Three AI Stocks to Watch: Nvidia, Alphabet, and AI-Powered Cloud Computing Companies

Investors looking for AI stocks with more upside than Palantir Technologies may consider Nvidia, Alphabet, and three other companies. Nvidia's valuation remains reasonable despite a similar run, with analysts expecting 29% annual earnings growth. Alphabet's recent rise can continue, driven by positive developments in AI, cloud computing, and autonomous ride-hailing.

As the artificial intelligence (AI) build-out continues, investors seeking stocks with more potential than Palantir Technologies (PLTR) may find promising opportunities in Nvidia (NVDA), Alphabet (GOOGL), and three other companies. The AI market is expected to grow significantly in the coming years, with spending on AI projected to reach $4.8 trillion by 2033 [3].

Nvidia (NASDAQ: NVDA)
Nvidia has been a top AI stock pick for its graphics processing units (GPUs), which are crucial for training and deploying complex AI models. The company's recent decision to allow the export of its GPUs to China could provide a significant boost to its revenue growth. While Nvidia's stock has seen substantial gains, analysts expect the company to maintain double-digit annual growth rates for years to come, making it a relative bargain for patient investors [1].

Alphabet (GOOGL)
Alphabet's recent rise can continue, driven by positive developments in AI, cloud computing, and autonomous ride-hailing. The company's AI capabilities, including its work on large language models and autonomous vehicles, position it as a key player in the AI market. Alphabet's stock has seen significant appreciation in recent months, but the company's long-term growth prospects remain strong [2].

Other Promising AI Stocks
1. Taiwan Semiconductor (NYSE: TSM)
Taiwan Semiconductor is the world's leading chip foundry, manufacturing chips for companies like Nvidia. The company expects AI-related revenue to grow at a 45% compounded annual growth rate (CAGR) for the next five years, with its overall CAGR nearing 20% [1].

2. Digital Realty (NYSE: DLR)
Digital Realty is a real estate investment trust (REIT) specializing in data centers. Its real estate operations focus on building facilities worldwide to support the growing demand for AI, providing both growth and a 2.7% dividend yield [1].

3. Amazon (NASDAQ: AMZN)
Amazon's cloud computing platform, Amazon Web Services (AWS), is the market share leader in its space. AWS provides companies with tools to deploy and build generative AI-powered applications, experiencing rapid growth with revenue increasing 17% in its most recent quarter. AWS accounted for 63% of Amazon's total Q1 profits, indicating the company's focus on cloud computing [1].

Investors should carefully consider their risk tolerance and investment goals before making any decisions. While these stocks offer significant growth potential, they also come with inherent risks.

References:
[1] https://finance.yahoo.com/news/4-artificial-intelligence-ai-stocks-093000702.html
[2] https://www.aol.com/2-artificial-intelligence-ai-stocks-141500484.html
[3] https://www.aol.com/2-artificial-intelligence-ai-stocks-141500484.html