Unlocking the Future of Artificial Intelligence: 3 Stocks to Watch
The artificial intelligence (AI) revolution has taken the world by storm, and investors are eager to capitalize on its growth potential. With the market for AI hardware and software expected to grow at a staggering rate of 40% to 55% per year through 2027, it’s no wonder that AI stocks have been on a tear. However, finding great companies with stocks trading at a fair price can be a challenge. Fortunately, we’ve identified three software and hardware makers that offer an attractive entry point for investors, with each stock trading for around $200.
Alphabet: The AI Pioneer
Alphabet, the parent company of Google, has successfully integrated AI into its core products, revolutionizing the search experience. The new AI overview feature has increased user engagement and satisfaction, while reducing the cost of using generative AI by 90%. Additionally, Alphabet’s advancements in AI have enabled new ways to search the web, such as Circle to Search and Google Lens. Its cloud computing division, Google Cloud, has seen substantial revenue growth, generating $1.9 billion in operating income last quarter. With shares trading at $194, Alphabet looks like a great value, especially considering its scale and distribution capabilities give it an advantage in developing and popularizing AI-driven software.
Qualcomm: The Chipmaker with an AI Edge
Qualcomm, best known for its wireless patents, has been fueling innovation in chipmaking. Its Snapdragon processors, found in most high-end Android phones, are now being designed for Windows PCs with on-device AI capabilities. This shift towards AI-enabled chips could lead to increased market share in smartphones and PCs, as well as a growing presence in the automotive sector. With a share price of less than $160, Qualcomm offers an attractive entry point for investors, especially considering its potential for earnings growth and expansion across multiple devices.
Taiwan Semiconductor Manufacturing Company: The Dominant Force
Taiwan Semiconductor Manufacturing Company (TSMC), the largest chip manufacturer in the world, has been a clear winner in the AI chip market. Its advanced technological capabilities have earned it a dominant market share, with over 60% of all spending for semiconductor foundries. TSMC’s revenue increased 39% in the third quarter, with earnings soaring 54% due to demand for AI-related chips. With a growing need for high-end processing capabilities across devices, TSMC is poised to command an even greater share of semiconductor production, making it a no-brainer for investors at its current price of around $200.
These three AI stocks offer an attractive entry point for investors, with each trading for around $200. With strong growth potential and a dominant position in their respective markets, they’re well-positioned to capitalize on the AI revolution. Don’t miss out on this opportunity to invest in the future of artificial intelligence.
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