2 Artificial Intelligence (AI) Stocks to Buy Now That Could Make You a Fortune

Demand for artificial intelligence (AI) solutions is set to skyrocket in the coming years. The global AI market will exceed a staggering $1.8 trillion by 2030, according to Statista.

The businesses that supply the products and services that fuel the AI megatrend are likely to see their profits soar. Here are two top stocks that could help you claim your share of the AI gold rush.

1. AMD: The chip designer

Artificial intelligence would not be possible if not for the high-performance semiconductors that power the cutting-edge technology. Investors have rightly rewarded Nvidia for supplying some of the best AI chips on the market today. But demand is so strong that one company alone can't satisfy it. Advanced Micro Devices (NASDAQ: AMD) is gearing up to be the next major supplier of power AI tools -- and its profit opportunity is enormous.

CEO Lisa Su expects sales of AI accelerators -- specialized computing hardware that speeds up machine learning workloads -- to surge to a staggering $400 billion by 2027. Nvidia accounts for about 95% of the AI chips currently on the market, according to some estimates, but AMD has a solid plan to win market share.

AMD's new MI300 accelerators are designed to power AI applications in data centers. They integrate central processing units (CPUs), graphics processing units (GPUs), and ultra-fast memory to boost performance and energy efficiency while running AI workloads.

Microsoft and Meta Platforms are already lining up to deploy to AMD's AI offerings in their cloud data centers. Large chip buyers are eager to promote competition in the AI chip market, in hopes that it will alleviate supply shortages. And they see AMD as a worthy challenger to Nvidia.

Additionally, AMD intends to lead the shift to AI-powered personal computers (PCs). Its new Ryzen 8040 Series processors make it easier and faster to run AI models on laptops. Leading PC makers like Dell and HP are planning to feature AMD's chips in their new AI PCs in early 2024. Here, too, AMD's profit opportunity is potentially huge. Tech research firm Canalys estimates that by 2027, 60% of all PCs sold will feature advanced AI capabilities.

2. TSMC: The manufacturing titan

With demand for semiconductors booming, there is an urgent need for the factories, equipment, and specialized workforces that build these products. In this increasingly vital industry, Taiwan Semiconductor Manufacturing (NYSE: TSM) reigns supreme.

TSMC fabricates a broad range of chips for companies, including Apple, Nvidia, and AMD. It accounts for over half of the semiconductor foundry market, according to Statista. TSMC provides an even larger share of the most innovative chip designs. Approximately 85% of start-up product prototypes are produced, at least in part, in its factories.

All told, TSMC helped build 11,895 different products with 288 diverse technologies for 528 customers in 2023. These figures highlight the chipmaker's significance to the global economy. This worldwide relevance has served the company's shareholders well. TSMC has grown its sales and profits by roughly 17% annually for 30 years.

CFO Wendell Huang expects TSMC's revenue to increase by 15% to 20% annually in the coming years. Governments, eager to ensure a steady supply of chips to their economies, are offering generous tax incentives to entice TSMC to build factories within their borders. The semiconductor leader is working to bring new facilities online in Germany, Japan, and the U.S. to expand and strengthen its global production network.

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