Artificial intelligence is a revolutionary technology that will completely change business
artificial intelligence (A.I.) is definitely a transformative technology. Experts predict that the rise of AI will cause massive market disruption. Cathie Wood predicts that the global economy could benefit from her $200 trillion in productivity by 2030.
And some companies are also being transformed by it. After the introduction of AI, the entire business model has completely changed. microsoft (NASDAQ:MSFT) injected OpenAIChat’s GPT-generated AI is built into nearly every product and service the company offers, from its Azure cloud services to its Bing search engine.
The following three stocks have undergone even more fundamental changes due to AI. They are almost unrecognizable compared to just a few years ago.
Nvidia (NVDA)
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Indeed, no company has been more transformed by AI. Nvidia (NASDAQ:NVDA). As the explosive earnings report highlighted, NVDA stock is a very different place today than it was just a few years ago.
Sales of Nvidia’s data center division, which handles its AI business, quadrupled from the previous year. His sales of $18.4 billion were 409% higher than the division’s sales of $3.6 billion in the fourth quarter of 2022. For the full year, sales more than tripled to $47.5 billion. Additionally, data center revenue accounted for 83% of total sales in the fourth quarter.
Ten years ago, it was a different story. At the time, Nvidia’s fourth-quarter revenue was just $1.25 billion, about 86% of which came from gaming graphics processor units (GPU). Even five years ago, his 43% of Nvidia’s revenue came from gaming.
Then, the dawn of AI completely upset and tilted that balance. Nowadays, AI is used all the time, even in games. In fact, the gaming business is growing again. Its revenue increased by 56% in the quarter as Nvidia introduced its AI capabilities into its technology to improve the experience and functionality of games and games.
Palantir Technologies (PLTR)
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AI is Palantir Technologies (NASDAQ:PLTR) technology has been around for a while, but it was still barely worth mentioning in 2021.
PLTR has featured AI only a few times in its first annual report as a public company. Even then, it was only about the risks it posed to its own business. The big data company said that although the technology is integrated into some of its platforms, it is “an important and potentially growing component of our business.”
Earlier this month, Palantir Technologies reported its latest full-year report. AI was everywhere. PLTR has brought AI to its Gotham and Foundry platforms, data analytics services for governments and private enterprises, respectively, as well as launched a standalone AI platform (AIP) works on both platforms and leverages existing machine learning technology. It is essentially an AI-powered operating system for business. This will allow Palantir Technologies to integrate and process more data. In addition to numbers, the platform also allows you to analyze videos, images, audio, Slack channels, PDFs, and more.
Thanks in particular to AIP, Palantir Technologies more than doubled its U.S. commercial bookings and backlog in the fourth quarter, with total contract value of $343 million. PLTR also closed 103 deals worth more than $1 million thanks to AI. Therefore, this will continue to transform Palantir Technologies in the coming years.
Crowd Strike (CRWD)
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cyber security specialist cloud strike (NASDAQ:CRWD) Thanks to AI, things may not be that different now than they were in the beginning.
But that’s only because AI has been a core technology from the beginning. Founded as an AI cloud-scale cybersecurity company, CrowdStrike has become a growth engine for the company with the launch of its Falcon threat assessment platform.
The Falcon platform sifts through trillions of events each week to automatically prevent threats in real-time. AI allows us to provide such precision and continuous protection. As Falcon receives more data, it gets smarter over time, creating a network effect across its customer base.
To continually improve the platform’s threat assessment capabilities, Crowdstrike must continually feed new client data into its algorithms. The company has adopted a so-called “locate and expand sales strategy” to acquire new customers. CrowdStrike first introduces clients to Falcon. We then provide additional modules to add to the platform as your needs grow. The customer found that over time he quickly scaled up to use four, five, six or more modules. Because of its subscription-based model, Crowdstrike sees annual recurring revenue growth.
In other words, cybersecurity companies aren’t being radically transformed by AI; they’re being passed down by AI. AI will expand its usefulness to Crowdstrike over time.
On the date of publication, Rich Duprey did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
