The artificial intelligence trade is alive and well as major tech companies report blowout demand for AI services.
Earnings Highlights
The big three AI beneficiaries all delivered stellar results:
Nvidia (NVDA)
- Revenue: $35.1B (up 94% YoY)
- Data center revenue: $30.8B
- Guidance: Even stronger Q1 expected
Microsoft (MSFT)
- Azure growth: 33% (AI services up 150%)
- Copilot adoption exceeding expectations
- Enterprise AI demand is “unprecedented.”
Alphabet (GOOGL)
- Cloud revenue up 35%
- Gemini AI is driving new product integrations
- YouTube AI features are gaining traction
The AI Investment Thesis
For young investors, AI represents a generational opportunity similar to the internet boom of the 1990s. However, valuations are stretched, making entry points crucial.
How to Play It
- Direct exposure: Buy individual AI leaders
- ETFs: Consider BOTZ or AIQ for diversified exposure
- Picks and shovels: Look at semiconductor equipment makers
Always do your own research before investing.