Investors are adjusting to the notion that interest rates may not decrease as significantly as anticipated in 2024, resulting in a market disturbance. Nevertheless, the history of high performance from the stock market in April and December suggests a potential for a rebound in the remainder of this month.
A likely scenario is that investors will become comfortable with extended higher rates rather than turning away from the vast potential of artificial intelligence. This suggests the downturn in tech share prices represents an opportunity. Microsoft (NASDAQ:MSFT) is an appealing stock, having significantly invested in AI, particularly within the business sector, and currently leading in the expanding cloud market.
Nvidia (NASDAQ:NVDA) stockholders can find confidence in recent announcements by Taiwan Semiconductor Manufacturing (NYSE:TSM). As the largest foundry in the world, its first-quarter profit was driven by demand for AI chips. It predicted AI chips will contribute to 10% of overall revenue this year, and increase to 20% by 2028. This forecast suggests beneficial prospects for Nvidia, being the top chip producer.
The reasoning supporting Nvidia stock also applies to AMD (NASDAQ:AMD). Because demand for AI chips is projected to remain strong throughout 2024, TSMC’s forecast for AI chip revenues to constitute 10% of its business during this period bolsters AMD and other companies in the field.
Amazon (NASDAQ:AMZN) is an attractive stock option for various reasons. Its double-digit growth rate is largely due to its stronghold on the e-commerce market. A planned investment of $150 billion over the next 15 years into AI data centers solidifies Amazon’s likely future success.
Google (NASDAQ:GOOG,GOOGL) has been engaged in developing AI chips for the last ten years and recently bolstered in-house chip development initiatives. The effort to lessen its reliance on major chip manufacturers enhances its appeal.
Broadcom (NASDAQ:AVGO) plays a crucial role in the AI supply chain, poised to take advantage of future opportunities. The company is engaged in developing semiconductor infrastructure software, positioning it for long-term benefits as AI advances. Additionally, Broadcom offers a consistent dividend, increasing its stability as an AI investment.
Micron (NASDAQ:MU) stock has been significantly impacted by the market disturbance but presents a compelling opportunity. As Nvidia’s chosen supplier of high bandwidth memory (HBM), Micron makes for a strong investment considering the persistently high demand for AI chips.
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