Fri. Feb 23rd, 2024
    Three Affordable Stocks for Investing in AI Technology

    As the year 2023 came to an end, the tech sector of the stock market saw a surge in excitement over artificial intelligence (AI) technology. While some stocks experienced significant growth due to the AI boom, others were left behind for various reasons. Here are three affordable AI plays recommended by The Motley Fool’s top tech experts: Taiwan Semiconductor Manufacturing (NYSE: TSM), Amazon (NASDAQ: AMZN), and Applied Materials (NASDAQ: AMAT).

    Taiwan Semiconductor Manufacturing (TSM) has been through a lot in recent years and has emerged stronger. The global shortage in semiconductor manufacturing capacity ended in late 2023, and TSMC started construction on new manufacturing facilities set to open between 2024 and 2026. The company continues to maintain its chip-making technology lead and is working around political tensions by positioning new facilities away from the Chinese sphere of influence. With a stock trading at attractive valuations, TSMC appears poised for further growth.

    Amazon, despite being down from its all-time highs, is positioned for a comeback in 2024. The e-commerce and cloud computing giant has been right-sizing its operations to boost profitability. In addition, it has been incorporating AI into its advertising features and has been installing Nvidia GPUs in its data centers to keep up with the times. Amazon’s cloud computing business is expected to benefit from the projected rise in global cloud spending in 2024.

    Applied Materials is a diversified semiconductor equipment company that has consistently shown strong financial performance. While its leading-edge and memory equipment sales experienced a downturn, its lagging-edge specialty equipment for auto and industrial chips remained strong. With its expertise in various key technologies, Applied Materials is well-positioned for future growth.

    Investing in AI technology can be an exciting opportunity for investors. These three affordable stocks provide exposure to the AI industry and offer the potential for significant returns. Whether it’s through semiconductor manufacturing, e-commerce, or semiconductor equipment, these companies are well-positioned for the AI-driven future.

    FAQ section:

    1. What are some affordable AI plays recommended by The Motley Fool’s top tech experts?
    – The Motley Fool’s top tech experts recommend Taiwan Semiconductor Manufacturing (NYSE: TSM), Amazon (NASDAQ: AMZN), and Applied Materials (NASDAQ: AMAT) as affordable AI plays.

    2. What is the current status of Taiwan Semiconductor Manufacturing (TSM)?
    – Taiwan Semiconductor Manufacturing (TSM) has emerged stronger in recent years. The global shortage in semiconductor manufacturing capacity ended in late 2023, and TSMC started construction on new manufacturing facilities. The company continues to maintain its chip-making technology lead and is positioning new facilities away from the Chinese sphere of influence.

    3. What potential does Amazon have for a comeback in 2024?
    – Despite being down from its all-time highs, Amazon is positioned for a comeback in 2024. The company has been right-sizing its operations to boost profitability, incorporating AI into its advertising features, and installing Nvidia GPUs in its data centers. Amazon’s cloud computing business is expected to benefit from the projected rise in global cloud spending in 2024.

    4. What is Applied Materials known for?
    – Applied Materials is a diversified semiconductor equipment company. While its leading-edge and memory equipment sales experienced a downturn, its lagging-edge specialty equipment for auto and industrial chips remained strong. Applied Materials is well-positioned for future growth due to its expertise in various key technologies.

    Key Terms:
    – Artificial Intelligence (AI): The simulation of human intelligence in machines that are programmed to think and learn like humans.
    – Semiconductor: A material that has electrical conductivity between that of a conductor and an insulator. It is the foundation of modern electronics and computer technology.
    – E-commerce: The buying and selling of goods and services over the internet.
    – Cloud Computing: The delivery of computing services, including storage, databases, software, and analytics, over the internet.
    – GPU: Graphics Processing Unit, a specialized electronic circuit designed to rapidly manipulate and alter memory to accelerate the creation of images in a frame buffer for output to a display.

    Suggested Related Links:
    Taiwan Semiconductor Manufacturing
    Amazon
    Applied Materials