AI Stocks to Own Through 2035

AI Investment Opportunities

The artificial intelligence revolution continues to gain momentum, presenting ongoing opportunities in AI stocks. AI has the potential to make companies more efficient and bring about groundbreaking innovations, which could boost corporate earnings. Currently, the focus is on building infrastructure, with companies and countries investing heavily in data centers to establish their AI capabilities. Nvidia's CEO, Jensen Huang, anticipates that AI infrastructure spending could exceed $4 trillion by the close of the decade.

CoreWeave

CoreWeave provides AI customers with essential capacity for AI workloads. They have a large collection of over 250,000 GPUs across 32 data centers available for rent, even by the hour. CoreWeave's platform is designed specifically for AI, setting it apart from major cloud service providers, resulting in enhanced speed and efficiency. Customer satisfaction is reflected in CoreWeave's significant revenue growth in recent quarters. In the most recent quarter, revenue tripled, and demand shows no sign of slowing. Furthermore, CoreWeave was the first to offer Nvidia's Blackwell architecture and chip to customers, and with Nvidia owning about 7% of CoreWeave, they will likely continue to get top GPUs to customers quickly. Since its IPO in March, CoreWeave's stock has surged by over 200%, but there's potential for further growth as the demand for AI training and inferencing persists. This makes it a worthwhile stock to hold for the long term.

Broadcom

Broadcom is a networking specialist providing switches and routers for connecting computer nodes in AI tasks. They also offer XPUs, custom AI accelerators popular among big cloud service providers. While Nvidia's GPUs are versatile, Broadcom has found a niche by offering chips optimized for specific tasks. Customers may use both Nvidia and Broadcom chips to power their AI platforms, but in different ways. This approach has boosted Broadcom's AI revenue consistently. In the latest reporting period, AI revenue increased by 63% to $5.2 billion, and the company projects $6.2 billion in AI revenue for the upcoming quarter. With the ongoing AI infrastructure buildout, the demand for chips and networking is expected to increase, making Broadcom a sound AI investment for the future.

Taiwan Semiconductor Manufacturing

While much attention is given to chip manufacturers like Nvidia and Broadcom, Taiwan Semiconductor Manufacturing (TSMC) plays a crucial role in bringing these products to market. Although Nvidia designs its chips, TSMC manufactures them in its factories located in Taiwan and the U.S. TSMC benefits from the successes of Nvidia and the high demand for its innovations. Moreover, TSMC benefits from the demand for chips from other companies, ensuring multiple wins as the AI revolution advances. Increased AI infrastructure spending is expected to fuel growth at TSMC, since chips are essential for powering AI platforms. TSMC has experienced significant revenue growth and anticipates further gains. Currently trading at 28 times forward earnings estimates, TSMC appears to be a solid stock for long-term investment, poised to benefit from the growth in AI infrastructure spending.