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2 Artificial Intelligence (AI) Stocks to Buy Now That Could Help Set You Up for Life

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Here’s how to stake your claim on the AI gold rush.

The AI market will grow to a stunning $4.8 trillion by 2033, according to the United Nations Conference on Trade and Development. The companies that can help their customers harness the full power of this game-changing technology stand to create fortunes for their shareholders.

To advance your hunt for these wealth builders, read on to learn more about two of the best AI stocks available in the stock market today.

Image source: Getty Images.

1. Taiwan Semiconductor Manufacturing

Chip designers get a lot of attention from investors. Nvidia alone has seen its market value soar to a staggering $4 trillion. But someone must build the cutting-edge chips that Nvidia and other leading tech companies design. That’s the domain of Taiwan Semiconductor Manufacturing (TSM -3.05%), the dominant provider of chip foundry services.

The company known as TSMC commands a nearly 70% share of the global semiconductor manufacturing industry, according to TrendForce. The chipmaker supplies many of the largest and fastest-growing technology markets. Data centers, smartphones, robotics, and autonomous vehicles are just some of the industries TSMC serves. Major clients include Apple, Alphabet, and Advanced Micro Devices. In all, TSMC built 11,878 distinct products for 522 different customers last year.

Partnering with these tech trailblazers has enabled TSMC to grow its revenue and profits by 18% annually since its initial public offering (IPO) in 1994. Management is committed to passing a significant portion of this cash on to shareholders. TSMC has not reduced its cash payout since initiating its dividend in 2004. Its stock currently offers a well-supported and steadily growing 1.2% yield.

This impressive financial performance is likely to continue. TSMC’s earnings surged by over 60% to $2.47 per American depositary receipt (ADR) in the second quarter, fueled by booming sales of AI chips.

2. Amazon

Many of the most powerful AI applications are delivered via the cloud. As the operator of the largest cloud computing platform, Amazon (AMZN -1.16%) is well placed to deliver AI-fueled profits to its shareholders.

Annual cloud platform and infrastructure revenue will approach $1.2 trillion by 2030, according to Goldman Sachs. Despite the rapid growth of Microsoft‘s Azure and Google Cloud, Amazon Web Services (AWS) remains the clear leader in this rapidly expanding market.

Amazon's, Microsoft's, and Google's cloud market shares stood at 30%, 20%, and 13%, respectively, at the end of the second quarter.

Image source: Statista.

AWS is already a $100 billion business with operating margins north of 30%. It’s also growing at a solid clip, with sales up 17% in the second quarter. Amazon’s recent deal with OpenAI, which will make the machine learning pioneer’s AI models available to AWS customers for the first time, should fuel further growth.

Advances in AI should also help to drive Amazon’s profit margins higher in its massive e-commerce operations. The online retail colossus is investing aggressively in automation technology. Amazon deployed its one millionth robot in June. The company is projected to soon have more machines than people working in its giant fulfillment centers. As improvements in AI make robots more capable, Amazon’s labor costs should decline over time.

With both its cloud computing and online retail businesses set to grow more profitable in the coming years, Amazon’s stock is a smart investment today.

Joe Tenebruso has positions in Amazon. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Goldman Sachs Group, International Business Machines, Microsoft, Nvidia, Oracle, Salesforce, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool recommends Alibaba Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.



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AI Insights

LifeLong Learning and TXST expand series on Artificial Intelligence

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Dr. Marianne Reese, Founder and Director of LifeLong Learning, conceived of the AI series due to AI’s exponential growth and the need for the public to understand its uses and limitations.

“AI is a relatively new tool that is being used in ways the public is often unaware of,” Reese noted. “We all need to know more about this powerful technology, understand AI’s positive and concerning applications, and learn the skills necessary to scrutinize the information it generates.

“AI will become increasingly prevalent, so we need to be informed consumers as AI impacts politics, medicine, business, finance and other areas of our lives,” Reese said.

