Image caption, Google and its paranet company Alphabet have spent huge amounts on AI. Google parent Alphabet saw its business continue to grow in recent months, yet growing spending on artificial intelligence (AI) infrastructure put its leftover cash into negative territory. The company's free cash flow, the cash it maintained after paying for operations and investments, came in at negative $5.9bn (£4.3bn) for the first time in at least a decade, according to its past financial records. Alphabet's spending on AI is now expected to hit as much as $205bn this year, an increase from $190bn, as major tech companies race to build around a new wave of the technology. Meanwhile, Alphabet's combined quarterly revenue hit $119.8bn, up 23% compared with the same time last year. But the company's stock fell 4% in after hours trading.

In this article, I would like to start with a recent announcement that Microsoft (NASDAQ:MSFT) made and then show how, even though it may be of little relevance, it offers once again the opportunity to understand how Microsoft runs its business and, most important, defends its wide moat. I really enjoy carrying out this kind of research, especially when I have to deal with a very large company such as Microsoft. In fact, I think that very often, understanding well how one particular choice works, enables me to get a grasp of the whole company better than if I were to analyze only its financials without diving into some of its operations. Let's get to the announcement: Microsoft is launching Microsoft Designer, a graphic design app in Microsoft 365 that helps users create social media posts, invitations, digital postcards, graphics, and more, all in a flash. The most important feature is that Microsoft Designer is powered by AI technology, including DALL E 2 by OpenAI, which enables to instantly generate a variety of designs with minimal effort.

World-renowned semiconductor producer Nvidia is widely regarded as a pioneering force behind artificial intelligence (AI), and it remains a leader in the field today. But AI is a rapidly growing industry with plenty of room for other contributors, and in fact, some experts predict the majority of companies will be using AI by 2030, adding $13 trillion in value to the global economy. Therefore, while Nvidia is a $413 billion giant today, three Motley Fool contributors think C3ai (AI -0.70%), Riskified (RSKD 0.69%), and CrowdStrike (CRWD 0.83%) are artificial intelligence powerhouses of the future. Anthony Di Pizio (C3ai): One thing the artificial intelligence industry is missing is accessibility. Typically, only large technology companies with the financial resources and the ability to attract talented developers have been able to use AI in a meaningful capacity.

Just about everyone knows artificial intelligence (AI) is taking hold in many parts of our lives. What most people are referring to when they say AI is actually machine learning (ML) -- the use of algorithms to mimic the way humans take in information and gradually learn to make more-accurate predictions. Some companies are doing it better than others. Three that are doing it well are trading at attractive valuations right now. Upstart ( UPST -2.06%), Microsoft ( MSFT 0.62%), and JPMorgan Chase ( JPM -0.30%) are all market leaders investing heavily in AI innovation.

Faced with disruption from the pandemic last year and ongoing uncertainty about shifting consumer trends, many businesses are in need of help. Artificial intelligence can add a much-needed shot of predictability, efficiency, and flexibility to business operations, making it a hot item in the software realm right now. As corporate budgets start to thaw this year along with a gradually reopening economy, AI applications are expected to receive plenty of attention. As an investor, if you want to get in on that increased attention, three names in AI worth considering in April are Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), Invitae (NYSE:NVTA), and Medallia (NYSE:MDLA). Plenty of tech stocks got clobbered in March. Many of them were overdue for a pullback after rising double- or triple-digit percentages in 2020.

BlackBerry (TSX:BB)(NYSE:BB) stock is rebounding as its re-brand as a leader in artificial intelligence and cybersecurity catches on in the technology community. BlackBerry's financial performance are all green-lighting long positions in the stock. The company has restored its levered free cash flow to $162.88 million. The positive free cash flow is a sign that the stock has successfully turned around. Levered free cash flow is a popular measure of actual shareholder returns considering financing. A positive levered free cash flow is excellent for shareholders, while a negative free cash flow means a good portion of the company's profits allocates to financing costs.

Over the last 20 years, the growth of the internet and the subsequent emergence of mobile and cloud computing have disrupted IBM (NYSE:IBM). As IT spending at companies has shifted to the cloud, Big Blue has scrambled to shed old assets and invest in new technologies to pave the way for growth. But the damage has been done: Over the last five years, shares of IBM have badly trailed the broader market, down 24% compared to the S&P 500 return of 51%. On the other side, Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) has emerged as one of the most dominant companies in the world. The stock has doubled in the last five years, beating the broader market.

Xilinx (NASDAQ:XLNX) is sitting on a massive opportunity thanks to the growing demand for its chips in the field of artificial intelligence (AI). The chipmaker controls the majority of the field-programmable gate array (FPGA) market -- chips that are finding traction in AI applications -- by successfully keeping rival Intel (NASDAQ:INTC) at bay on the back of solid product development moves. But AI is just one of the reasons why you should consider Xilinx for your portfolio. The chipmaker pays a dividend that's well above the tech sector's average yield of 1.11%, and it has been increasing every year since 2011. But with Intel breathing down its neck, will Xilinx be able to sustain the growth of its dividend?

Chipmakers have been a red-hot sector for what now seems like forever. In the last five years, the Philadelphia Semiconductor Index has advanced nearly 200%, versus the S&P 500's total return of 90%. Perhaps the most notable chipmaker during this period is GPU-maker NVIDIA, as its stock increased 1,800%. This article originally appeared in The Motley Fool. Against that backdrop, you can forgive investors for overlooking other companies in the sector, which is exactly what has happened to Texas Instruments (NASDAQ:TXN).

Just days later, we got our first hint Buffett himself was buying Apple (NASDAQ:AAPL)! Followed shortly after by that bombshell CNBC interview (here's the transcript), where he revealed an $18 billion plus Apple investment*, the vast majority bought by him in January and recent months (and the rest by Todd and Ted in early-2016). What better confirmation of my assertion that value investors - even the greatest of them all, at 86 years of age - would be wise to pose such a question to themselves? In fact, I wonder if it's the largest stock investment ever made by a single investor (again, in terms of cost)? Sure, Todd, Ted, and Charlie did provide some inspiration and feedback here, but we can be sure Buffett never buys anything until he makes his own mind up! Thoughts?] Was I confident I'd see Buffett talking up an Apple position just weeks later? And maybe I chose it specifically as the largest, most obvious and controversial value stock out there. Not to mention, the head fake I pulled: While I did summarize its attractive fundamentals and valuation, my post clearly wasn't intended to be a detailed thesis. But hey, it was still the right question at the right time, so I'll take the kudos!