April 25, 2025

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Taiwan Semiconductor, Amazon, Microsoft Lead AI Investment Boom

Despite ongoing trade tensions between the US and China, the artificial intelligence (AI) sector remains a promising investment opportunity. Top AI stocks to consider include Taiwan Semiconductor Manufacturing, Amazon, and The Trade Desk, which are expected to grow their earnings by 21%, 20%, and 23% annually over the next three to five years, respectively. Corporate AI spending remains strong, with AI accounting for 15% of enterprise IT budgets, and major cloud players like Amazon, Microsoft, and Google are poised to benefit from the AI revolution. The US has raised nearly half a trillion dollars in private investment in AI, leading the world in AI investment, followed by China, the UK, Canada, and Israel. Recent breakthroughs, such as Microsoft's new '1-bit' AI model, and investments in AI startups, like Canopy's $70 million Series C round, demonstrate the sector's continued growth and innovation. While there are uncertainties around short-term cloud deal closures and tariff rhetoric, the long-term outlook for AI remains strong, with many companies planning to invest in AI projects in 2025.

Key Takeaways

  • Top AI stocks to consider include Taiwan Semiconductor Manufacturing, Amazon, and The Trade Desk, with expected annual earnings growth of 21%, 20%, and 23%, respectively.
  • Corporate AI spending remains strong, with AI accounting for 15% of enterprise IT budgets.
  • Major cloud players like Amazon, Microsoft, and Google are poised to benefit from the AI revolution.
  • The US has raised nearly half a trillion dollars in private investment in AI, leading the world in AI investment.
  • China, the UK, Canada, and Israel are also significant investors in AI, with China investing $119.3 billion.
  • Microsoft's new '1-bit' AI model could change the game for AI inference, making it possible to run powerful AI models on CPUs.
  • Canopy has raised $70 million in a Series C round to accelerate product development and explore growth through strategic acquisitions.
  • The iShares Future AI and Tech ETF provides a way to invest in the AI industry without picking individual stocks.
  • AMD may be a good AI stock to buy, with its valuation having seen a big drawdown and its plans to launch its MI350 AI accelerator in 2025.
  • CoreWeave stock has risen after the company announced an expanded partnership with Galaxy Digital Holdings to add 260 MW of IT capacity.

Top AI Stocks to Buy Now

Despite trade tensions between the US and China, artificial intelligence (AI) stocks are still a good investment. Three top AI stocks to consider are Taiwan Semiconductor Manufacturing, Amazon, and The Trade Desk. These companies have strong growth prospects and trade at compelling prices. Taiwan Semiconductor Manufacturing is a leading semiconductor manufacturer, Amazon's cloud platform AWS will benefit from increased cloud usage, and The Trade Desk has a strong technology platform that utilizes AI and data analytics. Analysts estimate that these companies will grow their earnings by 21%, 20%, and 23% annually over the next three to five years, respectively.

Top AI Stocks to Buy Now

Despite trade tensions between the US and China, artificial intelligence (AI) stocks are still a good investment. Three top AI stocks to consider are Taiwan Semiconductor Manufacturing, Amazon, and The Trade Desk. These companies have strong growth prospects and trade at compelling prices. Taiwan Semiconductor Manufacturing is a leading semiconductor manufacturer, Amazon's cloud platform AWS will benefit from increased cloud usage, and The Trade Desk has a strong technology platform that utilizes AI and data analytics. Analysts estimate that these companies will grow their earnings by 21%, 20%, and 23% annually over the next three to five years, respectively.

Top AI Stocks to Buy Now

Despite trade tensions between the US and China, artificial intelligence (AI) stocks are still a good investment. Three top AI stocks to consider are Taiwan Semiconductor Manufacturing, Amazon, and The Trade Desk. These companies have strong growth prospects and trade at compelling prices. Taiwan Semiconductor Manufacturing is a leading semiconductor manufacturer, Amazon's cloud platform AWS will benefit from increased cloud usage, and The Trade Desk has a strong technology platform that utilizes AI and data analytics. Analysts estimate that these companies will grow their earnings by 21%, 20%, and 23% annually over the next three to five years, respectively.

