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2 AI Stocks to Buy in June
AMDAMD(AMD) The Motley Fool·2025-06-01 19:05

Group 1: AI Market Overview - Artificial intelligence (AI) is projected to have a 20trillionimpactontheglobaleconomyby2030[1]−ThereisasignificantinfluxofinvestmentintodatacenterstosupportanAI−driveneconomy[3]Group2:CoreWeave−CoreWeaveisaleadingoperatorofpurpose−builtdatacentersforAI,capitalizingonthedemandformoderninfrastructure[3]−Thecompanyreportedarevenueincreasefrom20 trillion impact on the global economy by 2030 [1] - There is a significant influx of investment into data centers to support an AI-driven economy [3] Group 2: CoreWeave - CoreWeave is a leading operator of purpose-built data centers for AI, capitalizing on the demand for modern infrastructure [3] - The company reported a revenue increase from 189 million in Q1 2024 to 982millioninQ12025[4]−CoreWeavehasarevenuebacklogof982 million in Q1 2025 [4] - CoreWeave has a revenue backlog of 25.9 billion, a 63% increase year-over-year, largely due to an 11.9billiondealwithOpenAI[5][6]−Thecompanygeneratesmostofitsrevenuefromlong−termcontracts,whichenhancesvisibilityforfuturerevenue[6]−CoreWeavehassecured420megawattsofpowerforits33AI−optimizeddatacentersandhascontractsforupto1.6gigawattsoverseveralyears[8]−Thestockhasamarketcapof11.9 billion deal with OpenAI [5][6] - The company generates most of its revenue from long-term contracts, which enhances visibility for future revenue [6] - CoreWeave has secured 420 megawatts of power for its 33 AI-optimized data centers and has contracts for up to 1.6 gigawatts over several years [8] - The stock has a market cap of 53 billion, with a forward price-to-sales ratio of 11 based on 2025 revenue outlook [9] Group 3: Advanced Micro Devices (AMD) - AMD is positioned as a competitor in the AI chip market, which is valued at $500 billion, despite Nvidia's dominance [10] - The company has seen a 36% year-over-year revenue increase, driven by strong demand in data centers and Ryzen processors [12] - AMD's adjusted earnings increased by 55% year-over-year, indicating robust growth potential despite mixed results in other segments [12] - The launch of over 30 computing workloads using AMD's fifth-generation EPYC Turin chip across major cloud providers highlights its market presence [13] - AMD's acquisition of ZT Systems aims to enhance its competitive position by offering integrated AI computing systems [14] - The stock is trading at 28 times 2025 earnings estimates, suggesting it may be undervalued given its growth prospects [15]