinds, Qualcomm’s favorable valuation beckons investors to consider its AI prowess as a gateway to potential returns.
Meta Platforms: A Hybrid Gem in AI Innovation
Jake Lerch (Meta Platforms): Meta’s enigmatic blend of cash cow stability and tech start-up fervor paves the way for a unique investment proposition. The company’s robust advertising revenue stream — predominantly from Facebook, Instagram, and WhatsApp — harmonizes with its substantial AI research investments. Embracing Nvidia’s cutting-edge H100 chip for AI training underscores Meta’s commitment to innovation. As Meta navigates towards perfecting its metaverse and developing AGI, investors are poised to reap the rewards of its dual-genre allure.
Where to invest $1,000 right now
Unveil the insights of our analyst team with a curated selection of the 10 best stocks for astute investors, including Microsoft and other hidden gems that might be flying under your radar.
*Stock Advisor returns as of March 21, 2024
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Jake Lerch has positions in Nvidia. Justin Pope has no position in any of the stocks mentioned. Will Healy has positions in Advanced Micro Devices and Qualcomm. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, and Qualcomm. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
