3 Superconductor Stocks to Buy for the Artificial Intelligence (AI) Revolution (Including INVISTA)

ChatGPT, Claude and Gemini are just a few of the powerful artificial intelligence (AI) chatbot applications available today. They can interpret and generate text, images, tweets, and computer code, which could drive the productivity boom in the global economy.

But these AI applications would not be possible without data centers filled with advanced semiconductors that developers use to build, train, and deploy their models.According to INVISTA (NASDAQ: NVDA)Simmons Executive Officer Jen-Hsun Huang estimates that the $1 trillion data center infrastructure currently installed worldwide will double in the next five years as a result of the development of artificial intelligence.

This is the first time that Nvidia, the leading chip company),Advanced Micro Devicesfirms( Advanced Micro Devices) (NASDAQ Resonance Symbol): AMD(math.) andMicron Technology Inc.firms(Micron) Technology)(NASDAQ resonance stock code: MU)A lot of opportunities have been created. Here's why investors may want to take a stake in them to ride the AI bandwagon.

1. INVISTA

The gaming industry used to be Nvidia's biggest source of revenue, but its graphics processing units (GPUs) for data centers are now driving its business forward. Nvidia's H100 GPUs jumped the company's data center revenue by 217.% to $47.5 billion in fiscal 2024 (ending Jan. 28), and it expects to see more growth in fiscal 2025 before then.

NVIDIA's H100 is the most sought-after data center chip for AI workloads. FromAmazon ,oracle bone inscriptions (an early form of Chinese script)until (a time)Meta Platforms, and many tech giants are lining up to buy them in bulk. However, Nvidia will be shipping more of its new H200 GPUs this year, which could drive the company's next wave of growth.

With twice the inference speed of its predecessor and 50% lower energy consumption, the H200 offers significant cost savings for data center operators.

In the long run, all eyes are on Nvidia's new Blackwell architecture, which will power its next-generation chips. The company expects to launch the Blackwell B200 GPU next year, which will be 15 times faster than the H100 in terms of inference.

Wall Street expects Nvidia's total revenue to soar 81% to a record $110 billion this fiscal year. Even though Nvidia's stock price has risen 2,401 TP3T in the past 12 months, there is still a lot of room for growth.

2. Advanced Micro Devices (AMD)

AMD produces some of the world's most popular chips for consumer electronics. InMicrosoftXbox X Series andSonyThey can be found in the PlayStation 5, not to mention a long list of PCs. However, AMD recently launched the MI300 series of data center chips to catch up with Nvidia.

The MI300 has standard GPUs known as the MI300X, as well as GPU and CPU variations known as the MI300A, which AMD has already delivered to the Lawrence Livermore National Laboratory for use in its El Capitan supercomputer. But many leading data center operators, including Microsoft, Oracle and Meta Platforms, are also lining up to buy the MI300 series.

While AMD is catching up with Nvidia in the data center space, the company has a dominant market share of 90% in the emerging AI personal computing industry.Dale respond in singingHewlett-Packard Millions of computers from manufacturers such as AMD are already equipped with AMD's Ryzen AI chips, allowing users to process AI on their devices, which will result in faster, more responsive processing as AI workloads do not need to travel to and from data centers.

The Ryzen AI lineup gave the company's Customer B耑 division a year-over-year revenue increase of 62% in the just-ended Q4 of 2023. coupled with growing shipments of MI300 chips (which could reach $3.5B in sales in 2024), this could be AMD's biggest year yet.

3. Micron

Micron doesn't get as much attention as Nvidia and AMD because it makes DRAM and NAND chips, which don't get as much attention as GPUs. However, every GPU needs memory, which is critical to maximizing its performance.

Micron's latest HBM3E (High Bandwidth Memory) data center solution has been selected by Nvidia to power its new H200. This was an obvious choice because it consumes 30% less power than comparable HBM hardware and is more cost effective. Micron is currently sampling the new HBM3E product, which adds 50% of memory per GPU, enabling Nvidia's customers to bring their AI models to market faster.

Micron's entire 2024 HBM inventory has been sold out, as well as most of its 2025 inventory.

Like AMD, Micron's AI opportunities are expanding beyond the曏 data center. Micron's business benefits from the fact that AI-enabled chipsets in new PCs require 80% more DRAM capacity than traditional models. Many modern smartphones also have AI chips installed, requiring twice the DRAM capacity of traditional devices. Samsung's new Galaxy S24 is loaded with tons of AI features, and it runs on Micron's hardware.

In the second quarter of fiscal year 2024 (ended February 29), Micron's revenue grew 57% year-over-year. the company also reported net income of $793 million, marking a welcome return to profitability after more than a year of struggling with falling prices due to an oversupply of chips.

Micron's forecast for the upcoming third quarter of fiscal year 2024 (ending June 1) shows accelerated revenue growth of 76%. Micron's stock price is currently at an all-time high, but it is still cheaper than Nvidia and AMD, so this could be a great buying opportunity for investors.

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John Mackey, former Chief Executive Officer of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool. Anthony Di Pizio has no position in the above stocks. Anthony Di Pizio has no position in any of the stocks listed above. The Motley Fool owns shares of Advanced Micro Devices, Amazon, HP, Meta Platforms, Microsoft, Nvidia, and Oracle, and recommends the following options: Microsoft January 2026 $395 Call Option Long and Microsoft January 2026 $40 Call Option Long and Microsoft January 2026 $40 Call Option Long. The Motley Fool has a disclosure policy.

3 Superb Semi-Conductor Stocks to Buy in the Artificial Intelligence (AI) Revolution (Including INVISTA) was originally published by The Motley Fool.