Like many new technologies, generative artificial intelligence (AI) has become a bit of a hype cycle, and investor excitement is beginning to overshadow fundamentals. But like every hype cycle in the past, this one will mature. And the AI companies with the strongest business models will stand the test of time.

Let's explore some reasons why Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN) look to be among the best in an increasingly competitive field, and could make excellent buys in 2024.

If you liken the artificial intelligence boom to the California Gold Rush, Nvidia would sell the picks and shovels instead of mining for gold. This strategy gives the company a massive market opportunity and shields it from rising competition in the more consumer/client-focused side of the industry. And despite its market cap of $1.21 trillion, investors aren't too late to bet on the chip makers' long-term potential.

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Source Fool.com