The AI industry has seen consistent growth in the past couple of years. The incorporation of artificial intelligence by big tech giants has seen an upward trend, making the industry heavyweights focus their growth strategies on AI. Market strategist at Crossmark Global Investments believes that Microsoft is well placed above its peers to cash in on AI.

Market strategist pick Microsoft over  peers in the tech race

Victoria Fernandez, market strategist at Crossmark Global Investments said that the firm has been cutting big tech names to “underweighting” due to uncertainty. However, the one behemoth that they have placed above all is Microsoft. In an interview with Yahoo Finance, she said that Microsoft has its AI game strong and should start monetizing on artificial intelligence soon. Microsoft may be able to outperform its competitors in the future. This will primarily be due to the strength of its cash sheet and its general control of artificial intelligence resources.

Tech firms to focus on AI revenue generation in 2024

Most publicly listed companies have some or other exposure to AI-related tools and integration at present. However, CoinGape previously reported that according to research firm Radio Free Mobile’s founder, companies like Google, Meta, and China’s Baidu don’t have generative AI as a significant revenue contributor today.

Despite this, market participants have long placed bets on AI revenue models of various companies. According to CNBC, the Nasdaq climbed 43% in 2023. This was one of the sharpest rallies for the tech-heavy index in 20 years. Investors are now waiting for companies to start minting money out of their AI products.

AI to spur market growth for tech companies

From 2023 to 2030, the size of the worldwide artificial intelligence market is projected to rise at a compound annual growth rate (CAGR) of 37.3%. It is projected to reach $1,811.8 billion by 2030. Due to their rapid expansion, IT businesses have drawn the attention of investors worldwide. The scope of lucrative services that teach firms offer due to their exposure to AI has raised bets on the firms being cash flow positive for a long.

The global forecast of AI growth remains resilient and impactful. According to Forbes, China is expected to benefit the most from AI. The country will see its GDP climb by 26% by 2030, and North America will benefit by 14.5%. Together, these gains will equal $10.7 trillion, or over 70% of the global economic impact.

 

The post AI News: Market Bullish on Microsoft’s AI Sway and Ability to Monetize It appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am