The AI Learning Series is led by Dr. Kimberly Conner, Digital Strategy Lead for Information Technology at Texas State. Connor’s role is to help demystify innovation and make technology approachable for students, staff and faculty. With a rare combination of expertise in law, education and IT, Dr. Connor bridges the gap between complex digital tools and the people who use them.

Almost 80 lifelong learners attended the AI Series Kickoff Event on Tuesday, Aug. 19.

The Sept. 3 class covers AI use of our personal data and AI-generated misinformation and scams.

The Sept. 17 class features a comparison of different AI services (e.g., Chat GPT, Gemini).

The Oct. 1 class covers practical AI tools for daily life, with an exploration of AI applications for communication and creative projects.

The Oct. 15 class covers AI reliability & accuracy, AI limitations and and best practices for verification.

The Sept. 29 class covers AI for personal enrichment, such as enhancing hobbies and expanding personal interests.

The final class on Nov. 3 covers hands-on activities and features a closing presentation.

For more information visit their website at lllsanmarcos.org.



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China Calls for Regulation of Investment in Artificial Intelligence

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In a move reflecting a cautious strategic direction, China has called for curbing “excessive investment” and “random competition” in the artificial intelligence sector, despite its classification as a key driver of national economic growth and a critical competitive field with the United States.

Chang Kailin, a senior official at the National Development and Reform Commission – the highest economic planning body in the country – confirmed that Beijing will take a coordinated and integrated approach to developing artificial intelligence across various provinces, focusing on leveraging the advantages and local industrial resources of each region to avoid duplicating efforts, warning against “herd mentality” in investment without careful planning.

These statements come amid a contraction in China’s manufacturing industries for the fifth consecutive month, reflecting the pressures faced by the world’s second-largest economy, as policymakers attempt to avoid repeating past mistakes like those in the electric vehicle sector, which led to an oversupply of production capacity and subsequent deflationary pressures.

Chinese President Xi Jinping also warned last month against the rush of local governments towards artificial intelligence without proper planning, a clear indication of the Chinese leadership’s desire to regulate the pace of growth in this vital sector.

Despite these warnings, China continues to accelerate the development, application, and governance of artificial intelligence, as the government revealed a new action plan last week aimed at boosting this sector, which includes significant support for private companies and encouragement for the emergence of strong startups capable of global competition, which the National Committee described as a pursuit for the emergence of “black horses” in the innovation race, implicitly referring to notable success stories like the Chinese company DeepMind.

DeepMind gained international fame earlier this year after launching a powerful and low-cost artificial intelligence model, competing with the models of major American companies, igniting a wave of local and international interest in Chinese technologies.

In a separate context, a Bloomberg analysis showed that Chinese technology companies plan to install more than 115,000 artificial intelligence chips produced by the American company Nvidia in massive data centers being built in the desert regions of western China, indicating a continued effort to build strong artificial intelligence infrastructure despite regulatory constraints.

These steps come at a time when Beijing seeks to balance support for technological innovation with regulating investment chaos, in an attempt to shape a more sustainable path for the growth of artificial intelligence within China’s broader economic vision.



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A new research project is the first comprehensive effort to categorize all the ways AI can go wrong, and many of those behaviors resemble human psychiatric disorders.

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Scientists have suggested that when artificial intelligence (AI) goes rogue and starts to act in ways counter to its intended purpose, it exhibits behaviors that resemble psychopathologies in humans. That’s why they have created a new taxonomy of 32 AI dysfunctions so people in a wide variety of fields can understand the risks of building and deploying AI.

In new research, the scientists set out to categorize the risks of AI in straying from its intended path, drawing analogies with human psychology. The result is “Psychopathia Machinalis” — a framework designed to illuminate the pathologies of AI, as well as how we can counter them. These dysfunctions range from hallucinating answers to a complete misalignment with human values and aims.



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