Interest in artificial intelligence (AI) surged following the release of OpenAI’s ChatGPT, which demonstrated significant advancements in human-like dialogue generation. As a result, tech companies like Nvidia and Amazon reported stock gains of 228% and 45%, respectively, over the past year. The AI market is projected to expand at a compound annual growth rate of 37% until at least 2030.
Intel (NASDAQ: INTC), historically a leader in chip manufacturing, has seen stocks decline by 3% over the last decade but is now pivoting towards the semiconductor foundry market, expected to grow to $232 billion by 2032. The company is investing in U.S. factories, though it recently delayed construction of a plant in Israel. Apple (NASDAQ: AAPL) has also entered the AI space with plans to launch its Apple Intelligence platform in September, following a 12% stock spike after its announcement during the Worldwide Developer Conference.
Key metrics: Intel’s shares are trading at a forward price-to-earnings ratio of 28, compared to Nvidia’s 48 and AMD’s 46. Apple’s forward P/E ratio stands at 33, which is comparatively lower than those of Microsoft and Amazon. As AI technology continues to develop, these companies may offer significant investment opportunities.
