AI Spending Could Soar 600%: 2 Brilliant AI Stocks to Buy in September (Hint: Not Nvidia or Palantir)
Morgan Stanley estimates that artificial intelligence (AI) sales in infrastructure and software companies will increase by more than 600% by 2028.
Meta Platforms uses AI to increase content suggestions and advertising transformation rates in the sector leader social media properties portfolio.
Pure Storage develops institutional storage systems that provide the highest density and lowest power consumption in the industry and makes it ideal for artificial intelligence.
Morgan Stanley Analysts estimate that artificial intelligence (AI) expenditures through infrastructure and software will increase by more than 600% by 2028. Nvidia and/or Palantir It has been a popular way to take advantage of this trend, but investors Meta Platforms(Nasdaq: Meta) And Pure storage(NYSE: PSTG).
Most Wall Street analysts follow companies have positive opinions. The average target price of meta platforms is $ 875 per share, which reverses the current stock price of $ 735. And Pure Storage has an $ 80 -per -$ median target price per share, which suggests 4% of the current stock price of $ 77.
That’s why I think that these AI stocks are bright long -term investments.
Image Source: Getty Images.
Meta Platforms has three of the most popular social media networks measured by monthly active users. This dominant competitive position gives the company information about consumer tastes and preferences, which helps to target media content and advertising. On the other hand, meta platforms are the second largest Advertising Technology Company worldwide and ready to earn market share, Morningstar.
The company makes an aggressive investment in artificial intelligence (AI), including special chips, large language models, machine learning models and AI creative tools to propose content. These efforts work. Users spend more time on Facebook and Instagram, and ads conversion rates – so the number of clicks and purchases – both social media features are increasing.
Even more ambitious commodity hopes to automate the entire advertising process until next year. Wall Street Journal “Using Meta Advertising tools, it can offer a image of the product that it wants to introduce with a brand budget target and will create the entire ad, including AI, images, video and text.”
As a result, Meta has made a great shot to provide double -digit income increase for the next few years. I say that advertising technology expenditures are expected to increase by 14% annually by 2032, so Meta will report a faster income increase if it really gains a market share. And this doesn’t even explain An important opportunity in the newly emerging smart glasses market.
Wall Street estimates estimates that earnings will increase by 17% annually in the next three years. This makes it very reasonable, especially when there is an average of 28 times an average of 28 times in two years. Patient investors should feel comfortable in buying a few shares of this AI stock today.
Pure storage, corporate data storage equipment, software and services. All Flash arrays are specialized in storage systems that contain only flash memory instead of slow and less resistant hard disk drives. DirectFlash Architecture offers two to three times the storage density and half of the power consumption as the closest product on the market.
Research company Gartner Recently, Pure Storage has listed as leaders in files and object storage platforms as well as primary block storage platforms. Analysts, pure storage flash feast systems, products that make their products resourceful to support the workload of artificial intelligence, the highest density and the lowest power consumption in the sector, he said.
In this note, pure storage earlier this year announced the new generation of flashblade systems. “Flashblade XL, the industry’s highest performance storage platform for artificial intelligence and high -performance information process will be high -performance information. He said.
In addition, meta platforms have recently chosen the pure storage space to strengthen the data center storage infrastructure, and Giancarlo thinks that direct flash technology can become an industrial standard for all hyperskalers because “unique performance and scalability” reduces operating costs and power consumption.
Wall Street expects Pure Storage’s corrected earnings to grow by 27% annually during the financial year, which ended in January 2027. This makes the 46 -layer -set valuation reasonable, especially when the company is defeated by 14% in the last four quarters. Patient investors should take a small position in this little known AI stock today.
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Trevor Jennewine Nvidia and Palantir technologies have positions. Motley Fool positions and recommends meta platforms, NVIDIA, Palantir Technologies and Pure Storage. He recommends Motley Fool Gartner. Motley Fool’s Explanation policy.
