Prediction markets are booming, with people able to “bet” on anything from sports to the outcome of geopolitical events on these platforms. However, while these products are technically futures contracts under the jurisdiction of the Commodity Futures Trading Commission, I would not consider them a great investment vehicle.
Instead, I recommend sticking with stocks. On that front, let’s look at three artificial intelligence (AI) stocks to bet on right now.
Will AI create the world’s first trillionaire? Our team just published a report on a little-known company, called “Essential Dependency” that provides critical technology to both Nvidia and Intel. Continue »
If you want to invest in AI, you don’t have to be fancy and find an under-the-radar name that no one has heard of before. In fact, buying the world’s largest company would be enough. It will, of course Nvidia (NASDAQ: NVDA )whose graphics processing units (GPUs) are the primary chips used to power AI workloads.
At the same time, the company became the largest company in the world with a wide moat built from its CUDA software platform. With AI infrastructure costs set to continue high, Nvidia is a great stock to continue betting on.
While 2 distant to Nvidia in the GPU market Advanced Micro Devices (NASDAQ: AMD ) It seems to be taking part after the big deals with OpenAI Meta platformswhere both companies will have stakes in the chipmaker. Given its much smaller revenue base than Nvidia’s, this commitment should be a major growth driver for the company, while it looks set to continue to hold a place in a fast-growing market.
Not to be overlooked is the company’s position in the central processing unit (CPU) data center space, where it is the current market leader. With the proliferation of AI agents, there will be a need for more CPUs, representing a huge growth opportunity for AMD.
a condition Micron Technology (NASDAQ: MU ) There is a bet that the cyclical nature of this business will turn into a secular trend driven by the AI data center boom. The company is one of the big three dynamic random access memory (DRAM) makers, and GPUs and other AI chips must be packaged with a special form of DRAM called high-bandwidth memory (HBM) to perform at their best.
HBM is in short supply while demand is through the roof, and this is only exacerbated by the fact that HBM requires three times the wafer capacity of regular DRAM. Given this dynamic, Micron is seeing both its revenue increase and its gross margin balloon. It also begins to yield a long-term commitment for HBM. Given these dynamics, the stock still has plenty of room to run.
