AI Outbreak in the Stock Market: 6 AI Stocks to Watch

In the current era, artificial intelligence (AI) has become a major force driving economic growth and technological advancement. Many investors are increasingly paying serious attention to AI-related stocks due to their potential to generate attractive long-term returns. This article provides detailed analysis of leading companies and various investment options to help you make informed and smart investment decisions.

Industry Leaders: Major Companies in the AI Sector

Nvidia Corporation (NVDA) – Pioneering Graphics Chips

Founded in 1993, Nvidia is at the forefront of innovation in the AI era. Not only does Nvidia produce graphics chips for gaming, but it also provides processing technology for machine learning and big data analytics.

Key products include:

• A100 Chips and CUDA Toolkit: Designed specifically for AI processing and highly sought after in data centers worldwide
• HGX Platform: For large-scale, complex data processing
• GeForce RTX Chips: For gaming and professional rendering
• Drive Platform: Developing technology for autonomous vehicles

Market data shows NVDA stock at approximately $124.92, with various target price estimates.

Microsoft Corporation (MSFT) – Integrating Cloud Services with AI

Founded in 1975 by Bill Gates and Paul Allen, Microsoft evolved from a software provider to a leader in cloud services with Azure, competing directly with Amazon Web Services and Google Cloud.

Microsoft’s significance in AI is reflected in:

• Azure AI Services: Simplifying AI development and deployment for businesses of all sizes
• Investment in Machine Learning Technologies: Long-term projects and deep research
• Xbox Game Pass: Cloud gaming service utilizing AI for content curation
• Modern Microsoft Office: Incorporating AI features into document processing

MSFT’s current price is around $416.06, supported by strong analyst ratings.

Advanced Micro Devices Inc (AMD) – Challenger in Processing Chips

Founded in 1969, AMD remains a key player in high-performance CPU and GPU manufacturing. Its AI development efforts span multiple areas:

• EPYC Server Chips: Used in data centers with AI processing capabilities
• Radeon GPUs: For gaming and scientific computation
• Embedded Solutions: For IoT systems and industrial applications

Current AMD stock is approximately $170.90, with positive growth prospects.

Alphabet Inc (GOOGL) – Architecting the Future of AI

Founded in 1998 by Larry Page and Sergey Brin, Alphabet operates through various AI-related divisions:

• DeepMind: Leading AI research organization tackling major scientific challenges
• Waymo: Autonomous vehicle technology testing in major cities
• Google Cloud: Growing cloud services with AI integration
• Verily: Developing AI-powered healthcare systems

GOOGL’s stock is roughly $167.06, with high analyst valuation.

Local Investment Options: Promising Thai AI Stocks

Ditto (Thailand) PCL (DITTO) – Modern Telecommunications Provider

Ditto is a key player in Thailand’s telecom and tech sector, specializing in connectivity and broadband services. The company plans to expand significantly by:

• Deploying 5G Networks: Covering urban and rural areas
• Green Initiatives: Implementing environmentally friendly practices
• Digital Service Enhancements: Cloud solutions and cybersecurity

Current share price is THB 18.70, with potential mid-year growth.

TBN Corporation PCL (TBN) – Digital Transformation Pioneer

TBN is a pioneer in comprehensive digital system design and development in Thailand, focusing on digital transformation consulting. Its roles include:

• Custom Product Development: Tailored to client needs
• User-Centric Design: Prioritizing UX and engagement
• Low-code Platforms: Using AI to make programming more accessible

TBN’s current price is THB 6.45, with relatively stable price movements.

Pros and Cons of Investing in AI Stocks

Why Are AI Stocks Attractive?

Growth Trends: Leading research institutions project the global AI industry to reach $5.54 trillion by 2026, up from $383 billion in 2021. This growth reflects widespread acceptance and demand for AI technology worldwide.

Advantages of Investment:

• High Return Potential: Successful AI companies often outperform other sectors
• Broad Applications: AI is used in healthcare, transportation, finance, manufacturing, and more
• Continuous Innovation: Companies must constantly develop new technologies, creating investment opportunities
• Flexibility to Adapt: AI firms can quickly respond to market changes

Risks to Consider:

• Rapid Technological Changes: Companies unable to keep pace risk falling behind competitors
• Legal and Regulatory Uncertainty: Evolving laws may impact business operations
• Intense Competition: New entrants increase market rivalry
• Security and Privacy Risks: AI use involves data privacy and protection concerns

Investment Strategies

Through Thai Securities Firms:

Investors can contact leading local brokers offering international stock trading services, choosing between direct stock ownership or ETFs based on their preferences.

Via Foreign Brokers:

Foreign brokers offer convenience and flexibility, with features such as:

• Quick account opening (sometimes within minutes)
• Low minimum deposits (as low as $50)
• Leverage options to maximize capital efficiency
• Ability to trade both long and short positions

Additional Recommendations

When investing, utilize technical analysis to identify optimal entry points, study support and resistance levels, calculate moving averages, and monitor other indicators to avoid buying at risky prices.

Summary

AI-related stocks today present high-potential investment opportunities for those confident in the future of this technology. With promising earnings prospects and global industry growth, companies like Nvidia, Microsoft, AMD, Google, along with Thai firms Ditto and TBN, play vital roles in driving innovation.

However, risks remain, and investors should conduct thorough research, employ chart analysis, and stay updated on market news. Planning investments carefully and timing entries appropriately can maximize benefits from the expanding AI industry in the coming years.