Two Best Artificial Intelligence (AI) Growth Stocks to Buy Now

Savvy investors are looking for ways to cash in safely on the artificial intelligence (AI) boom. The game-changing technology is expected to bring huge cost savings and productivity gains to companies that adopt it. According to consulting firm PricewaterhouseCoopers (PwC), by the end of this decade, AI will bring as much as 15.7% of the global economy's GDP to the ground.Trillions of dollars The growth.

Companies that help their customers harness the power of artificial intelligence are likely to generate strong returns for investors. Read on to learn about two tech leaders that are particularly well-positioned to deliver AI profits to shareholders.

Advanced Micro Devices, Inc.

NvidiaIt's one of the biggest winners of the AI boom, and rightly so. The semiconductor giant makes most of the chips that power the most advanced AI applications. But demand for these 耑 chips is so high that companies of all stripes are scrambling for more supplies, and theAdvanced Micro Devices (NASDAQ: AMD)It is intended that more supplies will be made available.

Lisa Su, the company's chief executive officer, believes that by 2027, so-called AI gas pedals will generate a $400 billion business opportunity to help accelerate the machine learning workload in data centers. amd is looking to make a name for itself in this booming market. It believes that its powerful new chipsets will enable it to do so.

The company's MI300 gas pedal combines a central processing unit (CPU), graphics processing unit (GPU), and high-bandwidth memory in a single, innovative design.Meta Platforms respond in singingMicrosoft Companies like AMD are very interested in the performance and efficiency gains that AMD chips could bring to cloud computing operations. Major chip buyers want to see more competition in the tightly supplied AI chip market, and they're likely to send a lot of business to AMD.

AMD is also looking to tap into the new wave of artificially intelligent personal computers (PCs). The chipmaker's high-performance Ryzen 8040 processor can run AI applications more efficiently on laptops and other mobile devices.Dale, Leading computing device makers such as Acer and Lenovo have begun offering AMD's new AI processor in their latest PCs. This is just the beginning of what could become a huge trend. According to Canalys, by 2027, 60% PCs will be capable of running accelerated AI applications.

Taiwan Semiconductor Manufacturing Industry

Chips designed by AMD, Nvidia, etc. have to be physically assembled by someone. This is where the powerfulTaiwan Semiconductor Manufacturing Co.corporation(NYSE: TSM)The company is a leading provider of semiconductor foundry services. The leading semiconductor foundry services provider produces a wide range of the world's most technologically advanced electronic components.

In 2023, TSMC utilized nearly 300 different technologies to produce nearly 12,000 unique products for more than 500 customers. Major customers includeApple Inc.,Intel Corporationrespond in singingBroadcom CorporationWe are a leading designer and purchaser of chips, as well as many other major chip designers and purchasers.

TSMC's leadership in the foundry market and its far-reaching impact on the global economy have paid off handsomely for its investors. The company's revenues and earnings have grown at a rate of more than 17% per year for three decades, and since 2004, when it began paying dividends, the company has provided its shareholders with reliable cash payments.

You can expect this strong financial performance to continue. Governments are throwing billions of dollars in tax incentives at TSMC to build new manufacturing sites, strengthen its supply chain and secure increasingly important access to the latest chips. TSMC also plans to build plants in the United States, Germany and Japan in the coming years.

Demand for AI chips has fueled the tech giant's growth. in March, TSMC's net income rose 34% year-on-year to NT$195.2 billion (about US$6.1 billion). the company's net income rose by 1.3% year-on-year to NT$190.2 billion (about US$6.1 billion).

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Randi Zuckerberg, former Facebook Market Development Arbitrator and Spokeswoman, and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's Board of Directors. Joe Tenebruso has no position in any of the stocks mentioned above. The Motley Fool has no position in any of the stocks listed above. The Motley Fool recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and Intel, as well as the following options: Intel January 2023 $57.50 Call Long, Intel January 2025 $45 Call Long, Microsoft January 2026 $395 Call Long, Microsoft January 2026 $405 Call Long, and Microsoft January 2026 $405 Call Long. January 2026 $405 call option short, and Intel May 2024 $47 call option short.The Motley Fool has a disclosure policy.

The Two Best Artificial Intelligence (AI) Growth Stocks to Buy Right Now was originally published by The Motley Fool.