AI Infrastructure Companies Positioned for Growth and Profits

For the past few years, artificial intelligence (AI) has been a buzzword in the technology industry. However, its impact is becoming increasingly felt across a wide range of industries. The global market for AI software is projected to grow significantly and is expected to reach $22.6 billion by 2025.

In this article, we’re going to focus on AI infrastructure companies that are leading the charge in “supporting the AI revolution.” These companies offer the tools and resources needed for the development and deployment of AI algorithms. 

Additionally, we will identify a leading group of 10 AI infrastructure companies that may stand to gain the most from the coming AI revolution. Investing in these companies allows investors to leverage on the AI industry’s growth and potentially reap substantial profits.

Disclaimer: The content in this article by Tradeview Markets is for informational purposes only and should not be construed as a recommendation to buy or sell any securities. Investing in securities involves risks, and individuals should conduct their own research and/or consult with a financial advisor before making any investment decisions. 

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What is Artificial Intelligence?

According to Oracle, artificial intelligence or AI is a phrase used to denote a multitude of technologies referring to the development of intelligent software or hardware capable of learning and solving problems. These include, among other things, machine learning, computer vision, and natural language processing (NLP). 

AI is projected to achieve widespread adoption with implications across all industry sectors, making it one of the next great technological shifts. This is analogous to the advent of the computer age or the smartphone revolution. 

Artificial Intelligence Applications in the Modern Era

You’ve most likely dealt with artificial intelligence (AI) at some point in your life, whether it was Google’s algorithms, ordering an Uber, or using Apple’s Siri. Here are just a few of the artificial intelligence applications that are advancing the technology that impacts our lives.

• Chatbots: With the debut of ChatGPT, the world got a glimpse of what future chatbots might look like. ChatGPT converses with users in order to answer queries and even debate certain points of view.
• Agriculture: The autonomous farming industry is experiencing rapid growth, with over 200 AI-based agricultural companies operating in the United States alone. Farming applications of artificial intelligence include self-driving tractors, combine harvesters, robot swarms for crop inspection, and autonomous sprayers.

High-Tech Farming (Source: PxFuel)

• Education: According to Forbes, AI is expected to have a major impact on education. Bots are expected to take over more educational-related tasks, including finding and orienting new students and reminding them to complete their assignments.  In addition there is speculation that AI could soon perform better at some tasks than even experienced teachers currently do.
  
  Of course, not all businesses will benefit from the increased usage of artificial intelligence. Chegg Inc, a provider of educational services in the United States, recently warned that the use of the ChatGPT AI chatbot has hampered subscriber growth. This has led to a significant drop in its shares.
  
  Still, some experts believe that the company is taking a proactive approach to embrace AI technology and capitalize on its potential benefits.
• Finance: AI is being utilized in the financial services industry to improve fraud detection, automate compliance processes, improve investment decision-making, and personalize customer experiences, according to a Forbes article. It is also used to analyze massive amounts of data in order to spot trends and make predictions.  If we look back some of the first commercial applications of AI were by financial firms in areas such as trading and research
• Healthcare:  By 2026, it is expected that AI applications in healthcare will cut US healthcare expenditures by $150 billion annually. The healthcare system is moving away from a reactive to a proactive paradigm, placing more emphasis on health maintenance than disease treatment.
  
  This could lead to fewer hospitalizations, doctor visits, and treatments. Artificial intelligence-based technology will enable continuous monitoring and coaching to keep individuals healthy. It will also help provide earlier diagnosis, personalized therapies, and more efficient follow-ups.

In summary, the use of AI is expanding quickly across a range of sectors, including agriculture, education, finance, healthcare, and more. Although integrating this technology may be difficult for some companies, experts believe that AI has the ability to boost productivity, accuracy, and performance across a wide range of industries.

The Potential of Investing in Companies That Support AI

In the midst of a boom in investor interest, Wall Street analysts are racing to promote the top artificial intelligence stocks. Hearing management talk about artificial intelligence has become commonplace. Nevertheless, it’s a good time to be cautious if you’re looking for the top AI stocks.

As the AI industry expands, investing in businesses that enable AI could potentially reap substantial returns. These businesses offer the technological foundation and infrastructure necessary for the development and use of AI algorithms.

