“Over time, it takes just a few winners to work wonders.”
— Warren Buffett, from the 2022 Berkshire Hathaway letter to shareholders
It’s the magic of a single thriving stock that can pave the road to gold. And there’s no one who embodies this truth better than the Oracle of Omaha.
Unraveling Microsoft’s AI Potential
Topping the list is Microsoft (NASDAQ: MSFT). The tech giant, once a launchpad to fortunes for former CEOs Bill Gates and Steve Ballmer, has reemerged as the largest company globally, boasting a market cap surpassing $3 trillion. Fueled by a multitude of AI-related endeavors, Microsoft stands at the horizon of generating substantial wealth.
Microsoft’s cloud services business is a cash cow, raking in $25.9 billion in the last quarter. Second only to Amazon Web Services globally, this segment is poised to profit from the AI surge. Additionally, its partnership with OpenAI, the visionary behind ChatGPT, cements Microsoft’s position in the race for the next big AI breakthrough.
Moreover, Microsoft’s often underestimated search, news, and advertising segment, supplemented by ChatGPT-powered features added in recent times, is gaining market share and exhibiting robust growth rates. With multiple avenues towards AI wealth creation and a proven track record, Microsoft shines as a beacon for potential investors.
The Cybersecurity Fortunes of CrowdStrike
Next in line is CrowdStrike (NASDAQ: CRWD). While not of Microsoft’s scale, CrowdStrike is poised to foster wealth through its state-of-the-art AI-powered cybersecurity solutions.
The company’s cybersecurity platform stands as a pinnacle in the industry, safeguarding networks, endpoints, and data with tailored add-on modules. Leveraging a scalable model, CrowdStrike’s products gain efficacy with increased data inputs, offering customers evolving protection. Notably, its AI benefits from a network effect as more organizations adopt its platform, akin to how local law enforcement relies on shared databases for efficient crime prevention.
Financially, CrowdStrike is flourishing, with revenue soaring to $786 million in the last quarter and annual recurring revenue hitting $3.15 billion. This sustained growth trajectory, coupled with the rising cyber threats landscape, positions CrowdStrike as a promising investment destination.
Nvidia’s Ascendancy in the AI Realm
Last but certainly not least is Nvidia (NASDAQ: NVDA). Unquestionably, no other company has surfed the AI wave with as much finesse and height as Nvidia. Firmly established as America’s third-largest public company, Nvidia embodies the epitome of AI success.