AI Stocks to Invest in August: Top Picks

Published Date: 7/08/2024

Nvidia, AMD, and TSM are leading the AI revolution, and their stocks are worth considering for long-term investment.

The artificial-intelligence market is just getting started, and companies are spending billions to create new products and services. To find the best AI stocks, it's essential to separate the leaders from the followers. Here are three AI stocks that stand out.

  Nvidia is a leader in the AI world, holding an estimated 70% to 95% of the AI chip market. The company's latest H200 chip is in high demand, with CEO Jensen Huang stating that supply can't meet demand. As tech companies continue to upgrade their data centers, Nvidia's chips will likely see increased sales. With a 10% decline in its share price over the past month, Nvidia's stock is opening up a buying opportunity for investors.

  Advanced Micro Devices is another leading semiconductor company powering the AI revolution. Its data center sales, including AI chip sales, more than doubled in the second quarter. The company's Instinct GPUs are in high demand, leading to a raise in 2024 data center guidance. With AMD's stock underperforming its AI peers, investors have a nice buying opportunity.

  Taiwan Semiconductor Manufacturing makes the semiconductors that Nvidia and others design. The company's scale is nearly unmatched, manufacturing about 90% of the world's most advanced chips. TSM's sales increased 32.8% in the second quarter, driven by AI chip demand. Despite some risks of geopolitical uncertainty, the recent pullback on TSM's stock price has given investors an opening.

FAQS:

Q: What is the current state of the artificial-intelligence market?

A: The artificial-intelligence market is just getting started, with companies spending billions to create new products and services.

Q: What is Nvidia's position in the AI chip market?

A: Nvidia holds an estimated 70% to 95% of the AI chip market.

Q: What drove AMD's data center sales in the second quarter?

A: AMD's data center sales, including AI chip sales, more than doubled in the second quarter, driven by demand for its Instinct GPUs.

Q: What is the biggest risk facing TSM?

A: The biggest risk facing TSM is geopolitical uncertainty, particularly if China invades Taiwan in the future.

Q: Why are these three AI stocks worth considering for investment?

A: These three AI stocks offer a great opportunity for long-term investment due to Nvidia's leading position in the AI chip market, AMD's impressive data center growth, and TSM's unmatched scale.

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