2 AI Stocks to Buy in the Current Bull Market

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The S&P 500 index has hit several new highs in January, leading investors to believe that the 2020s are shaping up to be the decade of artificial intelligence (AI). With the fear of being left behind by competitors, companies are feeling a sense of urgency to invest in this revolutionary technology. Market intelligence specialist IDC forecasts that spending on AI solutions will reach over $500 billion annually by 2027. This projected spending growth has led analysts to recommend two top stocks to buy right now, Super Micro Computer and Nvidia, both of which stand to benefit from the AI boom.

Super Micro Computer has seen its share prices soar in recent years due to the rapid expansion of its AI infrastructure. The company’s latest quarterly update shows a massive acceleration in revenue growth, prompting CEO Charles Liang to express confidence that the AI boom will continue for many more quarters, if not years. With profitability that is steadily increasing, analysts expect the company to continue to grow earnings at a rate of 37% per year over the long term. As for Nvidia, the company is expected to experience continued growth driven by high-margin sales of its advanced GPUs for AI and is already working with industry leaders to develop AI infrastructure that could significantly impact the global economy.

The rise of AI and spending growth expectations related to AI solutions has triggered an increase in stock valuations for both Super Micro Computer and Nvidia. As a result, market analysts believe that these companies are likely to continue to grow and gain market share while maintaining relatively attractive stock prices and valuations. With the potential to impact global GDP and the rapidly developing AI landscape, the choice to invest in stocks benefiting from this projected growth is seen as a promising opportunity moving forward.

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