Elon Musk's xAI has scored an early win for real-world AI monetization after its Grok 4.20 model outperformed rivals from OpenAI and Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google in a live stock trading competition.Grok 4.20 Tops Alpha Arena Live Trading LeaderboardGrok 4.20, an artificial intelligence model developed byMusk-led xAI, emerged as the top performer in Alpha Arena Season 1.5, a competition that pits AI models against each other in live stock trading using the same starting capital.Accordi ...

Core Viewpoint - The article discusses three distinct AI stocks that investors should consider for long-term investment, highlighting their unique attributes and potential in the AI sector. Group 1: Alphabet (GOOGL) - Alphabet is characterized as a stable investment with a high floor due to its established position in AI and cloud computing, making it a reliable choice for investors [5][8] - The company reported a market capitalization of $3.8 trillion and generated $74.1 billion in revenue from its core digital advertising business in Q3 [7] - Alphabet's ongoing investments in autonomous vehicles and quantum computing further enhance its growth prospects, making it a dependable option for buy-and-hold investors over the next three to five years [8] Group 2: Tesla (TSLA) - Tesla represents a high-risk, high-reward investment, with CEO Elon Musk emphasizing the potential value of its humanoid robot, Tesla Optimus [9][12] - The company has a market cap of $1.5 trillion, but its core vehicle business has faced challenges in recent quarters, which could impact stock performance [10][12] - The humanoid robotics market is projected to grow into a $5 trillion total addressable market by 2050, presenting significant upside potential for Tesla [11] Group 3: International Business Machines (IBM) - IBM is positioned as a rare AI dividend stock, appealing to investors seeking income alongside growth, with a dividend yield of 2.27% [13][15] - The company has a market cap of $277 billion and has raised its dividend for 29 consecutive years, reflecting its long-term growth capabilities [14][15] - IBM is actively expanding its AI ecosystem through mergers and acquisitions, with anticipated earnings growth at a high-single-digit annualized rate over the next three to five years [16]

Core Viewpoint - Meta has denied reports suggesting it is considering using Google's AI models for its advertising business, stating that it is only using them for benchmarking purposes [2][3]. Group 1: Meta's AI Strategy - Meta has a history of developing its own proprietary ad targeting and recommendation systems, and it regularly evaluates third-party tools for benchmarking [3]. - The consideration of using Google's AI models may indicate that Meta has encountered challenges with its own AI systems and is seeking interim solutions while refining its Llama AI models [4]. - CEO Mark Zuckerberg highlighted that AI has already improved advertising efficiency, with ad conversions increasing by 5% on Instagram and 3% on Facebook in the last quarter [5]. Group 2: Future Plans and Recruitment - Meta aims to create and target advertisements using AI by the end of 2026, which is a crucial part of Zuckerberg's vision for the company's future [5]. - The company has undertaken a significant recruitment drive to attract AI professionals, offering substantial compensation packages in some cases [6].

Core Viewpoint - Alphabet's Q1 2025 earnings report exceeded expectations, positively impacting Google stock performance [1][2] Financial Performance - Q1 2025 earnings per share (EPS) were $2.81, surpassing consensus estimates of $2.01 [1] - Revenues reached $90.23 billion, exceeding the expected $89.12 billion [1] Stock Market Reaction - Following the earnings call, GOOGL stock price increased from $159.28 to $160.78, reflecting a 0.94% rise in pre-market trading [2] - The stock avoided the typical post-earnings dip seen in other tech stocks [2] Analyst Insights - Analyst Ivan Feinseth reaffirmed a 'Strong Buy' rating for GOOGL and raised the price target from $220 to $240, indicating a potential 49.27% upside [4][7] - Feinseth emphasized Google's unique advantage in the AI sector, which allows the company to develop its entire technology stack [5][7] Growth Drivers - Ongoing AI innovation and partnerships, such as with Apple, are expected to enhance Google's advertising and cloud revenue growth [8][9] - The anticipated increase in advertising and cloud monetization is projected to drive revenue and cash flow growth [8] Market Sentiment - The positive quarterly results and new partnerships are likely to foster favorable market sentiment and stock price movement in the near term [9]