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Key Points
The artificial intelligence (AI) industry is rapidly expanding, presenting significant investment opportunities, although the market remains volatile and predominantly benefits a few tech giants. As the market matures, it is expected to become more fragmented, offering long-term investors potential growth by focusing on quality businesses within this space.
Company Updates
Alphabet (NASDAQ: GOOGL) has over 2 billion daily users and continues to see growth driven by AI tools such as Gemini, which enhance ad performance and optimize search queries. The company generated tens of billions in profits annually, trading at a forward P/E ratio of around 30, reflecting its growth potential. Furthermore, Alphabet’s Gemini 3 AI model showcases significant advancements in AI capabilities.
GitLab (NASDAQ: GTLB) reported a revenue of $236 million in the last quarter, a 29% year-over-year increase, driven by a growing customer base and a dollar-based net retention rate of 121%. The company is enhancing developer productivity with its AI-enabled features and integrating AI across its operations. GitLab’s stock has experienced a downturn, presenting a potential buying opportunity for long-term investors.
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