Nvidia Leads Pack of Tech Giants Betting Big on AI and Its Trillion-Dollar Potential
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Nvidia dominates the AI chip market with around 90% market share. Its hardware and software ecosystem helps customers deploy AI models, making it hard to abandon.
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Amazon Web Services is the leading cloud platform. It can cross-sell AI products and services to its over 2 million business customers. Amazon also has ecommerce and advertising as safety nets.
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Tesla is investing heavily in AI for full self-driving software and humanoid robots. Success isn't guaranteed but Tesla has strong leadership in EVs and energy even without advanced AI.
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The recipe for "forever" AI stocks includes dominant business models, strong balance sheets, tremendous cash flows, and using AI to improve already great companies.
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AI is forecasted to create trillions in economic value over coming decades. It should be a good sector for long-term focused investing.