Investors will likely remember 2023 as the year artificial intelligence (AI) hit its stride. While tech giants have utilized the technology for years, investors turned back to these stocks when they saw the power of OpenAI's ChatGPT. Many companies with footholds in the space should sustain their AI-inspired share price gains over the long term, and Nvidia (NASDAQ: NVDA), Palantir (NYSE: PLTR), and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) are three stocks in particular that should drive significant returns for investors.
Shares of e-commerce and cloud computing behemoth Amazon (NASDAQ: AMZN) have gained by 76% so far in 2023 -- a remarkable recovery after losing nearly half of their value in 2022. The company's recent quarterly results (for the three months ending Sept. 30) were stellar, with revenue and earnings handily surpassing consensus estimates. The company's free cash flow exploded to $21.4 billion in the 12 months ending Sept. 30, compared to negative $19.7 billion in the previous year.
One is gaining momentum with the help of artificial intelligence. The other continues to fall behind.