Artificial Intelligence (AI) Spending Is Set to Hit $631 Billion in 2028: 1 Magnificent Stock to Buy Right Now Before That Happens

Market research firm IDC recently released a report stating that the global artificial intelligence (AI) market is now worth $235 billion, and the good part is that this technology still has a lot of room for growth over the next five years.

IDC estimates that global spending on AI and generative AI could hit $631 billion in 2028. There are several ways for investors to benefit from this massive opportunity. From hardware companies such as Nvidia to software providers such as Palantir and cloud computing companies such as Oracle, investors can be spoiled for choice when looking to buy an AI stock right now.

Cloudflare (NYSE: NET), however, may not be on many investors' minds when scouting for an AI stock to add to their portfolios. The company has made its name in the cybersecurity industry by helping customers secure their internet connections while improving the reliability and quality of the connections at the same time. However, it is now making a concerted push in the AI market as well.

Let's take a closer look at Cloudflare's AI-focused initiatives and check why this technology has the potential to supercharge its growth.

Cloudflare has set its sights on lucrative AI markets

Cloudflare has been using its cybersecurity credentials to bolster its prospects in the cloud AI space. In September last year, the company launched the Workers AI platform through which developers can run AI inference applications on Cloudflare's network. The company has been procuring Nvidia's GPUs (graphics processing units) and networking switches to build an edge AI network in cities across the globe that will allow developers to make AI apps without having to purchase any hardware of their own.

Cloudflare says that it has now deployed GPUs across 180 cities globally. This number has the potential to go higher, considering that the company has data centers in 300 cities worldwide. The company says that it intends to "make it possible for any organization globally to start deploying AI models -- powered by Nvidia GPUs, networking, and inference software -- without having to worry about managing, scaling, optimizing, or securing deployments."

In simpler words, organizations and developers looking to jump onto the AI bandwagon can simply rent Cloudflare's infrastructure without having to incur the huge capital expenses they would have had to if they were to buy their own GPUs and deploy their own servers. It is worth noting that the infrastructure-as-a-service (IaaS) market that Cloudflare is targeting with this strategy is expected to be worth $580 billion in 2030.