Google, NVIDIA, IBM, and others are turning up the heat on Microsoft

What's the hottest name in AI? Microsoft MSFT, -1.75%. Microsoft has once again shown its commitment to leading the era of artificial intelligence through its recent investment in OpenAI, best known for its chatbot ChatGPT3, which has taken the world by storm.

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Given all the news articles about Microsoft's rapid rise in the AI field, it shouldn't be a surprise that investors in the sector are excited about the company's prospects in the future. Currently, Microsoft's Bing sits at around 7% of the search market and is the second-largest search engine in the world. Recently, Microsoft shared with investors that they expect an additional $2 billion in revenue each year if they gain 1% market share in the near future. Microsoft has a huge opportunity here.

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Even so, the demand for artificial intelligence is expected to grow at close to a 20% compound annual growth rate by 2020, and Microsoft isn't the only option for investors looking for long-term investments in AI. 

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Investors should keep an eye on these three companies that are making significant investments in AI.

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Alphabet

If Microsoft has been the winner over the past few weeks, it has mostly been because Alphabet's GOOGL, -0.68% of Google's stock price, has suffered a loss. The Microsoft vs. Google race is not yet over, but anyone who calls the race over at this point is doing so at their own risk.

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Despite the fact that Microsoft is on the front foot and has shown off some amazing technology - putting Google's search empire in danger for the first time in more than two decades - don't expect Google to stand still and wait for Microsoft to take significant market share away from them.

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Rather than announcing ChatGPT as its next-generation competitor, the company announced Bard as its next-generation rival and is starting a wave of announcements in order to counter the recent changes from Microsoft. Although Google has been actively investing in breakthrough artificial intelligence for its search and cloud businesses, and while it may have to accelerate its development process and product launches to keep up with the demands of investors, it's hard to imagine that Google won't come up with a compelling AI story that investors will take seriously. 

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ServiceNow

ServiceNow NOW, -1.49% is in a great position. With businesses pouring more resources into digital transformation projects, workflow automation will only become increasingly important.

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There was a time when automation had to do with scripted processes, which could be repeated with the help of a piece of code. In the future, workflows will be fluid and self-improving in order to enable businesses to make better use of larger sets of data in order to streamline almost every aspect of their business processes. As well as this, ServiceNow's platform is highly flexible and is capable of acting as an orchestration layer that can be applied to a wide range of complex and diverse enterprise IT environments. This capability will be more prominent and less complex for enterprises as a result of AI, which will be a catalyst for further growth in the future. 

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NVIDIA

The NVIDIA NVDA, -2.43% company has been the most closely associated with being the enabler of AI in recent years than any other company. In order to train and infer in consumer and enterprise applications, the company has been building the full stack of AI building blocks, including the hardware, software, and frameworks that are required for training and inference in these applications.

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There has been a significant change in the way programmers are able to leverage the power of GPUs over the last few years thanks to NVIDIA. The result has led to AI-powered innovations in gaming, automotive, and data centers, among others. In order to build digital twins for automotive engineers, which will be a crucial part of the future of immersive digital experiences in the future, NVIDIA hardware and software, such as the Omniverse tools, will be leveraged to combine the metaverse, such as building digital twins for automotive engineers.

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It is only a scratch on the surface of what NVIDIA has contributed to the field of artificial intelligence. It can be argued that NVIDIA is undoubtedly going to continue to be a core holding for investors looking to make money in the AI space, from its recommendation engines to its conversational AI models. Furthermore, the stock price of its stock is well below its highs of 2021, which shows that it has a significant potential for upside as technology returns to vogue in the near future. 

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Here are six other AI plays worth watching

IBM

AI has been one of two major catalysts driving Big Blue IBM, -1.14% stock over the past year. As a means of achieving sustainable growth, the company is fully committed to artificial intelligence. 

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Oracle

It can build prebuilt AI models based on Oracle's ORCL, -a 1.27% massive business dataset. Although Oracle AI is still in its infancy, the company appears to have solid long-term prospects. 

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Meta Platforms

META, -1.40% had a rough year in 2022, but it has always been able to monetize its user base using AI and machine learning.

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Workday

Using artificial intelligence, Workday WDAY, -1.33% optimizes hiring processes and manages enterprise-wide spending.

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Salesforce

As Salesforce CRM, -1.40% gains a new activist shareholder, I expect the company to accelerate innovation, including its AI offerings, including Genie. 

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Amazon.com

Amazon's AMZN, -2.01% business is infused with AI almost everywhere. Across a multitude of AWS services for enterprises and e-commerce powered by AI from pricing to delivery the next day.