The AI industry continues to experience significant growth, with several companies making notable strides in the field. Nvidia, Taiwan Semiconductor, and Alphabet are top picks for investors looking to buy AI stocks, with Nvidia's graphics processing units being used to train many AI models and Taiwan Semiconductor expecting a 45% compound annual growth rate in AI-related chip growth. Cisco Systems has seen a significant increase in AI-related product sales, with over $600 million in sales in the third fiscal quarter, while Lenovo's shares fell after the company reported a worse-than-expected 64% drop in earnings. Nvidia has also invested in CoreWeave, a company that operates data centers for AI applications, and Celestica is being considered an undervalued AI play with strong revenue and EBITDA growth. Alphabet's AI efforts are paying off, with the company's search business remaining strong and its cloud computing business seeing impressive growth. However, Google is facing a new antitrust challenge as the Justice Department investigates whether the company's investment in artificial intelligence is warding off competition.
Key Takeaways
- Nvidia, Taiwan Semiconductor, and Alphabet are top picks for investors looking to buy AI stocks.
- Cisco Systems has seen a significant increase in AI-related product sales, with over $600 million in sales in the third fiscal quarter.
- Lenovo's shares fell after the company reported a worse-than-expected 64% drop in earnings.
- Nvidia has invested in CoreWeave, a company that operates data centers for AI applications.
- Celestica is being considered an undervalued AI play with strong revenue and EBITDA growth.
- Alphabet's AI efforts are paying off, with the company's search business remaining strong and its cloud computing business seeing impressive growth.
- Google is facing a new antitrust challenge as the Justice Department investigates whether the company's investment in artificial intelligence is warding off competition.
- Taiwan Semiconductor expects a 45% compound annual growth rate in AI-related chip growth.
- AI Assets has increased its proposed share offering ahead of its $18 million US IPO.
- The Trade Desk is a programmatic advertising company that has seen healthy demand for its AI-powered ad platform.
Top AI Stocks to Buy Now
Investors are looking for AI stocks to buy, and three top picks are Nvidia, Taiwan Semiconductor, and Alphabet. Nvidia's graphics processing units have been used to train many AI models, and the company's stock is still a solid buy. Taiwan Semiconductor is a critical supplier of chips and has a strong growth outlook, with expected AI-related chip growth at a 45% compound annual growth rate. Alphabet's stock is cheap, and the company is juggling traditional Google search versus AI search well through its AI overviews feature.
Top AI Stocks to Buy Now
Investors are looking for AI stocks to buy, and three top picks are Nvidia, Taiwan Semiconductor, and Alphabet. Nvidia's graphics processing units have been used to train many AI models, and the company's stock is still a solid buy. Taiwan Semiconductor is a critical supplier of chips and has a strong growth outlook, with expected AI-related chip growth at a 45% compound annual growth rate. Alphabet's stock is cheap, and the company is juggling traditional Google search versus AI search well through its AI overviews feature.
Cisco's AI Networking Business Takes Off
Cisco Systems has seen a significant increase in AI-related product sales, with over $600 million in sales in the third fiscal quarter. The company's Silicon One G200 switch ASICs are being used by hyperscalers and cloud builders to build Ethernet-based back-end networks for their AI clusters. Cisco's CEO, Chuck Robbins, stated that the G200 chip is at the heart of these systems orders, and the company is looking forward to more growth in the future.
Lenovo's Shares Fall After Poor Earnings Report
Lenovo Group Ltd.'s shares fell after the company reported a worse-than-expected 64% drop in earnings. The company's net income was $90 million, reflecting a loss on derivatives and pricing pressures in a stagnant PC market. Despite a 23% rise in sales, Lenovo's stock slid as much as 5.4% in Hong Kong. The company is grappling with uncertainty about demand for PCs and AI servers, and the global economy.
Nvidia Invests in AI Stock CoreWeave
Nvidia, the AI chip king, has invested in CoreWeave, a company that operates data centers for AI applications. CoreWeave's stock has more than doubled since its IPO, and the company has raised its revenue guidance for the year. Nvidia's investment in CoreWeave is a strategic move to support the growth of AI applications, and the company's CEO, Mike Intrator, described the relationship between the two companies as 'symbiotic'.
Celestica: An Undervalued AI Play
Celestica is a lesser-known AI hardware and supply chain play that offers exposure to AI trends without high risk or overvaluation. The company has strong revenue and EBITDA growth, outpacing industry averages and peers. Celestica's valuation is attractive, with lower EV/EBITDA and P/S ratios than most AI peers, making it a good buy as an underrated, less risky AI opportunity.
AI Assets Increases Proposed Share Offering
AI Assets, a Singapore-based company, has increased its proposed share offering ahead of its $18 million US IPO. The company provides an AI-enabled investment assistant app and has generated limited revenues to date. AI Assets plans to list on the Nasdaq under the symbol AIAS, and Univest Securities is the sole bookrunner on the deal.
2 AI Stocks to Buy Before They Soar
The Nasdaq has bounced back, and two AI stocks to buy are Taiwan Semiconductor Manufacturing and The Trade Desk. Taiwan Semiconductor is the world's largest semiconductor foundry and manufactures chips for leading fabless chipmakers. The company has a wide moat and is expected to make the most of the growing demand for AI chips. The Trade Desk is a programmatic advertising company that has seen healthy demand for its AI-powered ad platform.
Alphabet's AI Efforts Pay Off
Alphabet's AI efforts are paying off, with the company's search business remaining strong despite the rise of AI apps. Alphabet has invested heavily in AI, spending $52.5 billion in capital expenditures last year, and plans to increase this investment to $75 billion in 2025. The company's AI-powered search results have led to increased usage growth, and its cloud computing business, Google Cloud, has seen impressive growth.
Google Faces New Antitrust Challenge
Google is facing a new antitrust challenge as the Justice Department investigates whether the company's investment in artificial intelligence is warding off competition. The investigation is part of a broader effort to keep developed companies from stifling competition in the fast-growing AI area.
Sources
- 3 No-Brainer Artificial Intelligence (AI) Stocks to Buy Right Now
- 3 No-Brainer Artificial Intelligence (AI) Stocks to Buy Right Now
- Silicon One G200 Finally Drives Cisco’s AI Networking Business
- Lenovo’s Shares Sink After PC, AI Hardware Rivals Squeeze Profit
- Artificial Intelligence (AI) Chip King Nvidia Recently Piled Into a Stock That Already Doubled Since Its IPO Earlier This Year
- Celestica - Finally An AI Play That Is Not Trading At Too Elevated Valuations (NYSE:CLS)
- Singapore tech firm AI Assets increases proposed share offering ahead of $18 million US IPO
- The Nasdaq Bounces Back: 2 Artificial Intelligence (AI) Stocks to Buy Before They Soar
- Google Must Win at Artificial Intelligence or Its Search Business Could Crumble. Does This Make Alphabet an AI Stock to Buy?
- New Google antitrust challenge aims at AI deal: report (GOOG:NASDAQ)