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2 No-Brainer Artificial Intelligence Stocks to Buy Right Now

2 No-Brainer Artificial Intelligence Stocks to Buy Right Now

Globe and Mail4 hours ago

No matter where you are on the artificial intelligence (AI) debate -- for or against -- there's no denying that it's transforming the way people work. Companies of all shapes and sizes are integrating into their daily workflows, and new industries are popping up because of it.
The mass adoption of AI could result in a market size of more than $15 trillion by 2030, according to PwC research.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Fortunately, there are tons of AI companies out there that actually have a foothold in the market and aren't just flash-in-the-pan opportunities. Here are two well-established companies that are already benefiting from this trend and could be great AI stocks for years to come.
1. Taiwan Semiconductor
Taiwan Semiconductor Manufacturing (NYSE: TSM) does exactly what its name describes -- it manufactures processors for companies. The world's leading chip designers, including Nvidia, rely on Taiwan Semiconductor (often referred to as TSMC) to make their processors because the company is so good at it.
TSMC manufactures an estimated 90% of the world's artificial intelligence semiconductors, making it the clear leader in this market. This dominance led to TSMC's revenue rising 41% in the first quarter of 2025 to $25.5 billion and diluted earnings per share jumping 60% to $2.12 per American depository receipt (ADR).
TSMC relies on its technological lead in semiconductor manufacturing to stay ahead of its competitors, and so far, it's still leading the pack. The company is focused on its 5-nanometer (nm) and 3nm chip production and management said recently that there continues to be "strong demand" for both.
The company's CEO, C.C. Wei, said early this year he expects TSMC's artificial intelligence revenue to double this year compared to last year and recently reiterated that forecast.
Taiwan Semiconductor stock has already gained 142% over the past three years, so what makes the stock a buy right now? Demand for semiconductors hasn't slowed down yet, and no one knows when or if it will. Companies are locked in an AI race right now, and a big part of that involves getting their hands on the most advanced AI chips.
With TSMC's dominance in semiconducting manufacturing and it already holding a lead in advanced AI processors, the company is poised to benefit from chip demand as long as tech giants need the best processors available. And despite its share price gains, TSMC stock has a price to earnings ratio of just 25, which is below the P/E multiple of the broader S&P 500.
2. Microsoft
Microsoft (NASDAQ: MSFT) has made itself an important player in artificial intelligence by making strategic investments in ChatGPT creator OpenAI over the past several years. The early move gave Microsoft access to one of the most advanced AI chatbots on the market, and it quickly implemented ChatGPT into everything from its Microsoft 365 suite of productivity tools to its GitHub Copilot coding assistant.
That's helped Microsoft stay relevant in a rapidly shifting tech market and benefit from AI's growth. Part of Microsoft's AI strategy has been to offer more advanced services with its Azure cloud computing platform, which has helped result in a 35% jump in cloud services sales in the fiscal third quarter (which ended March 31).
Microsoft is the second-largest public cloud computing provider with 21% market share, trailing only Amazon, which holds 30%. Microsoft has narrowed this gap over the past few years, and its investments in artificial intelligence infrastructure could make it an even stronger contender. The company will spend $80 billion on cloud infrastructure this fiscal year alone to stay ahead of the competition.
Microsoft's stock is a bit more expensive than Taiwan Semiconductor's, with a P/E multiple of 36. But with Microsoft already off to a strong start in implementing advanced AI into its software and benefiting from AI cloud services, the company is setting itself up to remain a leading tech player for years to come.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!*
Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

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2 No-Brainer Artificial Intelligence Stocks to Buy Right Now
2 No-Brainer Artificial Intelligence Stocks to Buy Right Now

Globe and Mail

time4 hours ago

  • Globe and Mail

2 No-Brainer Artificial Intelligence Stocks to Buy Right Now

No matter where you are on the artificial intelligence (AI) debate -- for or against -- there's no denying that it's transforming the way people work. Companies of all shapes and sizes are integrating into their daily workflows, and new industries are popping up because of it. The mass adoption of AI could result in a market size of more than $15 trillion by 2030, according to PwC research. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Fortunately, there are tons of AI companies out there that actually have a foothold in the market and aren't just flash-in-the-pan opportunities. Here are two well-established companies that are already benefiting from this trend and could be great AI stocks for years to come. 1. Taiwan Semiconductor Taiwan Semiconductor Manufacturing (NYSE: TSM) does exactly what its name describes -- it manufactures processors for companies. The world's leading chip designers, including Nvidia, rely on Taiwan Semiconductor (often referred to as TSMC) to make their processors because the company is so good at it. TSMC manufactures an estimated 90% of the world's artificial intelligence semiconductors, making it the clear leader in this market. This dominance led to TSMC's revenue rising 41% in the first quarter of 2025 to $25.5 billion and diluted earnings per share jumping 60% to $2.12 per American depository receipt (ADR). TSMC relies on its technological lead in semiconductor manufacturing to stay ahead of its competitors, and so far, it's still leading the pack. The company is focused on its 5-nanometer (nm) and 3nm chip production and management said recently that there continues to be "strong demand" for both. The company's CEO, C.C. Wei, said early this year he expects TSMC's artificial intelligence revenue to double this year compared to last year and recently reiterated that forecast. Taiwan Semiconductor stock has already gained 142% over the past three years, so what makes the stock a buy right now? Demand for semiconductors hasn't slowed down yet, and no one knows when or if it will. Companies are locked in an AI race right now, and a big part of that involves getting their hands on the most advanced AI chips. With TSMC's dominance in semiconducting manufacturing and it already holding a lead in advanced AI processors, the company is poised to benefit from chip demand as long as tech giants need the best processors available. And despite its share price gains, TSMC stock has a price to earnings ratio of just 25, which is below the P/E multiple of the broader S&P 500. 2. Microsoft Microsoft (NASDAQ: MSFT) has made itself an important player in artificial intelligence by making strategic investments in ChatGPT creator OpenAI over the past several years. The early move gave Microsoft access to one of the most advanced AI chatbots on the market, and it quickly implemented ChatGPT into everything from its Microsoft 365 suite of productivity tools to its GitHub Copilot coding assistant. That's helped Microsoft stay relevant in a rapidly shifting tech market and benefit from AI's growth. Part of Microsoft's AI strategy has been to offer more advanced services with its Azure cloud computing platform, which has helped result in a 35% jump in cloud services sales in the fiscal third quarter (which ended March 31). Microsoft is the second-largest public cloud computing provider with 21% market share, trailing only Amazon, which holds 30%. Microsoft has narrowed this gap over the past few years, and its investments in artificial intelligence infrastructure could make it an even stronger contender. The company will spend $80 billion on cloud infrastructure this fiscal year alone to stay ahead of the competition. Microsoft's stock is a bit more expensive than Taiwan Semiconductor's, with a P/E multiple of 36. But with Microsoft already off to a strong start in implementing advanced AI into its software and benefiting from AI cloud services, the company is setting itself up to remain a leading tech player for years to come. Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now? Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

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World's first quantum computing super hub boots up in Lethbridge

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