Top 2 Artificial Intelligence Stocks to Buy Now

Artificial intelligence (AI) is poised to revolutionize industries and create immense economic value, with projections indicating a market size of over $15 trillion by 2030. Two companies, Taiwan Semiconductor Manufacturing (TSMC) and Microsoft, are already capitalizing on this trend and are well-positioned for sustained growth.

Taiwan Semiconductor Manufacturing: Leading the AI Chip Race

Taiwan Semiconductor Manufacturing (TSMC) is the world's leading manufacturer of advanced AI processors. The company is responsible for producing an estimated 90% of the world's artificial intelligence semiconductors, making it a dominant player in the market. TSMC's technological edge is evident in its 5-nanometer (nm) and 3nm chip production, which continues to see strong demand.

In the first quarter of 2025, TSMC's revenue surged 41% to $25.5 billion, and its diluted earnings per share jumped 60% to $2.12 per American depository receipt (ADR). The company's CEO, C.C. Wei, has forecasted that TSMC's AI revenue will double this year compared to last year, a projection he recently reaffirmed.

TSMC's stock has gained 142% over the past three years, yet it still boasts a price-to-earnings (P/E) ratio of just 25, which is below the S&P 500's P/E multiple. This makes TSMC an attractive investment for those looking to capitalize on the AI revolution.

Why TSMC is a Buy

Despite its significant gains, TSMC remains a compelling buy due to its dominance in advanced AI chip manufacturing. As tech giants continue to race for the most advanced processors, TSMC is well-positioned to benefit from the ongoing demand for high-performance AI chips.

Microsoft: Leveraging AI in Cloud Services

Microsoft is another leader in the AI space, making strategic investments in AI technologies to stay ahead of competitors. One of its most significant moves has been its investment in ChatGPT creator OpenAI. This early investment has given Microsoft access to cutting-edge AI capabilities, which it has integrated into its cloud services.

Microsoft is investing $80 billion this year to maintain its leadership in AI. The company's AI cloud services are already generating substantial revenue, and its continued investment in AI research and development positions it to remain at the forefront of the industry.

Why Microsoft is a Buy

Microsoft's strategic investments in AI, coupled with its strong presence in the cloud computing market, make it a solid choice for investors. The company's diversified portfolio and robust financials further enhance its appeal as a long-term investment.

AI's Impact on the Economy

The mass adoption of AI is transforming the way people work, and companies across various sectors are integrating AI into their daily workflows. New industries are emerging as a result, and the economic impact is significant. According to PwC research, the AI market could exceed $15 trillion by 2030.

Conclusion

Taiwan Semiconductor Manufacturing and Microsoft are two well-established companies that are already benefiting from the AI trend. Their strong market positions, technological leadership, and strategic investments make them compelling stocks to consider for your portfolio. As the AI market continues to grow, these companies are well-positioned to deliver substantial returns for investors.