Forget Nvidia: 2 Artificial Intelligence (AI) Stocks That Could Also Make You Rich

Forget Nvidia: 2 Artificial Intelligence (AI) Stocks That Could Also Make You Rich

Advanced Micro Devices (AMD) and Symbotic present compelling investment opportunities in the booming AI market.

Artificial intelligence (AI) has emerged as the dominant investment theme of 2023, with tech giants racing to integrate AI technology into their business models. While chipmaker Nvidia has been a frontrunner in this space, under-the-radar investments like Advanced Micro Devices (AMD) and Symbotic could soon steal the spotlight. This article explores why these stocks have the potential to be excellent additions to any investment portfolio.

Advanced Micro Devices:

AMD, a key player in computing hardware, is making significant strides in the AI chip market, posing a challenge to Nvidia’s dominance. While Nvidia has traditionally held the edge in the market, AMD has focused on providing better value for money. As the AI chip market is expected to reach $400 billion by 2027, AMD is well-positioned to capture a lucrative share.

The company recently unveiled two new chips in its M1300 series, designed to run large language models. These chips, comparable to Nvidia’s flagship H100 chip and even outperforming it in some aspects, have attracted major clients like Microsoft and Meta Platforms. As AMD’s AI chip business scales up, investors can expect accelerated revenue growth in the coming quarters.

Symbotic:

Symbotic aims to revolutionize warehouse operations by leveraging AI technology. By automating processes and increasing the efficiency, speed, and accuracy of warehouse operations, Symbotic offers companies a solution to labor cost concerns and productivity challenges. Its warehouse robotics systems have gained significant traction, with retail giant Walmart planning to install them in all its U.S. distribution centers.

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In the fourth quarter, Symbotic reported a 60% year-over-year revenue growth, reaching $391.9 million, driven by robust demand for its automation systems. Although the company is not yet profitable on a GAAP basis, its narrowing net loss indicates a pathway to profitability as it continues to scale up its operations.

Which stock is better for you?

Both AMD and Symbotic offer compelling opportunities in the fast-growing AI market, but they cater to different investment strategies. AMD, as a large and mature company with diversified revenue streams, is a safer bet. On the other hand, Symbotic, with its smaller size and potential for long-term growth, presents an opportunity for higher returns as its business reaches scale.

Conclusion:

As the AI market continues to expand, investors are seeking opportunities beyond the well-known players. Advanced Micro Devices and Symbotic offer unique investment propositions in this space. While AMD challenges Nvidia’s dominance in the AI chip market, Symbotic aims to revolutionize warehouse operations with its AI-driven automation systems. Both stocks have the potential to deliver significant returns for investors willing to tap into the AI revolution.

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