The artificial intelligence (AI) market is growing rapidly and industries are evolving around the world. The sector offers unprecedented potential to transform the way businesses operate around the world by delivering efficiency and reduced costs. This has led to the adoption of AI by more and more companies.

Given the sector’s encouraging outlook, it might be wise to consider strong AI moves NVIDIA Corporation (NVDA), Microsoft Corporation (MSFT), and Meta Platforms, Inc. (META) for potential gains.

Artificial intelligence (AI) is continually reshaping various industries and economies, driving rapid transformation and robust growth. Industries and businesses are striving to innovate, explore the full potential of AI and best utilize it to increase productivity, improve efficiency and accelerate digitalization.

Sectors such as healthcare, biotechnology, education, finance, advertising, consumer goods and industrial segments are increasingly using AI to improve their business efficiency. Thus, the contribution of AI is expected to increase rapidly in the future. A study by Exploding Topics found that more than 77% of companies are using or exploring the use of AI in their businesses.

With its wide range of applications and demands, AI is expected to create more than 97 million new jobs by next year. In addition, technology should notably contribute $15.7 trillion to the global economy by 2030. With its capabilities such as automating business operations such as consumer service, fraud detection and quality control, AI is creating new industrial opportunities.

Statista predicts that the AI ​​market will reach approximately 184 billion dollars in 2024with the United States leading the global ranking with $50.16 billion.

Given the favorable industry trends, let’s dig deeper into the fundamentals of quality AI stocks like NVDA, MSFT, and META that are transforming industries.

NVIDIA Company (NVDA)

NVDA provides graphics, computing and networking solutions worldwide. The company operates through two segments: Computing & Networking and Graphics. It offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and associated infrastructure, and solutions for gaming platforms.

On October 28, NVIDIA announced that xAI’s Colossus supercomputer cluster comprising 100,000 NVIDIA Hopper Tensor Core GPUs in Memphis, Tennessee, had achieved massive scale with the help of the NVIDIA Spectrum-X Ethernet networking platform , designed to deliver superior performance in multi-tenant and hyperscale environments. AI factories.

On October 21, NVDA expanded its collaboration with Microsoft to support AI startups, with a focus on healthcare and life sciences. The announcement was made at the HLTH Healthcare Innovation Conference. The initiative integrates NVDA’s Inception program with Microsoft for startups, providing access to cloud credits, AI development software, and expert technical and sales support.

The strategic partnership is expected to increase demand for the company’s AI hardware and software solutions, thereby increasing revenue.

NVDA’s revenue increased 122.4% year-over-year to $30.04 billion for the second quarter, ended July 28, 2024. Its non-GAAP revenue operating profit grew 156.4% from last year to $19.94 billion. The company reported non-GAAP net income of $16.95 billion and $0.68 per share, representing year-over-year increases of 151.5% and 151.8%, respectively.

Additionally, the company’s free cash flow increased 122.9% from the year-ago quarter to $13.48 billion.

According to the company’s outlook for the third quarter of fiscal 2025, NVDA expects revenue of $32.50 billion, plus or minus 2%.

Street expects NVDA’s revenue for the third quarter (ending October 2024) to rise 81.8% year-over-year to $32.94 billion, while its EPS for the same period is expected to rise improve by 84.5% year-over-year to $0.74. Additionally, the company has beaten consensus estimates for revenue and EPS in each of the last four quarters, which is impressive.

Shares of NVDA have gained 47.7% over the past six months and 197.4% over the past year to close the most recent trading session at $136.05.

NVDA’s bright prospects are reflected in its POWR Ratings. POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

NVDA has an A rating for sentiment and a B rating for quality. Within the Semiconductor and wireless chip sector, NVDA is ranked #42 out of 91 stocks.

Click here to access additional NVDA ratings for Growth, Value, Stability and Momentum.

Microsoft Corporation (MSFT)

MSFT develops and supports software, services, devices and solutions globally. The Company operates through three segments: Productivity and Business Processes; Smart Cloud; and more personal computing. It offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, Microsoft 365 Copilot and Office consumer services.

On October 10, MSFT unveiled several Microsoft Cloud for Healthcare innovations to connect care experiences, improve team collaboration, empower healthcare professionals, and unlock clinical and operational insights.

