AI Technology Stocks Worthy of Every Investor's Portfolio
The AI revolution is upon us, and it's reshaping the global economy. A strategic approach to investing in the sector is to own the infrastructure, avoiding the need to predict the success of individual AI start-ups. This approach is gaining traction among smart investors, who are positioning themselves to profit from the companies that make the entire AI ecosystem possible.
NVIDIA, Palantir, Alphabet (Google's parent company), Supermicro, and Microsoft are five companies perfectly positioned for long-term AI-driven growth. These companies are not speculative picks; they are carefully built machines, each with a strong foundation and a crucial role in advancing AI technologies.
Nvidia, for instance, is transforming into a full-stack AI computing company. It's focusing on building the computing platform for the next generation of humanoid robots, agentic AI systems, and autonomous vehicles.
ASML, a Dutch company, essentially holds the keys to the entire AI hardware kingdom. It's the only manufacturer of extreme ultraviolet lithography machines capable of etching nanoscale transistors required for next-generation AI chips. With a 10-year technological lead and a multibillion euro backlog, ASML is a formidable player in the AI hardware market.
The robotics market alone could reach $375 billion by 2035, yet Nvidia is still valued like a semiconductor company selling commodity chips. This undervaluation presents an opportunity for investors to buy into Nvidia's future growth potential.
Palantir, Alphabet, Supermicro, and Microsoft also offer attractive investment opportunities. Palantir is a data analytics company with a significant presence in the government sector, while Alphabet is a tech behemoth with a broad portfolio of AI-related projects. Supermicro is a server manufacturer, providing the hardware backbone for many AI projects, and Microsoft is a dominant player in the cloud computing sector, offering a platform for AI development and deployment.
The AI-powered metaverse could become a multitrillion-dollar opportunity by 2035, according to some analysts. Companies like Meta Platforms (formerly Facebook) are already investing heavily in this space. Meta Platforms aims to merge artificial intelligence with its metaverse ambitions, enabling AI agents to build virtual worlds, create photorealistic avatars, and enable real-time translation across 100 languages in virtual meetings.
Amazon is also making significant investments in AI, deploying 750,000 robots across its fulfillment centers and developing AI-powered robots for human-robot collaboration. If these investments pay off as expected, Amazon's operating margins could expand toward Apple-like levels above 31%.
S&P Global isn't building AI, but its vast troves of financial data are becoming the training ground for Wall Street's AI revolution. Its new Microsoft Copilot integration puts 160 years of market intelligence at traders' fingertips.
Investors who own these infrastructure plays, either directly or through technology-focused exchange-traded funds (ETFs) like the Vanguard Information Technology ETF (VGT), are positioned to profit from the companies that make the entire AI ecosystem possible. Owning the companies that make the AI ecosystem possible, such as those providing chips, data, and platforms, can provide diversified exposure to the AI revolution.
Even the race for top AI talent is heating up. Mark Zuckerberg, CEO of Meta Platforms, is reportedly willing to pay $100 million in bonus packages to poach top AI talent from rivals.
The AI revolution is expected to alter the course of humanity for the foreseeable future. Smart investors are recognising this and are making strategic moves to ensure they're part of this transformative journey. The AI gold rush is real, and the smartest investors know that owning the infrastructure beats betting on individual AI start-ups.
- The AI gold rush is real, and the smartest investors know that owning the infrastructure beats betting on individual AI start-ups.
- NVIDIA, Palantir, Alphabet (Google's parent company), Supermicro, and Microsoft are five companies perfectly positioned for long-term AI-driven growth.
- These companies are not speculative picks; they are carefully built machines, each with a strong foundation and a crucial role in advancing AI technologies.
- The AI-powered metaverse could become a multitrillion-dollar opportunity by 2035, and companies like Meta Platforms are already investing heavily in this space.
