2 No-Brainer AI Stocks to Buy Right Now

In the current landscape, stocks across various industries have faced challenges, particularly in the technology sector. Investors are concerned about potential tariffs impacting earnings and economic growth. However, amid this uncertainty, certain technology companies are positioned for long-term success—especially those in the artificial intelligence (AI) sector. With valuations declining for many top players, it’s an opportune moment to consider strategic investments. Here are two AI stocks that stand out as no-brainers to buy right now.

1. Advanced Micro Devices (AMD)

When it comes to AI chips, many think of Nvidia, but Advanced Micro Devices (AMD) is also making significant strides in this market. Here’s why AMD is a compelling choice:

Key Highlights:

• Leadership in CPUs: AMD has established itself as a leader in central processing units (CPUs), the backbone of computer processing.
• Focus on Data Centers: Recently, AMD has shifted its focus to data center operations, supplying both CPUs and graphics processing units (GPUs) for the AI market.
• Impressive Growth: Last year, AMD's EPYC processors and AMD Instinct accelerators helped nearly double data center revenues, reaching over $12 billion.
• CEO Insights: CEO Lisa Su emphasizes "clear opportunities for continued growth" in the AI sector.

Valuation:

• Currently, AMD shares trade at 20 times forward earnings estimates, down from 28 in January, making it an attractive entry point for investors looking to capitalize on the AI boom.

2. Alphabet (GOOGL)

Alphabet, the parent company of Google, is another excellent investment opportunity, particularly in the realm of cloud computing and AI. Here’s what makes Alphabet a strong contender:

Key Highlights:

• Cloud Computing Position: While Alphabet’s Google Cloud ranks third behind Amazon Web Services and Microsoft Azure, it still boasts impressive growth rates.
• AI Market Demand: Google Cloud recently reported a 30% revenue increase, reaching $12 billion, largely driven by strong demand from AI customers.
• Expansion Plans: Alphabet is actively expanding its cloud services, with 11 new cloud regions and data centers launched recently across the U.S. and internationally.
• Search Engine Dominance: In addition to cloud services, Alphabet generates substantial revenue from its Google Search platform, maintaining its position as a top advertising medium.

Valuation:

• Alphabet has seen its valuation drop to 17 times forward earnings, making it an appealing option for investors, especially as AI continues to grow.

Conclusion

In the evolving market landscape, both Advanced Micro Devices (AMD) and Alphabet (GOOGL) present compelling investment opportunities in the AI sector. With their strong growth potential and favorable valuations, these stocks are worth considering for any investor looking to tap into the future of technology.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research or consult a licensed financial advisor before making investment decisions.