As more and more companies look towards artificial intelligence (AI) to power their businesses, investors are eager to capitalize on this trend. While Nvidia is currently the top choice for AI-interested investors, there are other, more affordable options out there. Here are two AI stocks that investors may want to consider purchasing.
Twilio is currently trading at a low multiple of just 3 times sales, despite its 34% gain so far this year. Although the company forecasted a near-term slowdown in growth, it still reported a 15% year-over-year increase in revenue for the first quarter of 2023. Its Studio visual application builder platform allows users to build chatbots based on their specific needs, making it an attractive option for companies looking to integrate generative AI into their contact center applications. As the global chatbot market is expected to grow 23% annually through the end of the decade, Twilio is well-positioned to take advantage of this trend.
Taiwan Semiconductor Manufacturing, also known as TSMC, is the world’s largest pure-play semiconductor foundry. It is a key supplier for Nvidia, which sources its 5-nanometer wafers from TSMC to manufacture its data center processors that are in high demand thanks to AI. TSMC’s revenue from sales of its 5nm chips grew 43% over the year-ago period, and as the demand for AI chips continues to rise, the company is poised for solid growth in the coming years. With a market share of close to 60%, TSMC is in a dominant position to ride the growing demand for semiconductors needed to power AI applications.
While Nvidia is currently expensive to buy, these two stocks offer investors more affordable options and significant potential for growth in the AI market.
