2 Artificial Intelligence (AI) Stocks to Buy

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In August 2023, Nvidia, a company that makes computer parts, saw its stock price reach a record high. People really want its data center graphics cards because they’re excellent for things like artificial intelligence (AI). But there’s a problem – there might not be enough chips to meet this demand. This could affect Nvidia’s growth in the short term. So, if you’re thinking of investing your money, it might be a good idea to look at other companies. Microsoft and Amazon are two such companies that could be worth considering. In this article, we’ll explore why.

  1. Microsoft:
    • Microsoft is a huge tech company. Their stock has gone up by 39% this year.
    • Even though Microsoft made a lot of money in the last few months, some investors are worried that their AI services aren’t growing fast enough.
    • But here’s the exciting part: Microsoft has invested $13 billion in a company called OpenAI, which makes a smart computer program called ChatGPT.
    • Thanks to this investment, Microsoft gets special rights to use OpenAI’s big computer programs. They’re using these programs to make their products like Bing, Microsoft 365, and Azure even smarter.
    • Azure, Microsoft’s cloud platform, is the only place where you can find OpenAI’s big programs. So, Microsoft could make a lot of money as more people start using these programs.
    • In the last three months, 11,000 customers used Azure’s OpenAI service. That’s a big jump from 2,500 customers just three months before.
    • Microsoft is also planning to charge $30 a month for a new tool called Microsoft 365 Copilot. This tool helps people use Microsoft 365 better. It could bring in more money from existing customers and attract new ones.
    • Right now, 382 million people use Microsoft’s Office 365 suite. Some of them might switch to the more expensive Microsoft 365 thanks to Copilot.
    • Microsoft is doing well in other areas too, like cloud computing, cybersecurity, and business tools. The cloud computing market is expected to get a lot bigger, and Microsoft’s Azure platform is a big player with a 22% market share.
    • Cybersecurity is also becoming a big deal, and Microsoft is getting into that too.
    • So, even though Microsoft’s stock is a bit expensive right now, it’s a strong choice for investors, especially if they plan to invest over time.
  2. Amazon:
    • Amazon is another giant company, and its stock has gone up a lot this year, 61% to be exact. That’s the most it’s gone up in 20 years!
    • This is surprising because in 2022, Amazon had problems with higher costs for workers and shipping. Their stock price even fell by almost half.
    • But Amazon is doing something smart – they’re putting a lot of money into AI. This includes software and computer parts, like chips.
    • Amazon is using its big share of the cloud computing market, about 32%, to offer more AI services through Amazon Web Services (AWS).
    • One of these services is called Amazon Bedrock. It lets people create their own smart computer programs using Amazon’s data and big computer programs on AWS.
    • Amazon has been working on AI for a long time. They have things like Amazon SageMaker, Amazon Rekognition, and Alexa. They’ve even made their own computer chips for AI.
    • These efforts are paying off, and Amazon is getting lots of customers for its AI stuff.
    • Big data, machine learning, and AI are making the cloud computing market grow. AWS made $22.1 billion in the second quarter, which is a lot, especially when businesses are trying to save money.
    • Amazon’s online shopping business is also getting better. Their advertising money went up by 22% in the second quarter.
    • They have a lot of data about what people buy, lots of sellers on their website, and they’re good at AI. So, advertising could become a big source of money for them.
    • Amazon’s stock price is still high, even after going up so much this year. But because they’re good at AI, have a lot of different businesses, and other good things going for them, it could still be a good choice for investors.


  • Nvidia might be doing well, but there’s a risk of not having enough computer chips to meet the demand.
  • Instead of putting all your money in Nvidia, consider Microsoft and Amazon.
  • Microsoft is investing in AI and has special access to big AI programs from OpenAI. They’re also doing well in other areas like cloud computing and cybersecurity.
  • Amazon is growing despite some problems last year. They’re putting a lot of money into AI and have a big share of the cloud computing market. Their advertising business is also doing well.
  • Both Microsoft and Amazon could be good options for investors, even though their stock prices are high. If you plan to invest over time, they might be worth considering.

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