Artificial intelligence has been a prominent trend in technology, and it now stands to become the epicenter of change in the economy of multiple industries. A few stocks to invest in today may become winners in the next 10 years, and a few have remained the pillars of what AI will entail in the future.
Nvidia is dominating the global business of providing the core chips that train and power a majority of AI models. Now, the company enjoys about 90% of the AI GPU market, and its data-center sales have grown at an unprecedented pace for a company of its size. The extensive sales of Nvidia GPUs and their extension into other sectors, including automotive AI, indicate that there is much left to be exploited as the field of AI usage grows and branches out.
The chips are manufactured by Taiwan Semiconductor Manufacturing Company, or TSMC, the company behind the chip that powers most of the prominent tech names in AI. The inability of virtually all tech giants to make their chips and rely on TSMC speaks clearly about the company’s unique status and pricing power. With industries competing to produce more intelligent devices that are controlled through AI, the role of TSMC will become even bigger.
The other invaluable player in this space is ASML. It constructs the ultra-special machines that enable it to produce the most advanced chips in the world. Its de facto monopoly in extreme ultraviolet lithography equipment makes it a vital (and increasingly necessary) component as chips get ever more complicated. With the demand for advanced chips rising, ASML is, therefore, positioned to enjoy each breakthrough in technology.
Meta Platforms has revolutionized business targeting and connecting with users over the web, and AI has become the core that fuels Meta in boosting ad performance and creative tools. As digital advertising continues to evolve, Meta stands to do well with billions of users on Facebook, Instagram, and WhatsApp, as well as an expanding pipeline of generative AI advertising products.
Alphabet, the parent company of Google, is at an unusual intersection of inventions in AI and international scale. AI is not just a deregulated algorithm working under the hood but a driver of growth and a defensive weapon, from search to cloud computing, and eventually, autonomous vehicles. Alphabet is betting high on it. Its Gemini AI and various intelligent tools make it hold the industry at the top of its merit, which makes it have long-term potential in market value.
Collectively, all five of these companies possess a critical component of the AI value chain or platform ecosystem. They are shaping the digital future, and their innovation, size, and pioneering imply that their narratives are not yet over.
