3 AI Stocks to Consider Besides Nvidia: Smart Investment Choices

Published Date: 14/07/2024

Looking beyond Nvidia, these three AI stocks offer promising growth potential and are worth considering for your portfolio.

"The artificial intelligence (AI) sector has been experiencing rapid growth, and Nvidia has been at the forefront of this trend. However, with high expectations built into its stock, investors may want to consider other options that offer more steady growth potential. Taiwan Semiconductor Manufacturing, Alphabet, and Salesforce are three AI stocks that are worth considering.

Taiwan Semiconductor Manufacturing (NYSE  TSM) is a key player in the AI sector, producing the chips that power many AI devices. With clients such as OpenAI and Apple, the company is well-positioned to benefit from the growing demand for AI technology. Management projects AI-related revenue to grow at a 50% compound annual rate for the next five years, making up more than 20% of overall sales.

Alphabet (NASDAQ  GOOG) (NASDAQ  GOOGL) is the parent company of Google, which has long been a proponent of AI. The company has integrated AI into various advertising products, allowing advertisers to create effective campaigns and ensuring that its internal models match the proper ad with viewers. With a steady growth rate and a dividend, Alphabet is a solid choice for investors.

Salesforce (NYSE  CRM) is a customer relationship management software company that is heavily pushing its AI model to its customers. The company's AI offering can be integrated internally to equip employees with the best information possible when completing a sale, and can also create AI chatbots that provide better customer service interaction. With a market position and a recent dividend initiation, Salesforce is a promising choice for investors.

All three companies offer more steady growth potential than Nvidia, making them attractive options for investors looking to tap into the AI sector.

  Information 

Taiwan Semiconductor Manufacturing is a Taiwanese company that is one of the largest independent semiconductor foundries in the world.

Alphabet is a multinational conglomerate that specializes in Internet-related services and products, including search, cloud computing, and advertising technologies.

Salesforce is a cloud-based software company that provides customer relationship management solutions to businesses of all sizes.

The Motley Fool is a financial services company that provides stock advice and recommendations to investors. The company has a disclosure policy and provides guidance on building a portfolio and regular updates from analysts."

FAQs:

"Q: What is the expected growth rate of Taiwan Semiconductor Manufacturing's AI-related revenue?

A: 50% compound annual rate for the next five years

Q: How does Alphabet integrate AI into its advertising products?

A: By allowing advertisers to create effective campaigns and ensuring that its internal models match the proper ad with viewers

Q: What is the benefit of Salesforce's AI offering to its customers?

A: It can equip employees with the best information possible when completing a sale, and create AI chatbots that provide better customer service interaction

Q: Why are these three companies considered more steady than Nvidia?

A: They offer more predictable growth potential and are less cyclical than Nvidia

Q: What is the benefit of investing in AI stocks?

A: AI is a rapidly growing sector with high demand, making it a promising area for investment"

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