2 Top Artificial Intelligence Stocks to Buy in June

Group 1: AI Investment Theme - Artificial intelligence (AI) investing remains a significant theme in the market, with companies like Nvidia and Taiwan Semiconductor positioned as key beneficiaries of AI spending [1] - Despite the success of some AI hyperscalers in rolling out AI models, they are not yet generating substantial profits, making it more favorable for investors to focus on companies that provide essential components [1] Group 2: Nvidia - Nvidia is likened to the "picks and shovels" of the AI gold rush, as it manufactures graphics processing units (GPUs) that excel in high-computing tasks, crucial for AI model training [3][4] - Nvidia holds a dominant position in the data center market, with an estimated market share of 90% or greater in the data center GPU space, contributing to significant revenue growth [5] - The company reported a 69% revenue growth in Q1 and projects a 50% growth in Q2, indicating strong demand and potential for further upside [7] Group 3: Taiwan Semiconductor - Taiwan Semiconductor manufactures the chips used in Nvidia's GPUs and serves various clients in the AI sector, as well as consumer electronics companies like Apple [8] - The company is expanding its manufacturing presence beyond Taiwan to the U.S., Japan, and Germany, mitigating risks associated with geopolitical tensions [9] - Taiwan Semiconductor's management projects a 45% compounded annual growth rate (CAGR) for AI-related revenue over the next five years, with total revenue expected to grow at nearly a 20% CAGR [10] - The stock trades at a valuation of 22.8 times forward earnings, comparable to the S&P 500's 22.9 times, making it an attractive investment opportunity with solid growth prospects [12]