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For the next ten years, consider investing in these two Artificial Intelligence (AI) companies, as outlined beyond 2025:

Over the Horizon till 2025: Unveiling 2 Artificial Intelligence (AI) Shares for a Long-term...
Over the Horizon till 2025: Unveiling 2 Artificial Intelligence (AI) Shares for a Long-term Investment Spanning the Next Decade

For the next ten years, consider investing in these two Artificial Intelligence (AI) companies, as outlined beyond 2025:

Investing in artificial intelligence (AI) isn't just about looking ahead to 2025; it's about positioning yourself for the next decade. AI advancements aren't going to halt in 2025, and with the stock market being forward-thinking, a long-term perspective is essential.

Two AI stocks set to rule the next decade are Taiwan Semiconductor Manufacturing (TSM 1.03%) and Amazon (AMZN -0.73%). Both are sound long-term investments and great buys right now.

Taiwan Semiconductor Manufacturing (TSM)

Without Taiwan Semi, AI technology wouldn't be where it is today. TSMC is the world's leading chip manufacturer, acting as a fabrication shop for any tech company needing chips. From Nvidia's GPUs to Apple's iPhones, TSMC provides chips in nearly every cutting-edge electronic device, with no signs of change in the coming decade.

TSMC is also pioneering innovation. It can produce 3-nanometer (nm) chips and is working on 2nm chips, set to launch later this year. This continuous innovation has kept TSMC on top, and there's no reason to believe that won't continue.

AI demand has fueled TSM's growth. Management anticipates AI revenue tripling year over year in 2024 and shows no signs of slowing down. Wall Street analysts expect revenue and earnings-per-share (EPS) growth of 26% and 27%, respectively, in 2025. At 23 times forward earnings, TSM is a budget-friendly investment with excellent future potential.

Amazon (AMZN)

Amazon might seem an odd choice for an AI investment, but its cloud computing division, Amazon Web Services (AWS), is crucial to computing infrastructure. Cloud platforms like AWS provide clients the computing power required for AI model training and operation, without the client having to manage maintenance or hardware obsolescence.

AWS leads the cloud computing market with a massive 17% of Amazon's total revenue. Despite this, cloud computing and commerce have different margin profiles, making AWS a vital contributor to Amazon's profitability. With cloud computing expected to grow by 20% annually over the next decade, Amazon is a rock-solid stock pick for 2025.

Integrating insights from the enrichment data, TSM's strong market position, technological edge, and geopolitical challenges contribute to its potential as a long-term AI investment. Meanwhile, Amazon's influential role in cloud computing and its AI integration across various services cements its strength in the industry, ensuring growth potential.

  1. With the anticipated tripling of AI revenue for Taiwan Semiconductor Manufacturing (TSM) by 2024 and projected growth in revenue and earnings-per-share in 2025, investing in TSM's budget-friendly stocks could yield significant returns in the future.
  2. The forward-thinking stock market sees potential in companies like NVDA and TSM that are heavily involved in artificial intelligence and finance, making these stocks valuable investments anytime.
  3. Amazon Web Services (AWS), a crucial component of Amazon's business, provides clients with the computing power required for AI model training and operation, making it an essential player in the AI finance landscape.
  4. As the field of artificial intelligence continues to evolve and advance, with Taiwan Semiconductor Manufacturing at the forefront and Amazon leveraging its cloud computing resources, the smart investor would do well to consider these companies as part of their future investment strategy.

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