- Nvidia is a leader in AI infrastructure with over 90% market share in GPUs and data center revenue that has grown over 9x in the past two years. The company’s CUDA software platform has a wide moat, and its auto segment is also seeing strong growth.
- Taiwan Semiconductor Manufacturing (TSMC) is the world’s leading semiconductor contract manufacturer, with a wide lead in advanced node manufacturing. Revenue from chips built on 7nm and smaller nodes made up 73% of revenue last quarter, with Apple already securing supply for its 2nm line.
- ASML provides the equipment for manufacturing advanced chips and has a near-monopoly on extreme ultraviolet lithography. With chipmakers like TSMC and Intel investing heavily in new capacity, ASML is well-positioned for continued growth in the demand for advanced chips.
- Meta Platforms, formerly Facebook, is investing heavily in AI to improve its digital ad platform. New AI tools are driving revenue growth through improved personalization and engagement. Meta’s AI infrastructure investments and expansion into WhatsApp and Threads for ad growth make it well-positioned for the AI world.
- Alphabet, Google’s parent company, has a strong moat with leading distribution through Chrome and Android. Integrating AI into products like search and Google Cloud is driving growth. Waymo’s robotaxi rides and Willow quantum chip show potential for future growth. Alphabet is a top AI stock for the long term.
Read more at Nasdaq: 5 Artificial Intelligence (AI) Stocks You Can Buy and Hold for the Next Decade