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In recent assessments of the evolving landscape of artificial intelligence (AI) companies, we have identified 11 trending AI stocks. This article will delve into Microsoft Corporation’s (NASDAQ:MSFT) position relative to these emerging AI stocks.
The potential for AI technology to transform various aspects of daily life remains an area of significant speculation. Various organizations have undertaken initiatives to gauge the potential impacts of these advancements. For instance, a recent report from the Tony Blair Institute for Global Change, a non-profit based in London, predicts that AI could displace between 1 million and 3 million jobs in the UK private sector over the next few years. However, the report also emphasizes that the actual increase in unemployment may only reach the low hundreds of thousands, as technological growth is anticipated to generate new positions as well. Their research estimates that, at the height of AI disruption, job displacement could range from 60,000 to 275,000 annually over a span of several decades.
Further analysis revealed that the average annual job losses in the UK have been around 450,000 over the last decade, placing the anticipated AI-driven job losses in a broader context. Importantly, the report highlights that the introduction of AI is likely to enhance labor market mobility by motivating individuals to transition from existing roles to new opportunities. It identifies administrative and secretarial positions as the most vulnerable to automation, alongside roles in sales, customer service, and the banking and finance sector. Notably, the research also posits that the implementation of AI could boost the UK’s GDP by up to 1% over the next five years, potentially escalating to as much as 6% by 2035.
For those interested in AI investment trends, the insights can be expanded by exploring 10 best AI data center stocks or 10 buzzing AI stocks highlighted by Goldman Sachs.
To identify these AI stocks, we analyzed numerous news articles, stock analyses, and press releases. The stocks discussed are those that attract significant interest from hedge funds.
Our interest in hedge fund investments is based on research indicating that replicating the top stock selections of successful hedge funds can lead to superior market performance. Our quarterly newsletter focuses on selecting 14 small and large-cap stocks, achieving a remarkable return of 275% since May 2014, outpacing its benchmark by 150 percentage points (find more information here).
Among these prominent stocks, Microsoft Corporation (NASDAQ:MSFT) has garnered considerable attention, with 279 hedge fund holders. Recently, Mustafa Suleyman, CEO of Microsoft’s AI unit, projected that by 2025, AI could achieve a form of persistent memory, a development that he believes will transform interaction with AI systems. Suleyman’s comments, made during a visit to India, pointed to the company’s advancements in prototypes designed to maintain continuous and evolving conversations with users.
Currently, MSFT ranks second among the identified trending AI stocks. While many view MSFT as a valuable investment opportunity, our analysis suggests that there might be AI stocks with greater potential for higher returns over shorter time frames. For investors seeking a promising AI stock that trades below five times its earnings, further details can be found in our report on the cheapest AI stock.
For additional insights, consider exploring: $30 trillion opportunity: 15 best humanoid robot stocks and Jim Cramer’s assessment of NVIDIA.
Disclosure: None. This article is originally published at Insider Monkey.
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finance.yahoo.com