AI Stocks to Own Through 2035

AI Stocks: Investment Opportunities in AI Technology

The artificial intelligence (AI) revolution continues to accelerate, presenting significant opportunities in AI stocks. AI has the potential to enhance corporate efficiency and drive groundbreaking innovations, boosting earnings for companies investing in this technology. Currently, the focus is on building AI infrastructure, with substantial investments in data centers by companies and countries to establish their AI capabilities. Nvidia's CEO, Jensen Huang, predicts that AI infrastructure spending could exceed $4 trillion by the end of the decade.

CoreWeave: Leading in AI Workloads

CoreWeave stands out by providing essential capacity for AI workloads. With over 250,000 GPUs across 32 data centers, CoreWeave offers rentable capacity by the hour, tailored specifically for AI tasks. This specialization sets it apart from major cloud service providers, resulting in enhanced speed and efficiency. CoreWeave's significant revenue growth, including a tripling of revenue in the most recent quarter, underscores its success. The company was the first to offer Nvidia's Blackwell architecture and chip to customers, and with Nvidia owning about 7% of CoreWeave, it is poised to continue delivering top GPUs quickly. Since its IPO in March, CoreWeave's stock has surged over 200%, and further growth is expected as demand for AI training and inferencing persists.

Broadcom: Specializing in AI Accelerators

Broadcom, a networking specialist, provides switches and routers essential for connecting computer nodes in AI tasks. The company also offers XPUs, custom AI accelerators popular among major cloud service providers. While Nvidia's GPUs are versatile, Broadcom has carved out a niche by offering chips optimized for specific tasks. This dual approach allows customers to use both Nvidia and Broadcom chips to power their AI platforms differently. Broadcom's AI revenue has grown consistently, with a 63% increase to $5.2 billion in the latest reporting period. The company projects $6.2 billion in AI revenue for the upcoming quarter, positioning Broadcom as a strong AI investment for the future.

Taiwan Semiconductor Manufacturing: Essential for AI Infrastructure

Taiwan Semiconductor Manufacturing (TSMC) plays a critical role in bringing AI products to market. Although companies like Nvidia design their chips, TSMC manufactures them in its factories in Taiwan and the U.S. TSMC benefits from the success of Nvidia and the high demand for its innovations. The company also 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, as chips are essential for powering AI platforms. Currently trading at 28 times forward earnings estimates, TSMC is a solid stock for long-term investment, poised to benefit from the growth in AI infrastructure spending.

The Future of AI Stocks

As AI continues to advance, the demand for AI infrastructure and technology will likely increase. Companies like CoreWeave, Broadcom, and TSMC are well-positioned to capitalize on this growth, making them attractive options for long-term investment. Investors should consider these stocks as part of a diversified portfolio focused on the AI sector.