The demand for artificial intelligence (AI) solutions is expected to skyrocket in the coming years. According to Statista, the global AI market is expected to exceed $1.8 trillion by 2030.
Companies whose products and services accelerate the AI megatrend could see their profits soar. Here are two top stocks that can help you capture your share of the AI gold rush.
1. AMD: Chip Designer
Artificial intelligence cannot be realized without high-performance semiconductors that support cutting-edge technology.Investors were justly rewarded Nvidia Thank you for providing the best AI chip on the market today. But demand is so strong that no one company can meet it alone. Advanced Micro Devices (NASDAQ: AMD) is gearing up to become the next major supplier of power AI tools, and the revenue opportunities are huge.
CEO Lisa Su predicts that sales of AI accelerators (specialized computing hardware that speeds up machine learning workloads) will soar to a staggering $400 billion by 2027. According to some estimates, NVIDIA accounts for about 95% of the AI chips currently on the market. , but AMD has solid plans to gain market share.
AMD’s new MI300 accelerator is designed to power AI applications in the data center. Integrate central processing units (CPUs), graphics processing units (GPUs), and ultra-fast memory to improve performance and energy efficiency when running AI workloads.
microsoft and meta platform Already, people are lining up to deploy AMD’s AI products in their cloud data centers. Major chip buyers are keen to foster competition in the AI chip market in hopes of easing supply shortages. And they think AMD is a worthy challenger to his Nvidia.
Additionally, AMD intends to lead the transition to AI-powered personal computers (PCs). The new Ryzen 8040 series processors make it easier and faster to run AI models on your laptop.Like a major PC manufacturer Dell and HP plans to include AMD chips in its new AI PCs in early 2024. Again, the revenue opportunity for AMD is potentially huge. Technology research firm Canalys predicts that by 2027, 60% of all PCs sold will have advanced AI capabilities.
2. TSMC: Manufacturing giant
With the demand for semiconductors rapidly increasing, there is an urgent need for factories, equipment, and specialized labor to manufacture these products. In this industry, which is becoming increasingly important, taiwan semiconductor manufacturing (NYSE:TSM) reigns supreme.
TSMC manufactures a wide range of chips for enterprises, including: apple, Nvidia, AMD. According to Statista, it accounts for more than half of the semiconductor foundry market. TSMC offers an even larger share of the most innovative chip designs. Approximately 85% of startup product prototypes are manufactured at least partially in our own factories.
Overall, TSMC helped build 11,895 different products with 288 diverse technologies for 528 customers in 2023. These numbers highlight the importance of chipmakers to the global economy. This global relevance is beneficial to the company’s shareholders. TSMC has grown its sales and profits by about 17% every year for 30 years.
CFO Wendell Huang expects TSMC’s revenue to grow 15% to 20% annually over the next few years. Eager to ensure a steady supply of chips to its economy, the government is offering generous tax incentives to encourage TSMC to build factories within its borders. The semiconductor industry leader is working to bring new facilities online in Germany, Japan and the United States to expand and strengthen its global production network.
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Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool’s board of directors. Joe Tenebruso has no position in any stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, HP, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: His January 2026 $395 long call on Microsoft and his January 2026 $405 short call on Microsoft. The Motley Fool has a disclosure policy.
2 Artificial Intelligence (AI) Stocks to Buy Now that Could Make You a Fortune was originally published by The Motley Fool.
