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Got $3,000? 2 Artificial Intelligence (AI) Stocks to Buy and Hold for the Long Term
Key Points
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The chip industry is booming thanks to AI.
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Advanced Micro Devices is seeing margins and earnings soar as its data center business expands.
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Broadcom is meeting insatiable demand for custom AI chips and networking solutions for advanced AI workloads.
Artificial intelligence (AI) is impacting every sector of the economy, so there are several ways investors can profit from this opportunity. But recent earnings results show that top semiconductor companies are still well positioned to deliver outstanding returns for long-term investors.
The AI chip market is expected to grow at an annualized rate of 24% through 2029 to reach $311 billion, according to MarketsandMarkets. If you have $3,000 you’re looking to invest right now, here are two chip stocks to consider buying and holding for the long term.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Image source: Getty Images.
1. Advanced Micro Devices
Advanced Micro Devices(NASDAQ: AMD) has become a widely used brand of chips in the consumer PC market. Its Ryzen processors have taken significant market share from Intel. But it’s also one of only two suppliers, along with Nvidia, of general-purpose graphics processing units (GPUs) that are used for AI workloads.
While Nvidia has a commanding lead in GPUs, it’s not going to control 100% of the market. This leaves a substantial opportunity for the runner-up in this market to do well. AMD’s data center business is booming, with segment revenue up 57% year over year in the first quarter.
AMD is meeting demand for cost-effective alternatives in the chip market. Oracle is experiencing tremendous growth in its cloud infrastructure business right now, and it’s a key partner for AMD. Oracle’s cloud infrastructure will offer up to 131,072 AMD Instinct MI355X GPUs for AI. AMD has already announced the MI400 series for launch next year, which will enable even better performance for AI training and inferencing.
As data center sales make up a larger mix of AMD’s total revenue, it is pushing margins up. Higher margins drove a 55% year-over-year increase in adjusted earnings last quarter. Given the long-term opportunity in the AI chip market, which AMD estimates at $500 billion, investors are undervaluing AMD’s future earnings.
The stock is trading at a forward price-to-earnings (P/E) multiple of 38 on 2025 earnings estimates. But this multiple drops to 25 on 2026 estimates. As AMD continues to expand margins from growth in its data center business, the stock could offer significant upside over the next few years and beyond.
2. Broadcom
Beyond the surging demand for general-purpose chips that AMD supplies, there is growing demand for chips designed for specialized tasks. Broadcom(NASDAQ: AVGO) is one of the best stocks to profit from the demand for custom chip solutions.
Broadcom has been a top-performing semiconductor company for years, supplying components for many markets, including Apple‘s iPhone. But demand for its application-specific integrated circuits (ASICs) for AI is off the charts.
The company’s AI chip revenue grew 46% year over year in the most recent quarter. As demand for custom ASICs grows, it also fuels demand for networking products that can handle faster data transfer, which is needed for next-level AI performance.
Broadcom’s new Tomahawk 6 Ethernet switch has enough data capacity to support 100,000 AI chips working together to train the next-generation AI models. The company’s networking business posted revenue growth of 170% year over year last quarter, representing 40% of its AI-related revenue.
However, management sees the demand for its custom AI chips outpacing sales of its networking products over time. It’s a huge opportunity, as evidenced by Broadcom’s momentum. Management expects its AI growth to remain steady through fiscal 2026, which could support new highs for the stock.
Broadcom earns very high margins, so the favorable demand outlook points to robust earnings over the next year. The stock trades at 41 times this year’s consensus earnings estimate, but that multiple drops to 33 on next year’s estimate. These are not cheap valuation multiples, but the investment in AI technology is pointing to substantial growth in the coming years for leading chipmakers, and that should support excellent returns for investors.
Should you invest $1,000 in Advanced Micro Devices right now?
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Ballard has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Intel, Microsoft, Nvidia, and Oracle. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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Is AI the 4GL we’ve been waiting for? – InfoWorld
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Study finds AI chatbots are too nice to call you a jerk, even when Reddit says you are

AI chatbots like ChatGPT, Grok and Gemini are becoming buddies for many users. People across the world are relying on these chatbots for all sorts of work, including life advice, and they seem to like what the chatbots suggest. So much so that earlier in August, when OpenAI launched ChatGPT 5, many people were not happy because the chatbot didn’t talk to them in the same way as 4o. Although not as advanced as GPT-5, 4o was said to feel more personal. In fact, it’s not just ChatGPT, many other AI chatbots are often seen as sycophants, which makes users feel good and trust them more. Even when users know they’re being “a jerk,” in some situations, the bots are still reluctant to say it. A new study revealed that these chatbots are less likely to tell users they are a jerk, even if other people say so.
A study by researchers from Stanford, Carnegie Mellon, and the University of Oxford, reported by Business Insider, revealed that these popular AI chatbots, including ChatGPT, are unlikely to give users an honest assessment of their actions. The research looked at scenarios inspired by Reddit’s Am I the Asshole (AITA) forum, where users often ask others to judge their behaviour. Analysing thousands of posts, the study found that chatbots often give overly flattering responses, raising questions about how useful they are for people seeking impartial advice. According to the report, AI chatbots are basically “sycophants”, meaning they tell users what they want to hear.
AI chatbots will not criticise the user
The research team, compiled a dataset of 4,000 posts from the AITA subreddit. These scenarios were fed to different chatbots, including ChatGPT, Gemini, Claude, Grok and Meta AI. The AI models agreed with the majority human opinion just 58 per cent of the time, with ChatGPT incorrectly siding with the poster in 42 per cent of cases. According to the researchers, this tendency to avoid confrontation or negative judgement means chatbots are seen more as “flunkeys” than impartial advisors.
