Which is best AI company with respect to valuation to invest now

US Market & Sectors
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  • Nvidia (NVDA): Nvidia has been highlighted as a leader in AI due to its dominance in producing high-performance chips essential for AI applications. It has a high valuation, but this is justified by its significant revenue growth and market positioning. However, its high P/E ratio might suggest it’s priced at a premium, which could be a risk if growth expectations aren’t met. Nvidia’s market cap has grown substantially, making it one of the few $3 trillion companies, indicating both high expectations and high risk due to its valuation.

  • Microsoft (MSFT): Microsoft has made significant strides in AI, particularly through its investment in OpenAI and the integration of AI across its product suite like Azure, Bing, and Office. Its valuation is seen as high but is supported by steady revenue growth from AI initiatives. Microsoft’s approach includes both internal development and strategic partnerships, which could offer stability and growth in the AI sector.

  • Alphabet (GOOGL): Alphabet, through Google, has been at the forefront of AI research with DeepMind and various AI tools integrated into its services. Its valuation is considered more reasonable compared to some peers, with a focus on long-term AI capabilities in search, cloud, and other verticals. The company’s broad exposure to AI across different sectors might provide a diversified investment in the AI space.

  • Amazon (AMZN): Amazon leverages AI in its AWS cloud computing services, which has seen significant uptake for AI applications. Its valuation reflects not just AI but its entire business ecosystem, yet AI is becoming increasingly central to its operations and customer offerings. Amazon’s approach to AI includes hardware development and cloud services, providing a multifaceted investment opportunity in AI.

  • UiPath (PATH): For those looking at smaller companies with potential for growth, UiPath offers AI-driven process automation solutions. It has recently turned profitable and is seen as attractively valued compared to larger tech giants, with a PEG ratio indicating potential undervaluation for its growth prospects. However, it comes with risks due to its size and competitive landscape.

Adobe (ADBE): Adobe is integrating AI into its creative software suite, such as Photoshop and Illustrator, through features like Adobe Firefly. Trading at a discount relative to its potential, Adobe offers opportunities for long-term growth in the content creation and marketing automation sectors​

Mobileye (MBLY): A leader in AI-powered autonomous driving technology, Mobileye has a proven track record and significant growth potential as the automotive industry transitions toward self-driving solutions​

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Create a Vest and invest in the entire sector. That way you don’t put all your eggs in one basket and bet on entire AI industry to grow.

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What about TSM stock? Are you guys holding it long term?

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Yep. TSM has potential to grow a lot more.

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Apart from individual stocks ? Has anyone considered AI ETFs ? there are multiple AI ETFs to consider

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Any ETFs that you have in mind? Or are you asking for suggestions?

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Surprised no one mentioned ASML. I took a major position in this in November to December. This company wins AI regardless of the competition. Everyone needs better compute and you achieve that with ASML EUV machines which will be used to print next generation chips for TSMC, Samsung, etc.

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ASML is also discussed as a separate post here. Thoughts on ASML?

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I have BOTZ , ROBT and ARTY and in mind. but the holding mix is different in each ETF

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We are building an AI/Robotics Vest portfolio as well. Will more concentrated than an ETF - 10-15 companies vs. the 50-100 that these ETFs have. More details soon!

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AMD presents a strong investment case within the AI sector due to its focus on AI inference, which CEO Lisa Su believes will become a much larger market than training.

While training AI models is compute-intensive and dominated by NVIDIA with its CUDA platform, inference requires less compute and memory, making it more cost-effective to run on CPUs, where AMD excels.

AMD’s expertise in chiplet design allows for the integration of CPU and GPU cores on the same chip, optimizing costs and performance by dynamically allocating resources based on workload needs. This strategic advantage has led to significant revenue growth in AMD’s data center segment, with a 69% increase year-over-year, indicating a shift in demand towards inference.

With projected annual revenue growth of 20% over the next decade, AMD could potentially reach $155 billion in revenue by 2035, suggesting a valuation increase to nearly 10x its current value, making it an attractive investment for those interested in AI technology companies.

Check out the entire thread here: x.com

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I genuinely think it is a cyclical play, but the cycle top is not near any time soon