Top AI Stocks to Buy Now

Despite trade tensions between the US and China, artificial intelligence (AI) stocks are still a good investment. Three top AI stocks to consider are Taiwan Semiconductor Manufacturing, Amazon, and The Trade Desk. These companies have strong growth prospects and trade at compelling prices. Taiwan Semiconductor Manufacturing is a leading semiconductor manufacturer, Amazon's cloud platform AWS will benefit from increased cloud usage, and The Trade Desk has a strong technology platform that utilizes AI and data analytics. Analysts estimate that these companies will grow their earnings by 21%, 20%, and 23% annually over the next three to five years, respectively.

Top AI Stocks to Buy Now

Despite trade tensions between the US and China, artificial intelligence (AI) stocks are still a good investment. Three top AI stocks to consider are Taiwan Semiconductor Manufacturing, Amazon, and The Trade Desk. These companies have strong growth prospects and trade at compelling prices. Taiwan Semiconductor Manufacturing is a leading semiconductor manufacturer, Amazon's cloud platform AWS will benefit from increased cloud usage, and The Trade Desk has a strong technology platform that utilizes AI and data analytics. Analysts estimate that these companies will grow their earnings by 21%, 20%, and 23% annually over the next three to five years, respectively.

AI Spending Remains Strong

Corporate AI spending remains strong despite trade tensions between the US and China. According to a memo from Wedbush Securities, AI accounts for 15% of enterprise IT budgets and is a priority area for CIOs. The firm expects AI spending to continue growing, with many companies planning to invest in AI projects in 2025. However, the pipeline remains shaky, with 25% of big-ticket deals being delayed and closure rates becoming unpredictable.

Amazon, Microsoft, and Google to Benefit from AI

Artificial intelligence spending remains firm despite macro headwinds, setting up major cloud players like Amazon, Microsoft, and Google to benefit in the near term. According to Wedbush analysts, the AI revolution has entered its enterprise-use phase, and spending intentions for 2025 remain strong. However, there is some uncertainty around short-term cloud deal closures, with several projects being delayed into later quarters.

Invest in AI with This ETF

Investing in artificial intelligence can be risky, but the iShares Future AI and Tech ETF provides a way to invest in the industry without picking individual stocks. The ETF holds 50 different AI stocks, including Nvidia, Palantir Technologies, and Microsoft, and provides exposure to a diverse cross-section of the industry. While the ETF has experienced volatility, it may be a good investment for those willing to hold it for the long term.

Is AMD a Good AI Stock to Buy?

Advanced Micro Devices (AMD) stock has been volatile due to trade tensions between the US and China. However, the company's valuation has seen a big drawdown, and it may be a good time to buy. AMD is poised to launch its MI350 AI accelerator in the second half of 2025, and its shares could be a worthwhile addition for risk-tolerant investors with a long-term holding horizon.

Top Countries for AI Investment

The US has raised nearly half a trillion dollars in private investment in AI, higher than the rest of the world combined from 2013 to 2024. China has also made substantial AI investments, totaling $119.3 billion, while the UK, Canada, and Israel have also made significant contributions. The top 10 countries for AI investment are led by the US, followed by China, the UK, Canada, and Israel.

Microsoft's AI Breakthrough

Microsoft has unveiled a new '1-bit' AI model that is small enough to run on a CPU and uses just 0.4 GB of memory. This breakthrough could change the game for AI inference, making it possible to run powerful AI models on CPUs in data centers and on devices without sacrificing quality. This could be great news for Intel and AMD, which sell server and PC CPUs that feature built-in AI accelerators.

CoreWeave Stock Rises

CoreWeave stock has risen after the company announced an expanded partnership with Galaxy Digital Holdings. The partnership will add 260 MW of IT capacity at Galaxy's Helios data center campus to meet growing demand for AI and high-performance computing. CoreWeave has received multiple Buy ratings from top analysts and has a strong growth outlook.

Canopy Raises $70 Million

Canopy, a cloud-based Practice Management solution for accounting firms, has raised $70 million in a Series C round. The funding will accelerate product development aimed at helping medium and large accounting firms become more efficient, profitable, and scalable. Canopy plans to explore growth through strategic acquisitions and will use AI to automate tasks and generate insights for accounting firms.

Wall Street Rises

US stocks have closed higher, with technology shares leading the rally. The 'magnificent seven' group of artificial intelligence-related megacaps, including ServiceNow, have boosted the Nasdaq. Easing tariff rhetoric between the US and China has also contributed to the rally. However, there are still questions around tariffs, and many companies have cut or withdrawn their forecasts due to elevated uncertainty among consumers.

Sources

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