The AI sector is rapidly expanding as technology advances, driving interest in AI stocks among investors. Companies in this sector develop or use artificial intelligence to enhance various applications, from data analysis and logistics to customer service and automation. This field is not just limited to tech giants. It also includes startups and mid-size companies making significant strides in AI technology.
Investing in AI stocks offers the potential for substantial returns due to the growing reliance on AI solutions across industries. These stocks are often associated with innovation. With that, they can benefit from the increased efficiency and new capabilities AI brings to the market. However, the AI sector can be volatile, with stocks reacting sharply to technological changes, regulatory news, or competitive pressures.
While the prospect of high returns is attractive, investors should be aware of the risks. AI technology is complex and rapidly evolving, which can lead to uncertainties about the future profitability of companies in this sector. Also, as AI becomes more integrated into critical applications, these companies may face stringent regulatory scrutiny. Investors should consider these factors carefully when thinking about buying AI stocks, balancing potential growth against possible risks. Taking this into consideration, here are two blue-chip AI stocks to watch in the stock market in June 2024.
AI Stocks To Watch In June 2024
- Microsoft Corporation (NASDAQ: MSFT)
- Alphabet Inc. (NASDAQ: GOOGL)
Microsoft (MSFT Stock)
To start, Microsoft Corporation (MSFT) is a technology company that develops, licenses, and supports a wide range of software products, services, and devices. Known for its Microsoft Windows operating systems and Microsoft Office suite, the company also offers cloud solutions through its Microsoft Azure platform, and gaming systems, notably the Xbox series. Microsoft’s diversified business also extends into personal computing, artificial intelligence, and digital services.
Earlier this month, Microsoft announced a significant $3.3 billion investment in Wisconsin. This investment focuses on boosting artificial intelligence innovation and economic growth in the state. The initiative includes the construction of a new cloud computing and AI infrastructure. As well as launching the first manufacturing-focused AI co-innovation lab, and an AI skilling initiative for over 100,000 residents.
Looking at the past month of trading action, shares of MSFT stock have increased by 5.00%. Meanwhile, as of Thursday’s closing bell, Microsoft stock finished the trading day at $414.67 a share.
[Read More] Best Stocks To Invest In 2024? 3 Blue Chip Stocks In Focus
Alphabet (GOOGL Stock)
Next up, Alphabet Inc. (GOOGL) is the parent company of Google and several former Google subsidiaries. It operates through various segments including products such as search, ads, YouTube, and Google Cloud. Alphabet is known for its significant investments in technology, especially in areas like machine learning, cloud computing, and artificial intelligence.
Last month, Alphabet reported a beat for its Q1 2024 financial and operating results. In detail, the company notched in first-quarter 2024 earnings of $1.89 per share, on revenue of $80.54 billion. This is in comparison to Wall Street’s consensus estimates for Q1 2024 which were earnings estimates of $1.49 per share, on revenue of $78.61 billion. Moreover, Alphabet also reported a 15.41% jump in revenue, on a year-over-year basis.
In the last month of trading, shares of Alphabet stock have gained by 5.03%. While, as of Thursday’s closing bell, GOOGL stock closed the day trading at $172.11 per share.
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!!
