The hype surrounding artificial intelligence has pushed chipmaker Nvidia’s stock price to record highs, making it one of the most valuable companies in the world. While Nvidia has captured much of the attention, other companies in the AI supply chain are also experiencing rapid growth. In the past 18 months, some hardware-focused firms have seen significant gains in their stock prices as the implementation of AI technology in large organizations drives business for leading software companies.
The AI investment craze has drawn comparisons to the dot-com bubble of the late 1990s, where internet start-ups experienced massive but short-lived gains before crashing. However, analysts believe that this time around, the focus is on a smaller number of established technology firms, and the interest in AI is backed by significant corporate spending happening now. According to Chirag Dekate, a vice president and analyst at Gartner, the impact of generative AI is not as widespread as initially thought, with only a few entities providing the foundational technology.
Despite this, there are several publicly traded companies capitalizing on the surge in artificial intelligence investment. These companies are benefiting from the growing demand for AI technology and the increasing adoption of AI solutions across various industries. Investors looking to capitalize on the AI trend have a range of options when it comes to investing in companies at the forefront of this technological revolution.