With new healthcare AI models in Azure AI Studio, healthcare data solutions capabilities in Microsoft Fabric, healthcare agent service in Copilot Studio, and a nursing workflow solution Powered by AI, Microsoft Cloud for Healthcare supports healthcare organizations on their journey toward building a healthier future.

On October 3, MSFT and Rezolve AI, a global leader in AI-powered commerce solutions, announced a strategic partnership to empower retailers with advanced digital engagement capabilities.

As part of this collaboration, Rezolve AI’s Brain Suite, including Brain Commerce, Brain Checkout and Brain Assistant, will be powered by Microsoft Azure and available globally through Microsoft’s Azure Marketplace and co-sales channels.

MSFT’s total revenue increased 16% year over year to $65.58 billion for the fiscal first quarter ended September 30, 2024. The company’s operating profit increased by 13.6% compared to last year to reach $30.55 billion. Additionally, its net income and EPS totaled $24.67 billion and $3.30, reflecting increases of 10.6% and 10.4% from the prior-year quarter, respectively.

Furthermore, the company’s total assets stood at $523.01 billion as of September 30, 2024, compared to $512.16 billion as of June 30, 2024.

Street expects MSFT’s revenue and EPS for the second quarter (ended December 2024) to increase 11.3% and 7.2% year-over-year to $69.03 billion. dollars and $3.14, respectively. Additionally, it has beaten consensus estimates for revenue and EPS in each of the last four quarters, which is impressive.

Shares of MSFT have surged 14.6% over the past year to close the most recent trading session at $408.46.

MSFT’s strong growth prospects are reflected in its POWR Ratings. The stock has a B rating for quality and stability. Within the Software – Business sector, MSFT is ranked #17 out of 39 stocks.

Click here to access additional MSFT ratings for Value, Growth, Momentum, and Sentiment.

Meta Platforms, Inc.META)

META is committed to developing products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets and wearable devices around the world. The company operates in two segments: Application Family and Reality Labs.

META’s trailing 12-month gross profit margin and EBIT margin of 81.50% and 41.61% are 58.3% and 356.9% higher than the industry averages of 51.49% and 9. 11%, respectively. Additionally, its trailing 12-month net profit margin of 35.55% is significantly higher than the industry average of 2.61%.

On May 31, META’s board of directors declared a quarterly cash dividend of $0.50 per share of its outstanding Class A common stock and Class B common stock, paid on June 26, 2024 to shareholders registered at the close of business on June 14. , 2024. META pays an annual dividend of $2, which translates to a yield of 0.35% at the current stock price.

For the third quarter ended September 30, 2024, META’s revenue increased 18.9% year-over-year to $40.59 billion. The company’s operating revenue increased 26.2% from last year to $17.35 billion. Its net income and earnings per share of $15.69 billion and $6.03 indicate growth of 35.4% and 37.3%, respectively, from the year-ago quarter.

Additionally, the company’s free cash flow increased 13.8% year-over-year to $15.52 billion.

Analysts expect META’s revenue and EPS for the fourth quarter (ended December 2024) to increase 17.1% and 25.8% year-over-year to 46.96 billion of dollars and 6.70 dollars, respectively. Additionally, the company has exceeded consensus estimates for revenue and EPS over the past four quarters.

Shares of META have surged 20.4% over the past six months and 77.5% over the past year to close the latest trading session at $560.68.

META’s POWR Ratings reflect its strong outlook. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system.

The title has an A rating for quality and sentiment. META is ranked #17 among 52 A-rated stocks Internet industry.

To access additional META scores for Growth, Value, Stability and Momentum, Click here.

What to do next?

Get your hands on this special report featuring 3 low-cost companies with huge upside potential, even in today’s volatile markets:

3 stocks that will double this year >

NVDA shares fell $0.30 (-0.21%) after hours Tuesday. Year to date, NVDA has gained 182.59%, compared to a 22.48% rise in the benchmark S&P 500 during the same period.

About the author: Rjkumari Saxena

Rajkumari began her career as a writer, but gradually moved into financial journalism, leveraging her business background. Fascinated by the interplay of business and economic changes in equities, she aspires to grow as an analyst. With a knack for simplifying complex financial concepts, his mission is to provide investors with information that leads to profitable decisions. More…

More resources for stocks in this article