Top Ways to Trade the Potential $25 Trillion Artificial Intelligence Market by 2030
The artificial intelligence market is poised for significant growth, with estimates suggesting it could reach a staggering $25 trillion by 2030, according to McKinsey. This represents a substantial increase from the current valuation of $17 trillion. Furthermore, research from Wedbush indicates that AI-related spending is expected to account for 8% to 10% of IT budgets by 2024, marking a significant uptick from less than 1% in 2023.
Impact on AI Stocks
As the AI market continues to expand rapidly, it is expected to have a profound impact on AI-related stocks. Companies such as VERSES AI (CBOE: VERS) (OTCQB: VRSSF), Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), and Advanced Micro Devices (NASDAQ: AMD) are well-positioned to benefit from this growth.
Global Spending on AI Software
Gartner projects that global spending on AI software will surge to $297 billion by 2027, as software vendors increasingly integrate AI tools into their products. The research firm anticipates that over 70% of independent software vendors will incorporate GenAI into their enterprise applications by 2026, a significant increase from less than 1% in 2023.
Other Developments in the AI Industry
NVIDIA recently announced that nine new supercomputers worldwide are utilizing NVIDIA Grace Hopper™ Superchips to accelerate scientific research and discovery. These systems collectively deliver 200 exaflops of energy-efficient AI processing power, driving a fundamental shift in the high-performance computing industry toward AI-powered systems.
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Microsoft has unveiled a comprehensive investment package aimed at strengthening Southeast Wisconsin's role as a hub for AI-powered economic activity. This initiative includes substantial investments in cloud computing and AI infrastructure, the establishment of a manufacturing-focused AI co-innovation lab, and an AI skilling program to equip residents with essential AI skills.
Meta Platforms reported positive financial results for the first quarter of 2024, with CEO Mark Zuckerberg noting the progress being made in advancing Meta AI. The company continues to see healthy growth across its apps and is actively building the metaverse.
Advanced Micro Devices showcased its ongoing leadership in high-performance computing at ISC High Performance 2024. The Frontier supercomputer, powered by AMD EPYC™ CPUs and AMD Instinct™ GPUs, retains its position as the world's fastest supercomputer, underscoring AMD's prominent presence in the industry.
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Legal Disclaimer: The content above may contain forward-looking statements and should not be considered as investment advice. Readers are advised to conduct their research before making investment decisions.
