2 Artificial Intelligence (AI) Stocks to Buy Now That Can Make You Lucky

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The demand for artificial intelligence (AI) solutions is set to skyrocket in the coming years. According to Statista, the global AI market will exceed a staggering $1.8 trillion by 2030.

Image source: Statista.

Businesses that provide products and services that fuel the AI ​​megatrend are likely to see increased profits. Here are two top stocks that can help you claim your share of the AI ​​gold rush.

1. AMD: Chip Designer

Artificial intelligence would not be possible if not for the high-performance semiconductors that power modern technology. Investors have rightly rewarded. Nvidia To deliver some of the best AI chips on the market today. But the demand is so strong that one company alone cannot meet it. Advanced Micro Devices (NASDAQ: AMD ) Power is poised to become the next big supplier of AI tools — and has a huge profit opportunity.

CEO Lisa Xu expects sales of AI accelerators — specialized computing hardware that accelerates machine learning workloads — to grow to a staggering $400 billion by 2027. By some estimates, Nvidia currently accounts for about 95% of the AI ​​chips on the market. , but AMD has a solid plan to win market share.

AMD’s new MI300 accelerators are designed to power AI applications in data centers. They integrate central processing units (CPUs), graphics processing units (GPUs), and ultra-fast memory to increase performance and energy efficiency while running AI workloads.

Microsoft And Meta platforms are already lining up to deploy AMD’s AI offerings in their cloud data centers. Major chip buyers are keen to boost competition in the AI ​​chip market, hoping it will alleviate supply shortages. And they see AMD as a worthy challenger to Nvidia.

Additionally, AMD plans to move into AI-powered personal computers (PCs). Its new Ryzen 8040 series processors make running AI models on laptops easier and faster. PC manufacturers are the leaders. Deal And HP plans to feature AMD’s chips in its new AI PCs as early as 2024. Here too, AMD’s profit opportunity is potentially huge. Tech research firm Canalys estimates that by 2027, 60% of all PCs sold will have advanced AI capabilities.

2. TSMC: Manufacturing Titan

With the increase in demand for semiconductors, there is an urgent need for factories, equipment and specialized manpower to manufacture these products. In this increasingly important industry, Taiwan Semiconductor Manufacturing (NYSE: TSM ) reigns supreme.

TSMC manufactures a wide range of chips for companies, including apple, Nvidia, and AMD. According to Statista, it accounts for more than half of the semiconductor foundry market. TSMC provides an even larger portion of the latest chip designs. About 85% of startup product prototypes are manufactured, at least in part, in its factories.

All told, TSMC helped build 11,895 different products with 288 different technologies for 528 customers in 2023. These figures highlight the chipmaker’s importance in the global economy. This global relevance has served the company’s shareholders well. TSMC has grown its sales and profits by about 17% annually for 30 years.

CFO Wendell Huang expects TSMC’s revenue to grow 15% to 20% annually in the coming years. Governments, eager to ensure a steady supply of chips to their economies, are offering generous tax breaks to entice TSMC to build factories within their borders. The semiconductor leader is working to bring online new facilities in Germany, Japan and the US to expand and strengthen its global manufacturing network.

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Randy Zuckerberg, former director of market development and spokeswoman for Facebook and sister of MetaPlatforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Joe Tenebrosso has no position in any stocks. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, HP, MetaPlatforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a Disclosure Policy.

2 Artificial Intelligence (AI) Stocks to Buy Now That Could Make You Lucky was originally published by The Motley Fool.

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