We've entered the age of AI. Artificial intelligence has the potential to reshape vast sections of our society. From tech to healthcare to retail, and nearly every industry in between, those who deploy AI effectively will survive and thrive. Those who don't will be disrupted and left behind.
The companies that help to usher in this global megatrend stand to reward their investors. Here are two businesses that are particularly well positioned to lead the AI revolution.
1. Advanced Micro Devices
Advances in AI will lead to soaring demand for high-performance computers -- and the semiconductors that power them. Advanced Micro Devices (AMD -0.35%) intends to supply these increasingly vital chips. The chipmaker is off to a fast start with its latest line of processors, and it intends to widen its technological lead over its slower-moving rivals.
In January, AMD introduced its MI300 accelerators that can be used to power large model AI applications in supercomputers and cloud data centers. The next-generation chips combine central processing units (CPUs), graphics processing units (GPUs), and high-speed memory in a unified design that delivers an eightfold increase in performance and a fivefold improvement in efficiency for AI workloads, compared to previous-generation chips, according to AMD.
AMD also debuted its new Ryzen 7040 CPU for personal computers (PCs) in January. The chip is the first to feature dedicated AI hardware in a mobile processor.
In a statement announcing the product launch, AMD executive Saeid Moshkelani said:
With the new Ryzen AI technology built into our Ryzen 7040 series mobile processors, we will bring not only leadership performance and power efficiency but also the power of artificial intelligence to laptop devices, ushering in a future with powerful new capabilities that only true AI hardware can provide and opening the door to a new world of experiences.
AMD CEO Lisa Su believes AI is on the verge of going mainstream. With the chip giant's cutting-edge processors pushing the envelope of what's possible in high-performance computing, Su is positioning AMD to help lead the world forward into the AI age.
2. Microsoft
Perhaps no business is doing more to spur the adoption of AI than Microsoft (MSFT 0.37%). The software titan is integrating the cutting-edge technology throughout its wide-ranging business segments.
In late January, Microsoft made a multi-billion-dollar investment in OpenAI, the creator of the ChatGPT application. People can interact with ChatGPT in a conversational way to ask questions and compose content. With already more than 100 million users since its release in late November, the AI-driven chatbox is the fastest-growing app of all time.
The tech giant wasted little time before adding OpenAI's highly regarded technology into its Microsoft Teams collaboration tools. Microsoft is also reportedly planning to bring ChatGPT-like tools to its ubiquitous Office suite of productivity solutions.
Microsoft made an even bigger splash when it announced that it would use OpenAI's tech to launch an AI-powered version of its Bing internet search engine. The new Bing will enable users to ask questions and receive more humanlike answers rather than just links to websites. Better still, Microsoft said its new AI tech helped it achieve the largest improvement in search result relevance in two decades. The tech titan believes these AI upgrades will allow it to wrestle away search market share -- and, by extension, profits -- from Alphabet's Google.
Yet Microsoft's most powerful AI-fueled growth driver likely resides in its Azure cloud computing platform. The cloud colossus wants to help its customers build their own AI applications. To do so, it's offering a compelling combination of Azure's cloud infrastructure and access to OpenAI's large-scale AI models.
By serving as the bridge between businesses and their AI ambitions, Microsoft stands to capture a sizable share of a global AI market that's projected to exceed $1 trillion by the end of the decade.
