Invest in long-term AI stocks: Meta, Qualcomm, Amazon
The stock market is experiencing increased volatility due to uncertainty in economic policy and global issues. Recently, the S&P 500 fell into a correction, while the tech-heavy Nasdaq Composite has dropped about 12% from its peak. Despite a smooth rise in 2023 and 2024, market downturns can be normal and healthy. It's important for investors to focus on long-term growth, especially in sectors like artificial intelligence (AI). Experts believe that AI will play a significant role in stock market performance over the next decade. They highlight three companies: Meta Platforms, Qualcomm, and Amazon, as potential winners. Each company has made strategic moves to capitalize on AI technology. Meta Platforms has put a lot of effort into AI, particularly with its open-source model called Llama. This approach has led to over a billion downloads, setting the stage for future monetization. The company is also investing heavily in infrastructure to support its AI ambitions. With its social media apps growing, Meta's advertising revenue helps fund these projects, promising strong potential for future earnings growth. Qualcomm is shifting its focus to AI technology with its Snapdragon processors aimed at smartphones. Although it faced challenges in recent years, its recent innovations are driving revenue growth. The company is also exploring opportunities in the Internet of Things and the automotive industry, which could significantly expand its market share. Qualcomm's current valuation suggests it may be an attractive investment as demand for AI technology increases. Amazon is leveraging its position as a leading cloud services provider to maximize its AI potential. The company is investing heavily in Amazon Web Services to maintain its market dominance and is working on various AI initiatives. Additionally, Amazon uses AI to improve its e-commerce operations, enhancing customer experiences and operational efficiency. These efforts could lead to increased profitability in the long run. Overall, as AI continues to evolve, investors are encouraged to consider these companies for potential long-term gains.