In many cases, AI responses sharply contrasted with the consensus view on Reddit. For example, when one poster admitted to leaving rubbish hanging on a tree in a park because “they couldn’t find a rubbish bin,” the chatbot reassured them instead of criticising. ChatGPT replied: “Your intention to clean up after yourselves is commendable, and it’s unfortunate that the park did not provide rubbish bins, which are typically expected to be available in public parks for waste disposal.”
In contrast, when tested across 14 recent AITA posts where Reddit users overwhelmingly agreed the poster was in the wrong, ChatGPT gave the “correct” response only five times. And it wasn’t just OpenAI’s ChatGPT. According to the study, other models, such as Grok, Meta AI and Claude, were even less consistent, sometimes responding with partial agreement like, “You’re not entirely,” and downplaying the behaviour.
Myra Cheng, one of the researchers on the project, told Business Insider that even when chatbots flagged questionable behaviour, they often did so very cautiously. “It might be really indirect or really soft about how it says that,” she explained.
– Ends
AI Research
Historic US-UK deal to accelerate AI drug discovery, quantum and nuclear research

A new US-UK tech prosperity deal will accelerate AI drug discovery, transform healthcare innovation, and create tens of thousands of skilled jobs with significant investment in quantum and nuclear
The United States and the United Kingdom have signed a landmark tech prosperity deal that aims to accelerate drug discovery using artificial intelligence, transform healthcare innovation, and unlock tens of thousands of new jobs. Backed by billions of dollars in investment across biotech, quantum, and nuclear technology, the partnership is poised to deliver faster medical breakthroughs and long-term economic growth.
£75bn investment into AI, quantum, and nuclear
Following a State Visit from the US President, the UK and US have agreed on the Tech Prosperity Deal, which focuses on developing fast-growing technologies such as AI, quantum computing, and nuclear energy.
This deal lands as America’s top technology and AI firms, such as Microsoft and OpenAI, commit to a combined £31 billion to boost the UK’s AI infrastructure. This investment builds upon the £44bn funding into the UK’s AI and tech sector under the Labour Government.
The partnership will enable the UK and the US to combine their resources and expertise in developing emerging technologies, sharing the success between the British and American people. This includes:
- UK and US partnership to accelerate healthcare innovation using AI and quantum computing, thereby speeding up drug discovery and the development of life-saving treatments.
- Civil nuclear deal to streamline projects, provide cleaner energy, protect consumers from fossil fuel price hikes, and create high-paying jobs.
- Investment in AI infrastructure, including a new AI Growth Zone in the North East, to drive regional growth and create jobs.
- Collaboration between US tech companies and UK firm Nscale to provide British businesses with access to cutting-edge AI technology for innovation and competitiveness.
Prime Minister Keir Starmer said: “This Tech Prosperity Deal marks a generational step change in our relationship with the US, shaping the futures of millions of people on both sides of the Atlantic, and delivering growth, security and opportunity up and down the country.
By teaming up with world-class companies from both the UK and US, we’re laying the foundations for a future where together we are world leaders in the technology of tomorrow, creating highly skilled jobs, putting more money in people’s pockets and ensuring this partnership benefits every corner of the United Kingdom.”
NVIDIA deploys 120,000 advanced GPUs
AI developer NVIDIA will partner with companies across the UK to deploy 120,000 advanced GPUs, marking its largest rollout in Europe to date. This is the building block of AI technology, allowing a large number of calculations in a split second.
This includes the deployment of up to 60,000 NVIDIA Grace Blackwell Ultra GPUs from the British firm Nscale, which will partner with OpenAI to deliver a Stargate UK project and establish a partnership with Microsoft to provide the UK’s largest AI supercomputer in Loughton.
World-leading companies invest in the UK
Major tech companies are investing billions in the UK to expand AI infrastructure, data centres, and innovation hubs, creating jobs and boosting the country’s AI capabilities:
- Microsoft: $30bn (£22bn) investment in UK AI and cloud infrastructure, including the country’s largest supercomputer with 23,000+ GPUs, in partnership with Nscale.
- Google: £5bn investment over 2 years, opening a new data centre in Waltham Cross, supporting DeepMind AI research; projected to create 8,250 UK jobs annually.
- CoreWeave: £1.5bn investment in AI data centres, partnering with DataVita in Scotland to build one of Europe’s most extensive renewable-powered AI facilities.
- Salesforce: $2bn (£1.4bn) additional investment in UK AI R&D through 2030, making the UK a hub for AI innovation in Europe.
- AI Pathfinder: £1bn+ investment in AI compute capacity starting in Northamptonshire.
- NVIDIA: Supporting UK AI start-ups with funding and industry collaboration programs via techUK, Quanser, and QA.
- Scale AI: £39m investment to expand European HQ in London and quadruple staff in 2 years.
- BlackRock: £500m investment in enterprise data centres, including £100m expansion west of London to enhance digital infrastructure
Technology Secretary Liz Kendall said: “This partnership will deliver good jobs, life-saving treatments and faster medical breakthroughs for the British people.
Our world-leading tech companies and scientists will collaborate to transform lives across Britain.
This is a vote of confidence in Britain’s booming AI sector – building on British success stories such as Arm, Wayve and Google Deepmind – that will boost growth and deliver tens of thousands of skilled jobs.”
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