Microsoft and Nvidia's AI Investments Fuel Growth and Lift Cloud Business
-
Microsoft has invested heavily in AI through its partnership with OpenAI, which is boosting its cloud business. Its cloud market share recently hit an all-time high of 24%.
-
Nvidia dominates the AI chip market with an estimated 90% market share. Its data center revenue now makes up the majority of total revenue.
-
Microsoft has a high PEG ratio of 2 but remains a strong long-term investment if you believe in its growth potential.
-
Nvidia has a more reasonable PEG of 1 and looks attractively valued for its growth expectations.
-
While these stocks have already provided massive returns, dollar-cost averaging to build a position can be a good approach versus going all in at once.