Investing in companies that provide AI infrastructure can lower the risk compared to investing in individual companies that use AI. Investing in a company that offers the technology rather than one that uses AI may enable you to potentially benefit from the expansion of the entire sector.

Furthermore, these organizations have established brands, extensive client bases, and substantial resources, which can help them in weathering any economic downturns.

The Levi Strauss Story and Its Application to AI

The Levi Strauss principle, “During a gold rush, sell shovels,” refers to the idea that companies that provide the necessary tools and infrastructure for a growing industry can potentially benefit more than the companies directly involved in the industry. 

This applies to the AI industry, where infrastructure and technology providers for AI algorithms have more potential for benefit than companies that use AI.

Source: Flickr

Investing in AI infrastructure companies is comparable to “selling shovels” during a gold rush. These businesses supply the tools and infrastructure required by the expanding AI market. As a result, as the industry expands, so will the need for these products and services.

Investing in these companies can potentially benefit investors from industry-wide growth, not just one company’s performance.

Our Top 10 AI Infrastructure Companies

Investing in AI infrastructure companies that provide hardware, software, and cloud services can potentially result in significant growth and outsized returns. These companies have a crucial part to play in the AI revolution since they are instrumental in the development and deployment of AI applications.

There are many companies that provide AI infrastructure services, but here are ten that are well-positioned to thrive in the approaching AI revolution:

#1) Nvidia (NVDA)

Nvidia creates high-performance microchips capable of running advanced AI applications. This service is currently in high demand, as Nvidia has worked with firms like Meta and Oracle to integrate AI into their operations.

Nvidia (Source: Flickr)

Nvidia’s competitive edge in the AI infrastructure market is based on its technological leadership in GPUs and Tensor Cores. These technologies allow for faster and more efficient processing of massive data sets, which is necessary for AI applications.

Nvidia also offers software frameworks and tools that help developers in developing and deploying AI applications on its hardware. As a result, it has established itself as an important player in the AI infrastructure industry.

#2) Intel (INTC)

Intel is well-known for developing microprocessors that are widely utilized in personal computers around the world. The multinational technological firm is also the largest revenue-generating semiconductor chip producer. Intel chips are found in the vast majority of electronic devices throughout the world.

With its cutting-edge data centers, hardware, and software, Intel is at the vanguard of the AI revolution. Intel technology combined with AI will result in quicker, smarter, and more secure systems. Intel’s continued development of its capabilities will benefit the entire industry.

Intel has developed deep learning processors, such as the Intel Xeon Scalable Processors and Nervana Neural Network Processor, that are designed to meet the demanding processing requirements of this industry. As a result, they provide faster training times and improved performance.

⇒ In a joint announcement earlier this year, Nvidia and Intel introduced a new generation of workstations. These workstations integrate advanced AI processing, rendering, and simulation capabilities to meet the needs of data science, media, and healthcare industries.

#3) IBM (IBM)

IBM is a major international technology company with operations in over 170 countries and over 345,000 workers. They specialize in cloud computing, data analytics, computer hardware, and software.

In the AI infrastructure market, IBM has various competitive advantages. One example is their expertise in developing high-performance computing systems, such as supercomputers. These can be used for artificial intelligence applications that demand enormous quantities of processing power. 

IBM Watson (Source: Flickr)

Another aspect is its AI software portfolio, which includes Watson and provides a number of tools and services for developing and implementing AI applications.

IBM has also invested heavily in creating specialized AI hardware, such as its PowerAI and Neuromorphic chips, which are engineered to enhance AI workloads.

#4) Alphabet (GOOGL)

Alphabet, the company formerly known asGoogle is one of the world’s most valuable companies that offers internet-related products and services. Their most well-known product is a search engine that handles billions of queries each day. Google provides several other services such as online advertising, cloud computing, software, and hardware. 

Google’s expertise in AI and machine learning technologies is a competitive advantage in the AI infrastructure space. This includes natural language processing, computer vision, and speech recognition. 

It builds and deploys AI applications using its cloud computing platform, Google Cloud Platform (GCP), and has developed TensorFlow, a popular machine learning framework. 

In conclusion, Google has become a prominent player in the market thanks to its contributions to the development and use of AI technology.

