10 No-Brainer AI Stocks to Buy Right Now
Keithen Drury
The Motley Fool article discusses the current opportunities in investing in artificial intelligence (AI) stocks, emphasizing two main categories: facilitators and deployers. Facilitators are companies that create the foundational hardware for AI, such as Nvidia with its GPUs, which have been integral to AI development. Advanced Micro Devices (AMD) also competes in this domain, though with less dominance than Nvidia but still showing substantial growth.
Other key players in the facilitation space include Broadcom, which develops custom AI accelerators known as XPUs. These products are tailored for specific workloads, outperforming traditional GPUs in certain tasks. To produce their chips, companies like these rely on Taiwan Semiconductor Manufacturing (TSMC), the leading contract chipmaker, projecting significant growth in AI chip production. ASML Holding, which manufactures machines for chip production, stands to benefit from this increased demand.
The deployers are companies like Alphabet, Amazon, and Meta Platforms, which are heavily investing in AI to enhance their products. These companies, known as AI hyperscalers, are expanding their AI resources to improve efficiency and reduce costs, potentially yielding growth. Public interest in AI is driving further integration into service offerings, such as Amazon’s cloud computing services, essential for developing AI technologies.
Additionally, companies like Adobe and SentinelOne are integrating AI into their services. Adobe's AI tools continue to boost its growth despite competitive pressures. SentinelOne offers AI-driven cybersecurity solutions, demonstrating strong performance with notable revenue growth. While facilitators benefit immediately from AI investments, deployers are expected to realize substantial growth as these technologies mature.