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Racing For GenAI Dominance: 2024 Competition Intensifies, Here Are 3 Likely Winners

Published 29/12/2023, 13:34
© Reuters. Racing For GenAI Dominance: 2024 Competition Intensifies, Here Are 3 Likely Winners
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Benzinga - by Surbhi Jain, .

In the fast-evolving landscape of generative artificial intelligence (GenAI), mega-cap technology giants are engaged in fierce competition. According to a Raymond James Financial Inc (NYSE:RJF) analyst, a few key names will win the race toward commercialization.

GenAI Is Still In Its Early Stages

As reported by CNBC, analyst Josh Beck, in a December note, expressed optimism about the potential of GenAI. Beck stated that despite market enthusiasm, the technology is still in its early stages.

Beck envisions GenAI evolving into an embedded operating system (OS). It could span across consumer and business platforms, and serve as an intelligent agent or copilot for a myriad of tasks (i.e., drafting business contracts).

Also Read: EXCLUSIVE: Marc Chaikin Bullish On AI-Enhanced Software Companies, Forecasts S&P 500 Rally To Continue Into 2024

The adoption of generative AI is scaling at an impressive rate, approximately 40X faster than other major tech platforms. Venture capitalists have poured around $40 billion into generative AI startups, indicating strong investor confidence in the technology’s future.

Key GenAI Stocks To Consider For 2024

Raymond James highlighted key stocks that are already exerting outsized influence in the GenAI space:

  • Amazon.com Inc (NASDAQ:AMZN): Once considered a GenAI laggard, Amazon has surged ahead, particularly after its re:Invent conference breakthroughs. With offerings like Amazon Web Services’ Neuron platform and Amazon SageMaker, the e-commerce giant is well-positioned to gain meaningful adoption among its extensive customer base.
  • Meta Platforms Inc (NASDAQ:META) (formerly Facebook): With a remarkable 196% increase in its stock price this year, Meta is leveraging generative AI to enhance engagement across Facebook and Instagram. Analyst Josh Beck sees this as a multi-year tailwind that could contribute to sustained secular growth and increased ad share.
  • Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) aka Google and Microsoft Corp (NASDAQ:MSFT): Both tech giants have made significant strides in the generative AI race. Google’s Gemini 1.0, with different sizes catering to various tasks, offers promising potential, while Microsoft’s early investment in ChatGPT-maker OpenAI and its success with Azure AI Studio position it as a strong player.
    • Raymond James also highlighted private companies that have attracted substantial venture capital, including Clari, Canva, Picsart, and Anyscale, emphasizing the broad scope of generative AI’s influence across different industries.

    Now Read: AI ‘Unlikely’ To Replace Financial Advisors Due To ‘Fiduciary’ Issue

    Image: Shutterstock

    © 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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