Core Insights - The holiday season is expected to see increased consumer enthusiasm for AI, particularly in gift shopping [1] - The market is currently focused on the competition between major players in the AI space, including Alphabet, OpenAI, and Nvidia [2][3] - Alphabet's stock has seen significant gains recently, reflecting market optimism about its AI capabilities [3][4] Company Analysis - Alphabet is viewed as a leader in the AI space, but the competition is fierce, with other companies like Meta and OpenAI also making significant advancements [3][4] - Meta is highlighted as having a strong return on investment (ROIC) from its AI spending, with ad growth accelerating to the 20-25% range due to AI tools [6][11] - Meta's annualized recurring revenue from AI performance ad tools is projected to be $60 billion, which is expected to cover its increased capital expenditures [6][8] Market Trends - The shift in advertising spend from legacy media to performance media is benefiting Meta, which is dominating this new landscape [11][12] - AI is driving a noticeable return on investment in advertising, particularly for Meta, and this trend is expected to continue [13] - Amazon is also positioned to benefit from AI, especially in its AWS segment, with new deals and upcoming announcements expected to enhance its e-commerce business [14][15]