By Michael Dubois, Head of Corporate at VG Global Holdings 

ChatGPT is hot right now and just about every industry is looking to the future and trying to incorporate artificial intelligence (AI) chatbots which can conduct nearly human-like conversations and performs language-based tasks almost as well as human beings.

The investment world is solely focussed on this new sector and the potential power of AI in the very near future, with numerous potential business applications for this technology, ranging from early detection of disease in humans to real-time data analytics that can streamline manufacturing processes.

I have picked my top 3 recommendations for right now, based on analytics and growth potential within each company.

Alphabet (GOOGL)

This is one of the industry leaders and a global titan, best known as the parent company of Google, its crown jewel and also predecessor – once a humble search engine, today it and its parent company have grown to become an online advertising and web services behemoth – with a market cap of $1.6 trillion , and a 10-year average annualised return of 17.7%. It recently launched a test version of its own AI chatbot called Bard, which functions like ChatGPT, quickly accessing, compiling and summarizing online information to provide an answer to any question – some see this as the next evolution of search, where, rather than querying a search engine to receive a selection of webpages to view, you get one answer that’s both simple and complete. Although the launch was unsuccessful, the company is forward-thinking and unlikely to not grow.

Microsoft (MSFT)

Microsoft was founded in 1975 by Bill Gates and Paul Allen and the company revolutionized computing at the birth of the industry by creating some of the first software that made personal computers accessible to regular people. Microsoft grew at a rapid pace in its early days, and it has continued growing even after the exit of its founders. Microsoft has been investing in OpenAI, the company that developed ChatGPT, since 2019 – the partnership began with a $1 billion investment and the agreement that Microsoft exclusively would provide cloud computing services to the AI lab, and, in January 2023, Microsoft announced that it would extend the OpenAI partnership into a “multiyear, multibillion-dollar investment,” while also stating that it was working towards making AI technology universally accessible through its Azure cloud computing platform.

Nvidia (NVDA)

Nvidia, another true industry leader and titan, was founded in 1993 to produce graphic cards for the burgeoning personal computer market, and now, almost 30 years later, it remains an integrated circuit maker, producing chips that support everything from computers to phones and game consoles, and now also makes high-performance microchips that power AI software and services. In October, Nvidia announced it would expand its long-running AI collaboration with Oracle, and as part of the deal, Oracle will use Nvidia’s full AI platform — chips, systems and software — in its Oracle Cloud Infrastructure, which is a competitor to Amazon’s AWS. The company has a market cap of $1.1 trillion, and a 62.8% 10-year average annualised return, and it has a solid foothold in the industry, with undoubted growth still to come.

The author does not own any stock, option or similar derivative position in any of the companies mentioned, and has no plans to initiate any such positions within the next 72 hours. This article only reflect the author’s own opinions. The author is not receiving compensation for it and has no business relationship with any company whose stock is mentioned in this article.