We are currently witnessing the onset of the artificial intelligence (AI) revolution, with computers evolving to become more intelligent and intertwined with our daily lives.
Back in the 1980s, semiconductors had limited applications in computers, servers, electronics, and telecommunications devices. Fast forward 40 years, the semiconductor content in these devices has significantly increased, ushering in the age of the internet, mobile revolution, and cloud expansion. As we enter the digital era, the AI revolution stands poised to elevate digital cloud solutions to unprecedented heights.
Given this landscape, individuals may consider investing in the AI revolution within the digital realm with a mere $200.
AI stocks have surged in value, with many AI semiconductor stocks now trading above $150. Despite this, is a $200 investment sufficient to acquire three AI stocks for your portfolio?
The AI ecosystem encompasses a vast value chain spanning chip companies, cloud companies, digital service providers, device manufacturers, and automakers, among others. When delving deeper, niche and riskier categories surface. An approach could involve starting with broader categories and distributing investments accordingly.
Delving into the realm of semiconductor stocks with advanced AI technology can yield significant returns. Notably, companies like Nvidia have devoted substantial resources to developing advanced AI chips, capitalizing on the rapid advancements in this space. Nvidia’s strategic focus on designing holistic AI hardware/software solutions positions it favorably for various tech cycles like self-driving cars, automated factories, and smart cities. The recent stock split has made Nvidia’s stock more accessible, coupled with market trends pulling the stock price within the $100 range, offering growth potential in the coming years.
While many lucrative AI stocks trade on NASDAQ, the TSX also hosts promising AI stocks anticipated to gain momentum in the AI landscape. Hive Digital Technologies, for instance, has expanded its services beyond Bitcoin mining to offer GPU-based cloud solutions for high-performance and AI computing, aligning with evolving market demands in the digital realm. Although Bitcoin mining remains a primary revenue stream for Hive, the growth of digital solutions signals substantial revenue potential in the near future, positioning investors to capitalize on both the AI and blockchain revolutions. Trading around the $4 range, investors could acquire multiple shares at an affordable price.
Industries applying AI technological advancements might appeal to investors seeking to leverage AI capabilities. Docebo, for instance, uses AI to enhance its learning management system by generating training content and offering intelligent content recommendations for companies aiming to train their employees and clientele. With a track record of revenue growth through customer expansion and increased average contract value per customer, Docebo’s stock price may not necessarily reflect its fundamental growth metrics, but it operates in a competitive landscape where AI efficiency plays a pivotal role.
An investment strategy might involve purchasing single stocks of Nvidia and Docebo alongside 10-12 shares of Hive for $200, facilitating a diverse AI investment portfolio. By strategically combining these three stocks, investors can gain exposure to various stages of the AI revolution, potentially generating short-, medium-, and long-term returns.
