AI Market Growth - The market for AI hardware and software is projected to grow between 40% and 55% annually through 2027 according to analysts at Bain [1] Alphabet (Google) - Alphabet has integrated AI into its core products, enhancing user engagement and satisfaction by providing AI-generated answers in Google search [3][13] - Google Cloud's revenue has significantly increased, generating 270 million a year ago [4] - The stock is considered a great value, trading at 22 times 2025 earnings expectations despite anticipated double-digit earnings growth [5] Qualcomm - Qualcomm is known for its wireless patents and is expanding into AI with new Snapdragon processors designed for on-device AI processing [6][7] - The automotive chip segment is growing, with 2.9 billion in revenue during fiscal 2024 [8] - Shares are trading at less than $160, with analysts expecting around 10% earnings growth over the next two years, making it an appealing investment [18] Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC is the largest chip manufacturer globally, commanding over 60% of semiconductor foundry spending and benefiting from soaring demand for AI chips [9][10] - Revenue increased by 39% in the third quarter, with earnings soaring 54%, driven by AI-related chip demand [10] - Shares trade for about 23 times forward earnings, with a consensus estimate for 2025 earnings growth at 27%, indicating strong growth potential [11]
3 No-Brainer Artificial Intelligence (AI) Stocks to Buy for 2025 With $200 Right Now