AI Investment Trends: Hot Stocks to Watch
As of 2023, artificial intelligence continues to be a dominant theme in investing, with stocks like Palantir (PLTR), SoundHound AI (SOUN), and Nvidia (NVDA) drawing significant attention. Palantir’s valuation stands at 110 times sales, with a recent revenue growth of 39% in Q1, while SoundHound AI boasts a remarkable 151% revenue growth in the same quarter, trading at 34 times sales. Nvidia holds a 90% market share in data center GPUs, with a year-over-year revenue increase of 69% in Q1, projected to grow at a 50% pace in Q2.
Taiwan Semiconductor Manufacturing (TSM) is expected to grow AI-related revenue at a 45% compound annual growth rate (CAGR), while Alphabet (GOOG) trades at 18.5 times forward earnings amidst its competition in the AI space. Amazon (AMZN) benefits from AI in its cloud computing segment, AWS, which accounted for 63% of its operating profits in Q1. Meanwhile, Broadcom (AVGO), Meta Platforms (META), Tesla (TSLA), and Microsoft (MSFT) remain key players in the AI arms race, each positioned to leverage their respective technologies for future growth.
