Big Tech Stocks Surge on AI Excitement, Analysts See Microsoft, Amazon and Alphabet Reaching $3 Trillion Before Apple
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After a dismal 2022, the stock market has rebounded, fueled partly by excitement over AI like ChatGPT. Stocks of AI leaders like Nvidia, Meta, Tesla, Amazon, Microsoft, Apple, and Alphabet are up 50-229%.
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Apple was the first $1 trillion and $2 trillion company, but one analyst believes Microsoft, Amazon, and Alphabet will leapfrog Apple to $3 trillion based on their cloud and AI offerings.
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Microsoft, Amazon, and Alphabet are integrating powerful AI tools into their popular products and cloud platforms to drive growth. Their cloud dominance also positions them to benefit greatly from AI adoption.
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While Apple also stands to gain from AI, its focus is ensuring iPhones stay relevant versus the Big 3's strategy of using AI to increase cloud stickiness and customer lifetime value.
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Even conservative estimates see trillions in value creation from AI. With valuation multiples below Apple, Microsoft, Amazon and Alphabet have room for further upside.