#5) Amazon (AMZN)

Amazon’s AWS (Amazon Web Services) subsidiary that provides cloud computing services to individuals, corporations, and governments. AWS is well-known for its dependable and scalable infrastructure, which enables organizations to store and process enormous amounts of data, operate apps, and install machine learning models, among other things.

In the field of AI infrastructure, AWS has multiple competitive advantages. The primary advantage is its vast cloud computing infrastructure, which can rapidly and easily grow to handle any AI workload. 

Furthermore, AWS provides various AI services and tools, such as Amazon SageMaker, that enable developers to create, train, and implement machine learning models rapidly. 

AWS has a thriving community of developers and partners who build and support AI applications and services on the AWS platform. 

#6) Microsoft (MSFT)

Microsoft is the world’s largest developer of computer software and one of the world’s top technology corporations, best known for the Windows operating system, Office Suite, and Azure cloud computing platform

Microsoft Azure (Source: Flickr) 

Microsoft provides a variety of AI development tools in the AI infrastructure field. The Azure Machine Learning Studio is one of these tools, and it simplifies the development and deployment of machine learning models. Microsoft also provides the Microsoft Cognitive Toolkit, which can support deep learning algorithms.

Another advantage that Microsoft has is its close relationship with other companies, as well as its expertise in embedding AI capabilities into its existing products and services. 

Microsoft and AMD ((Advanced Micro Devices) recently partnered to create new cloud computing and AI technologies. Their primary goal is to improve the performance of apps running on Microsoft cloud services like Azure by upgrading AMD’s hardware for use with these services.

#7) Cisco (CSCO)

Cisco is well-known for its networking hardware, software, and services, which enable device connectivity and data sharing. It is a major participant in the networking sector, and its products are widely used by enterprises all over the world.

Cisco has two significant advantages in the AI infrastructure market. For starters, its networking expertise enables the efficient deployment of AI workloads across computing systems. 

Second, it delivers artificial intelligence-enabled networking solutions, such as the DNA Center, which automates and gives insights for network operations.

#8) Hewlett Packard Enterprise Co. (HPE)

HPE is a company that provides intelligent solutions and cloud-based services. The company’s product line includes servers, storage devices, networking equipment, integrated systems, software, bespoke financial solutions, and cloud service-based products.

HPE offers AI-optimized hardware in the AI infrastructure arena, such as the HPE Apollo 6500 Gen10 System, which works well for deep learning tasks. In addition, HPE offers AI services and collaborations, including collaboration with Nvidia and Intel to improve AI workloads on its infrastructure.

#9) Dell Technologies (DELL)

Dell Technologies offers a wide range of hardware, software, and services to businesses and organizations worldwide. Among their goods are desktops, laptops, servers, storage devices, networking solutions, and cloud services. 

Dell Technologies has a few unique advantages in the AI infrastructure market. For starters, it includes AI-enabled hardware, such as the Dell EMC PowerEdge server, which is optimized for AI workloads.

Dell has collaborations with Intel and Nvidia to integrate their artificial intelligence technology into Dell’s infrastructure. Dell Technologies Services also provides consulting and assistance to customers developing and implementing AI solutions.

#10) Pure Storage (PSTG)

Pure Storage offers enterprise data flash storage systems to replace electromechanical disk arrays. As data becomes a more important asset to businesses, the emphasis on enterprise storage has grown.

Pure Storage has two competitive advantages in the AI infrastructure area. The first is its FlashBlade platform, which provides high-performance storage solutions for artificial intelligence applications. 

The second advantage of Pure Storage is its collaborations and integrations with Nvidia. This combines Nvidia’s GPU technology with Pure Storage’s FlashBlade architecture in order to optimize AI workloads.

Investing in the Future of AI Infrastructure

In conclusion, the field of AI infrastructure is a rapidly growing and profitable sector with numerous companies contending for market share. We examined the top ten companies in this market, highlighting their primary offers and competitive advantages. These companies range from major heavyweights like IBM, Google, and Amazon to newcomers like Pure Storage.

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About the author:

Alexis Marchena

SEO Administrator of Tradeview Markets

Email: amarchena@tvmarkets.com

LinkedIn: https://www.linkedin.com/in/alexis-marchena-3870637/