AI Stocks Primed for Growth: Tesla, Salesforce, and Amazon
Source: finance.yahoo.com
Artificial intelligence is transforming industries, and smart investors are watching closely. While some AI stocks have already soared, others are just gearing up for significant growth.
AI Market Growth
The artificial intelligence market is booming. Experts predict it will surge from $270.22 billion in 2024 to a staggering $3.5 trillion by 2033. That represents an annual growth rate of 31.5%, making it a sector ripe with opportunity.
Early winners include names like Nvidia, Palantir Technologies, and CoreWeave. However, some promising AI stocks have yet to reach their full potential. Tesla, Salesforce, and Amazon are three companies that analysts believe are on the verge of a bull run.
Tesla's Autonomous Future
Tesla, known for electric vehicles and innovation, has faced some challenges this year. Public perception has been affected by CEO Elon Musk's political activities. However, Tesla reported record vehicle deliveries of over 497,000 in the last quarter. This was likely boosted by an expiring federal tax credit.
Tesla is also developing its Robotaxi autonomous service, currently available in Austin, Texas. Expansion could significantly boost Tesla's stock value. Ark Invest estimates Robotaxi could comprise 90% of the company's value by 2030.
Salesforce Integrates AI
Salesforce is using AI to enhance its software-as-a-service offerings. Its Agentforce tool helps businesses in various sectors, including finance and retail. Agentforce helps businesses maximize their autonomous AI agents 16 times faster than traditional approaches.
Salesforce's revenue reached $10.2 billion in the second quarter, a 10% increase year-over-year. The company's data cloud and AI annual recurring revenue jumped 120%. With 12,000 deals closed since launching Agentforce, Salesforce has raised its financial outlook.
Amazon's AI Infrastructure
Amazon utilizes AI extensively in its e-commerce division and Amazon Web Services (AWS). Over 1 million robots operate in its warehouses to streamline deliveries.
AWS dominates cloud computing with a 30% market share. While Amazon's e-commerce sales were $136.8 billion last quarter, AWS generated $30.8 billion in revenue and higher profits of $10.1 billion.
Investing in AI's Future
While Tesla, Salesforce, and Amazon haven't yet seen explosive growth in 2024, they show great promise. These AI stocks could rebound strongly in 2025. Investors should consider the long-term potential of these companies.