Top AI Stocks to Watch: Amazon and Unity Software Offer Promising Investment Opportunities
Artificial Intelligence: Transforming the Investment Landscape
Artificial intelligence (AI) remains at the forefront of technological progress, rapidly influencing business models and fueling market growth. While recent concerns have emerged about how quickly AI is contributing to profitability, many experts agree that the technology's potential is just beginning to unfold. Investors who adopt a long-term strategy for investing in stocks and target reliable performers in the AI sector could see compelling investment returns.
Let’s look at why Amazon and Unity Software are standout stocks for those interested in AI and technology-driven performance stocks.
Amazon: The Cloud Leader Positioned for AI Dominance
Amazon continues to be a dominant force in cloud computing, holding roughly 30% of the global market, according to Statista. Despite underwhelming some investors with its most recent quarterly report, Amazon’s long-term prospects remain strong—especially in AI.
Amazon Web Services (AWS), although currently growing at a slower rate than competitors like Microsoft's Azure, still boasts higher overall sales and a more extensive suite of services. AWS generated nearly $120 billion in sales over the last twelve months, outpacing Azure's $75 billion.
Amazon is heavily investing in AI, with CEO Andy Jassy announcing more than $100 billion dedicated to cloud and AI initiatives this year. The company's AI offerings cater to a wide range of customers—from small businesses using plug-and-play solutions to large enterprises developing custom large language models (LLMs).
Amazon’s Bedrock platform delivers a broad selection of LLMs, tools for developers, and collaborations with leading AI firms, such as Anthropic. Additionally, partnerships with hardware leaders like Nvidia and the development of its own AI chips strengthen Amazon's position. As the global transition from traditional IT to cloud accelerates over the next decade, Amazon is well-placed to capitalize on this growth and establish itself as a leader in generative AI.
Unity Software: An AI-Driven Turnaround in Progress
Unity Software might not be the first name that comes to mind when thinking about AI stocks and investing, but the company's recent success story is noteworthy. Known for its video game development tools and digital marketing platforms, Unity faced challenges after its initial public offering. However, a strategic refocus on profitability and innovation is driving a remarkable turnaround.
Unity's share price has surged more than 140% in the past year. This resurgence is fueled in part by its AI-powered ad platform, which saw a 15% sequential sales increase in the latest quarter. Optimism is further supported by projected mid-single-digit growth in the coming quarter and emerging opportunities in AI-driven digital marketing.
Beyond advertising, Unity’s AI software plays a crucial role in enabling nonplayer characters to navigate virtual spaces—technology that could be applied to future robotics and automation. Unity also leads in building augmented reality (AR) and virtual reality (VR) applications, positioning itself at the forefront as AR and VR become more integrated into mainstream technology.
Final Thoughts: Embracing AI in Stocks and Investing
While AI technology is still evolving, both Amazon and Unity Software present significant potential for investors seeking strong performance stocks. Their market leadership, robust investment in innovation, and strategic positioning make them attractive choices for those focused on long-term investment returns.
--- This content is for informational purposes only and does not constitute financial advice.
