March 22, 2025

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AI Stocks Poised for Growth Amid Market Downturn

The world of artificial intelligence is rapidly evolving, with numerous companies investing heavily in AI technology. As a result, the market for AI stocks has become increasingly popular, with some companies experiencing significant growth. However, with the recent market downturn, many AI stocks have taken a hit. Despite this, experts believe that the long-term prospects for AI stocks remain strong, with some companies poised to make a significant impact in the industry.

Prediction: These 2 Unstoppable AI Stocks Will Be Worth More Than $1 Trillion

Broadcom and Taiwan Semiconductor Manufacturing are two companies that have fallen below the $1 trillion valuation level but are expected to return to this level by the end of the year. Both companies are heavily involved in the AI race, with Broadcom focusing on custom accelerators and Taiwan Semiconductor manufacturing chips for various companies. Broadcom's AI revenue base was $12.2 billion in 2024, and the company expects to have a serviceable addressable market between $60 billion and $90 billion by 2027. Taiwan Semiconductor's AI-related revenue is expected to have a 45% compound annual growth rate over the next five years.

1 Artificial Intelligence Stock Gen Zers Should Buy Today and Hold for Decades

Amazon is considered a top AI stock due to its world-leading cloud computing platform, Amazon Web Services (AWS). AWS owns about 30% of the cloud computing market, and its growth is expected to drive Amazon's earnings. AI applications will likely boost cloud usage, and analysts believe that AWS revenue will reach $600 billion by 2030. Amazon's retail segment can also benefit from AI, with the potential to displace human workers and lower costs. The company has already begun experimenting with AI and automation in areas such as self-driving vehicles and virtual customer service.

Better Artificial Intelligence Stock: BigBear.ai vs. Palantir

BigBear.ai and Palantir Technologies are two companies that deliver AI solutions to the federal government. While both companies have growth potential, Palantir's financials are stronger, with $2.9 billion in total revenue in 2024 and an expected $3.7 billion in 2025. BigBear.ai, on the other hand, is not profitable and has a weak balance sheet. Palantir's AI platform is popular, and the company's sales growth is due to its ability to help organizations incorporate AI into their operations.

The Do's and Don'ts of Using AI to Manage Your Finances

AI can be a helpful tool in managing personal finances, but it's essential to understand the risks and opportunities. AI can provide basic financial education, help with budgeting, and automate tedious tasks. However, it's crucial to verify the information provided by AI tools and not rely solely on them for investment advice. AI chatbots can be helpful in analyzing spending habits and providing recommendations, but they may not take into account personal values and triggers.

This Nvidia-Backed Artificial Intelligence Unicorn Is About to Go Public

CoreWeave, an AI start-up backed by Nvidia, is going public soon in a deal worth approximately $2.5 billion. While the company has impressive revenue growth, its financial profile raises concerns. CoreWeave's revenue is concentrated in a few customers, and the company has significant debt. The company's operating expenses are growing rapidly, and its interest expense is notable. Despite the hype surrounding the IPO, the company's underlying financial profile could be stronger.

AI Stocks: The Silver Lining in an Otherwise Stormy Tech Market

Despite the recent market downturn, AI stocks remain a promising investment opportunity. Companies such as Nvidia, Palantir Technologies, and SoundHound AI have experienced significant growth, and analysts predict a compound annual growth rate of about 35% for the AI market through 2030. The Trump administration has also announced plans to support AI development, and companies such as Meta Platforms and Alphabet are increasing their spending on AI programs. Now may be a good time to invest in promising long-term players, as many have fallen to bargain levels.

Key Takeaways

  • The AI market is expected to experience significant growth, with a predicted compound annual growth rate of about 35% through 2030.
  • Companies such as Broadcom, Taiwan Semiconductor, and Amazon are well-positioned to benefit from the growth of the AI market.
  • Palantir's financials are stronger than BigBear.ai's, making it a more promising investment opportunity.
  • AI can be a helpful tool in managing personal finances, but it's essential to understand the risks and opportunities.
  • CoreWeave's IPO may not be the best investment opportunity due to the company's financial profile.
  • Now may be a good time to invest in promising long-term AI players, as many have fallen to bargain levels.

Sources

Artificial Intelligence AI Stocks Broadcom Taiwan Semiconductor Manufacturing Amazon Cloud Computing AWS Palantir Technologies BigBear.ai Nvidia CoreWeave AI Market Growth Investment Finances Personal Finance