The investment of artificial intelligence (AI) remains at the forefront of the market while businesses continue to invest billions of dollars in this emerging technology. We have barely scraped the surface of what an economy in the foreground is like, and to achieve this, we must strengthen much more computer capacity.
It is a bullish sign for many companies in this space, and I think four companies are particularly intelligent investments to make at the moment. So, if you have a deployment of $ 1,000 (or any other dollar amount), starting with these four is a great idea.
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AI equipment: manufacture of nvidia and taiwan semiconductors
On the material side of things, Nvidia (NVDA -0.42%)) Was king of the AI world since the start of the AI breed. Its graphic processing units (GPU) are widely deployed in AI applications and have been established as the essential option, with a market share of 90%.
Nvidia has several bassing factors, including the reapplication of the company for an export license to resume the shipment of the GPUs to China, while being provided by the American government that this license will be approved. This will help to reagade Nvidia’s growth rate because it projects income in the second quarter to increase by 50% from one year to the next; However, it would have been planned to increase 77% if Nvidia was authorized to sell in China in the second quarter.
It is a massive boost and would allow Nvidia to maintain its breathtaking growth rate in the future. It is a bullish sign for Nvidia’s stock, stressing that Nvidia is not going into the world of AI.
Operational income NVDA (quarterly growth in annual sliding) data by Ycharts
Manufacture of Taiwan semiconductors (TSM -2.12%)) is a key supplier from Nvidia, because the company cannot produce chips for its internal GPUs. Instead, he buys them from TSMC, the main flea foundry. The Taiwan semiconductor has reached the summit by offering advanced technology alongside the best chip yields, which reduces rebuilding costs, resulting in the increase in profits for the TSMC and better prices for its customers.
TSMC expects the massive AI growth to continue for a while. At the beginning of 2025, the management provided that revenues linked to AI would increase at an annual growth rate made up of 45% (TCAC) five. Flee orders have often placed years in advance, so when management tells investors that a significant growth is coming, they should take note.
NVIDIA and TSMC are ready for significant growth in the coming years, which makes great actions to buy now and to keep in the long term.
Cloud Computing: Amazon and Alphabet
Another industry that benefits from the deployment of AI is Cloud Computing. Many companies cannot afford to build an expensive data center that may not be used at its full capacity, so it is more logical to rent this computing power of a supplier such as Amazon (Amzn 0.97%)) via Amazon Web Services (AWS) or Alphabet‘s (Goog 0.66%)) (Googl 0.78%)) Google Cloud.
Large View’s search has revealed that the world’s size of the Cloud Computing was around $ 750 billion in 2024, but this should extend to 2.4 billions of dollars by 2030. This growth is fueled by AI and non-a migrant workloads, and businesses like Amazon and Alphabet are well positioned to benefit from this trend.
Everyone is also an essential element of the image of the profits of their parent company. In the first quarter, AWS represented 63% of Amazon’s operating profits, despite only 19% of total income. AWS is Amazon’s profit engine, and with its growth on the market, it should continue to drive higher Amazon actions.
Google Cloud is still working on the impressive operational margin of 39% of AWS because it posted a margin of 18% in the first quarter. However, it increases faster than AWS (growth of 28% against 17% growth) and could become a substantial part of the film on the benefit of alphabet in the years to come. Cloud Computing suppliers, such as Amazon and Alphabet, also benefit from the rise of AI. With the global Cloud Computing market which should develop rapidly in the coming years, these actions now make smart shopping.
Suzanne Frey, director of Alphabet, is a member of the board of directors of Motley Fool’s. John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of Motley Fool’s. Keithen Drury has positions in the alphabet, Amazon, Nvidia and the manufacture of Taiwan semiconductors. The Motley Fool has positions and recommends the alphabet, Amazon, Nvidia and the manufacture of Taiwan semiconductors. The Motley Fool has a policy of disclosure.
