AI Stocks to Consider in June

AI Stocks to Watch in June

Artificial intelligence (AI) continues to reshape industries, driving unprecedented growth in data center infrastructure and cloud computing services. As the AI boom accelerates, investors are eyeing stocks like CoreWeave and Advanced Micro Devices (AMD), which are positioned to capitalize on this demand. This article explores the potential of these AI stocks in June and the factors contributing to their growth.

CoreWeave: Powering the AI Data Center Revolution

CoreWeave, a leading provider of specialized AI data centers, has emerged as a key player in the rapidly expanding AI market. The company's recent earnings report highlighted a surge in demand for its cloud computing services, with revenue jumping from \$189 million in Q1 2024 to \$982 million in Q1 2025. This growth is fueled by a \$25.9 billion revenue backlog, including an \$11.9 billion deal with OpenAI, indicating strong long-term commitments.

CoreWeave's success is underpinned by its ability to meet the growing demand for AI-optimized data centers. The company currently operates 33 data centers in the U.S. and Europe, supported by 420 megawatts of power, with contracts for up to 1.6 gigawatts more over the next several years. However, securing sufficient power to meet this demand remains a challenge, as data centers require substantial electricity.

With a market cap of \$53 billion and a forward price-to-sales ratio of 11, CoreWeave's valuation appears reasonable for a fast-growing infrastructure-as-a-service provider. The company's focus on multiyear contracts provides high revenue visibility, making it an attractive option for investors seeking stability and growth potential.

Advanced Micro Devices (AMD): A Rising Star in AI Chips

Advanced Micro Devices (AMD) is gaining traction as a major supplier of AI chips for data centers. While Nvidia dominates the market, AMD's chips are increasingly in demand, particularly in the data center and client segments. In the first quarter, AMD's revenue increased 36% year-over-year, driven by strong sales of its Ryzen processors and fifth-generation EPYC Turin chips.

AMD's data center chips boast high margins, contributing to a 55% year-over-year increase in adjusted earnings. The company's acquisition of ZT Systems positions it to offer full-stack AI computing systems, combining chips, networking, and software. This strategic move aligns with Nvidia's approach and could enhance AMD's competitiveness in the AI market.

Despite underperformance in its gaming and embedded segments, AMD's management expects a recovery in the second half of the year. The stock is currently trading at 28 times 2025 earnings estimates, suggesting it may be undervalued given its growth prospects and expanding market share in AI chips.

Conclusion: Investment Opportunities in AI Stocks

The AI boom is creating significant opportunities for companies like CoreWeave and AMD, which are at the forefront of data center infrastructure and AI chip development. As demand for cloud computing services and AI-optimized hardware continues to rise, these stocks could offer strong growth potential for investors in June and beyond.