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Artificial Intelligence Stocks Driving Nasdaq's Surge in 2023

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By Edith Muthoni

Updated Mar 18, 2024

The surge in artificial intelligence (AI) is driving the Nasdaq Composite to reach new heights in 2023. And technology stocks are set to benefit from the growth potential of this booming industry. Wall Street’s increasing focus on AI-driven technologies reflects the fierce competition among companies. These firms aim to seize a portion of the highly profitable market.

The AI market is on track to approach $200 billion in 2023. The sector is expected to experience growth at a compound annual rate of 37% until 2030, potentially reaching close to $2 trillion.

Advanced Micro Devices (AMD) and Intel

Advanced Micro Devices (AMD) and Intel are leading the charge in fueling AI growth. They are well-positioned to take advantage of AI’s expansion in various sectors. This includes consumer tech, cloud computing, and autonomous vehicles. The two artificial intelligence stocks can potentially generate significant returns for investors.

In particular, Advanced Micro Devices (NASDAQ; AMD) stands out as a significant player in the AI field by leveraging its position as a provider of graphics processing units (GPUs). Additionally, the recent introduction of its MI300X AI GPU has garnered massive interest from industry giants like Microsoft and Meta Platforms. This indicates a promising outlook for the company’s AI endeavours.

Furthermore, AMD is expected to see an increase in earnings over the next two fiscal years. This will make it an attractive opportunity for investors interested in benefiting from the advancements in AI technology.

Despite facing challenges in recent years, Intel (NASDAQ: INTC) is well-positioned for a comeback, too. Its strategic shift in business model approach and significant investments in AI have contributed to this.

Additionally, the company’s move towards an internal foundry model and the development of AI chips showcase its dedication to recapturing market share and fostering innovation.

Analysts foresee significant earnings growth for Intel in the future. This will position it as an appealing investment choice with the potential for substantial profits.

With the expansion of the AI market, investors have chances to leverage this innovative technology that is propelling various industries forward. By making strategic investment decisions, these AI-focused stocks could lead investors on a path towards millionaire status.

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