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Investors are advised to consider tech giants Alphabet (NASDAQ: GOOG, GOOGL) and Microsoft (NASDAQ: MSFT) as prime options for capitalizing on the rapidly advancing artificial intelligence (AI) sector. Both companies have made significant investments and innovations, positioning themselves as leaders in AI development.
Alphabet’s subsidiary, DeepMind, has achieved notable breakthroughs, including AlphaGo, which defeated a world champion in Go, and AlphaFold, a major advancement in protein-structure prediction. The company’s Google Cloud platform offers a suite of AI services, trading at a forward earnings valuation of 23 times.
Microsoft has invested over $13 billion in OpenAI, enhancing its products like Bing and Microsoft 365 with AI capabilities. While its stock trades at a higher forward earnings valuation of 31.6 times, analysts anticipate double-digit revenue and earnings growth driven by its AI initiatives.
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