AI Spending Surge: One Stock to Buy Before 2028

Artificial Intelligence (AI) is transforming industries worldwide, and the spending on AI technologies is set to skyrocket in the coming years. According to a new forecast from the International Data Corporation (IDC), global spending on AI will more than double by 2028, reaching a staggering $632 billion. This article explores the AI spending landscape and highlights one magnificent stock to buy right now before this monumental growth happens.

The AI market is segmented into various technology categories, with software being the largest, representing over half of the overall market for most of the five-year forecast. AI-enabled applications and AI platforms are expected to drive this growth, followed by AI hardware and IT and business services.

IDC's report also highlights the industries expected to spend the most on AI, with financial services leading the way. Banking, in particular, is anticipated to account for more than 20% of all AI spending. The next largest industries are software and information services, followed by retail. These three industries combined will provide roughly 45% of all AI spending over the next five years.

One stock that stands out in this AI spending surge is Microsoft Corporation (MSFT). Microsoft has been doubling down on AI spending, with AI-related investments representing nearly all of its total capital expenditures. The company's multi-year investment of $10 billion in OpenAI and ongoing partnership with the company demonstrate its commitment to AI growth.

Microsoft's Azure AI platform has been growing at an accelerated rate, driven by increasing demand and deployment of AI technologies across many industries. As AI spending continues to rise, Microsoft's position as a leading AI platform provider is expected to drive significant growth and value for shareholders.

In conclusion, the AI spending surge is a compelling investment opportunity, with Microsoft Corporation being one stock to watch closely. As the global AI market grows at a staggering 29% annual rate, Microsoft's strategic investments in AI platforms and partnerships position it well to capitalize on this monumental growth. Investors should consider adding MSFT to their portfolios before this growth materializes in the coming years.