5 Top Artificial Intelligence Stocks to Buy in September

Core Viewpoint - The opportunity in artificial intelligence (AI) remains massive, with significant potential for investors to gain exposure to this sector as it continues to drive stock market performance [1] Group 1: Nvidia - Nvidia has significantly benefited from the growth of AI infrastructure, with its GPUs being the gold standard for training large language models (LLMs) [3] - The company's Q2 data center networking revenue surged by 98% year-over-year to $7.3 billion, driven by demand for its NVLink, InfiniBand, and Spectrum-X products [3] - Nvidia's GPUs are not only leading in training but also setting the standard for inference, indicating a substantial growth opportunity in a projected multitrillion-dollar AI infrastructure market [4] Group 2: Broadcom - Broadcom has become a key player in custom AI chips, essential for hyperscalers aiming to reduce inference costs and reliance on Nvidia [5] - The company anticipates that its relationships with major clients like Alphabet, Meta Platforms, and ByteDance could be worth between $60 billion and $90 billion by fiscal 2027 [6] - A significant $10 billion order from a new customer, likely OpenAI, highlights Broadcom's accelerating custom AI chip design capabilities [7] Group 3: Advanced Micro Devices (AMD) - AMD is positioning itself in the AI chip market, with seven of the ten largest AI operators utilizing its GPUs [9] - The formation of the UALink Consortium aims to create an open-source interconnect standard, potentially reducing Nvidia's market grip and benefiting AMD [10] - AMD's CPUs are gaining traction in data centers, and even modest market share gains in the GPU segment could significantly enhance its revenue [11] Group 4: Alphabet - Alphabet has maintained a competitive edge in search with its Chrome browser, which was not mandated for sale in an antitrust case [12] - The company is integrating AI into its search capabilities, with AI Overviews being used by over 2 billion people monthly and its Gemini models being among the best in the industry [13] - Google Cloud is a strong growth driver as businesses increasingly adopt cloud computing for AI model development, complemented by Alphabet's custom chips providing a cost advantage [14] Group 5: Meta Platforms - Meta Platforms has transformed itself through AI, enhancing user experiences and improving ad targeting, resulting in a 22% year-over-year increase in ad revenue [15] - The company is exploring ambitious AI projects, including the development of "personal superintelligence" [16] - With substantial operating cash flow, Meta is well-positioned to pursue significant AI opportunities while benefiting from AI-driven improvements in its core business [17]