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AI Market Investment Insights
The artificial intelligence (AI) market is projected to add trillions to the global economy, providing investors with opportunities in lower-risk buy-and-hold investments. Notably, companies supplying computing hardware and those benefiting from AI adoption could see satisfactory returns.
Taiwan Semiconductor Manufacturing (TSMC)
Taiwan Semiconductor Manufacturing Company (NYSE: TSM) controls over 65% of the chip foundry market, making it essential for AI technology, smartphones, and computers. TSMC produced $106 billion in revenue and $45 billion in net income over the past year, with a reported 44% revenue growth in Q2 year-over-year. Analysts estimate earnings per share will grow at an annualized rate of 21%, with AI chip revenue projected to grow in the mid-40s range over the next five years.
Apple Inc.
Apple Inc. (NASDAQ: AAPL) has a substantial advantage in AI with over 2.35 billion active devices and strong consumer trust. Despite not making significant strides in AI yet, the company’s earnings are anticipated to grow by 10% annually. Apple is rumored to explore a partnership with Alphabet’s Google to enhance its AI capabilities, which may support its position in the evolving AI market.
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