The AI industry has experienced consistent growth over the past few years. The adoption of artificial intelligence by big tech companies is on the rise, with leading companies in the industry focusing their growth strategies on AI. Market strategists at Crossmark Global Investments believe Microsoft is better positioned than its peers to profit from AI.
Market strategists choose Microsoft over competitors in technology race
Victoria Fernandez, market strategist at Crossmark Global Investments, said her firm is downgrading big tech stocks to “underweight” due to uncertainty. But the giant company they value above all else is Microsoft. In an interview with Yahoo Finance, he said Microsoft is strong in its AI games and should start monetizing artificial intelligence soon. Microsoft may be able to outperform its competitors in the future. This is primarily due to the company's strong cash sheet and overall management of its artificial intelligence resources.
Tech companies will focus on AI revenue generation in 2024
Most publicly traded companies are currently working on some form of AI-related tools and integrations. However, CoinGape previously reported that companies such as Google, Meta, and China's Baidu do not currently have generative AI contributing significantly to their revenue, according to the founder of research firm Radio Free Mobile.
Nevertheless, market participants have long been betting on the AI revenue models of various companies. According to CNBC, the Nasdaq rose 43% in 2023. This was one of his steepest rises in tech stock ratios in his 20 years. Investors are now waiting for companies to start minting money from their AI products.
AI drives market growth for technology companies
From 2023 to 2030, the global artificial intelligence market size is expected to increase at a compound annual growth rate (CAGR) of 37.3%. It is projected to reach $1,811.8 billion by 2030. Due to its rapid expansion, IT businesses are attracting the attention of investors around the world. There is growing belief that the range of lucrative services companies offer due to their exposure to AI will lead to positive cash flows for the long term.
Global forecasts for AI growth remain resilient and influential. According to Forbes, China is expected to benefit the most from AI. The country's GDP will increase by 26% by 2030, with North America benefiting by 14.5%. Together, these gains represent $10.7 trillion, or more than 70% of the global economic impact.
