Artificial intelligence (AI) is rapidly transforming various industries, offering unparalleled opportunities for enhancing productivity and efficiency. By automating repetitive tasks, AI enables businesses, governments, and organizations to optimize operations and improve outcomes. This technological shift is set to significantly boost the global gross domestic product (GDP), contributing trillions to the world’s economy.
The Economic Impact of AI
The increasing adoption of AI is driving substantial investments in related hardware and software, with market research firm IDC predicting global spending on AI infrastructure will surpass $200 billion by 2028. This marks a noticeable increase from the projected $150 billion spending in 2023. On the software side, the AI platforms market is anticipated to grow at an annual rate of nearly 41% through 2028.
Investors are keen on identifying potential winners in this lucrative market, and two companies stand out for their strategic positioning and growth potential.
Taiwan Semiconductor Manufacturing Co. (TSMC)
Taiwan Semiconductor Manufacturing (TSMC) offers a prime opportunity for investors to benefit from the surge in AI infrastructure investments. As the world’s largest semiconductor foundry, TSMC manufactures semiconductors on a large scale for leading chip designers like Nvidia, Broadcom, AMD, and Marvell Technology.
Key Financial Highlights:
– Market Cap: $1.1 trillion
– Day’s Range: $209.46 – $213.26
– 52-week Range: $133.57 – $226.40
– Dividend Yield: 1.52%
TSMC’s clients are experiencing remarkable growth in AI chip sales, positively impacting the company’s financials. Nvidia, for instance, reported a 73% increase in data center revenue, while Broadcom’s AI revenue surged by 46%. Marvell Technology also witnessed robust demand for its custom AI processors.
The Future Outlook:
– Broadcom predicts a serviceable addressable market of $60 billion to $90 billion for its chips over the next three years.
– The data center graphics card market is expected to grow at a 30% annual rate over the next decade.
TSMC forecasts its AI accelerator revenue to double in 2025, with a compound annual growth rate (CAGR) in the mid-40% range over the next five years. The company reported a 43% revenue increase in the first four months of 2025 compared to the same period last year.
With a 67% share of the global foundry market, TSMC holds a strong competitive edge, well-positioned to capitalize on the growing demand for AI chips. Its trailing earnings multiple of 24 suggests that investors are getting a favorable deal on this AI stock.
C3.ai: Pioneering AI Software Solutions
C3.ai is a pure-play enterprise AI software provider witnessing significant customer interest. The company’s AI software is becoming increasingly popular among businesses and governments, providing a robust growth tailwind.
Recent Developments:
C3.ai has secured contracts with the U.S. Air Force (USAF), deploying its platform for predictive maintenance of aircraft and ground assets. The USAF has increased its contract ceiling for C3.ai’s generative AI software to $450 million from an initial $100 million.
Business Growth:
In fiscal year 2025, C3.ai closed 264 agreements, marking a 38% increase. This included 174 initial production deployments, indicating active pilot projects.
C3.ai CFO Hitesh Lath stated that the company had signed 346 initial production deployments, with 263 still active, indicating ongoing or extended contracts. This suggests potential for further revenue growth.
– Revenue increased by 25% in the last fiscal year, exceeding the previous year’s growth by nine percentage points.
– Management projects a 20% revenue increase for the current fiscal year, potentially reaching $465 million.
C3.ai’s relationships with key federal agencies and major corporations like ExxonMobil, U.S. Steel, and Bristol Myers Squibb enhance its credibility in the AI software market.
Market Performance:
C3.ai’s stock has gained 27% in recent months, and its ability to surpass Wall Street expectations could drive further growth. Investors are encouraged to consider this opportunity before potential gains are realized.
For more insights on AI advancements and market trends, follow us at aitechtrend.com.
Note: This article is inspired by content from https://www.fool.com/investing/2025/06/15/no-brainer-artificial-intelligence-ai-stocks-buy/. It has been rephrased for originality. Images are credited to the original source.