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Foreign media names 3 AI infrastructure stocks to buy now

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • Foreign media highlights three stocks poised to benefit from the ongoing AI infrastructure boom.
  • NVIDIA, SK Hynix, and TSMC are identified as key beneficiaries due to their roles in AI chip production, memory, and manufacturing.
  • Despite previous concerns about a slowdown, AI investment continues to accelerate, driving demand for these companies.

As tech giants like Alphabet and Amazon increase their capital expenditures for artificial intelligence infrastructure, now may be an opportune time to invest in related stocks. Many AI-related shares have fallen from their peaks amid earlier concerns about slowing investment, but AI spending shows no signs of cooling and is instead accelerating.

AI investment shows no signs of cooling and is instead accelerating.

— The Motley FoolReporting on the current state of AI infrastructure investment.

NVIDIA remains a leading beneficiary, with its GPUs dominating AI model training and its CUDA software platform creating a significant competitive advantage. The company's high-speed networking equipment, CPUs, and DPUs are also seeing increased demand as AI computing scales up. NVIDIA's expansion into the AI inference market, which is expected to surpass AI model training in size, is another key advantage. The stock currently trades at an attractive price-to-earnings ratio of about 16.

NVIDIA remains a leading beneficiary, with its GPUs dominating AI model training and its CUDA software platform creating a significant competitive advantage.

— The Motley FoolDescribing NVIDIA's position in the AI market.

SK Hynix, a global leader in High Bandwidth Memory (HBM) with over 50% market share, is a crucial supplier to NVIDIA. The demand for HBM, essential for boosting AI chip efficiency, is surging due to the rapid growth of AI and increasing inference needs. SK Hynix's long-term supply agreement with NVIDIA and the anticipated tight DRAM market in the coming years position the company for further profit growth. Its P/E ratio is currently a low 5.

SK Hynix, a global leader in High Bandwidth Memory (HBM) with over 50% market share, is a crucial supplier to NVIDIA.

— The Motley FoolHighlighting SK Hynix's role in the AI supply chain.

TSMC is an indispensable player in the AI supply chain for chip manufacturing. Its advanced manufacturing technology and high-yield, large-scale production capabilities make it the primary foundry for high-end chips. With the continuous build-out of AI data centers, demand for various AI chips is rising. TSMC is expanding its advanced process capacity to meet this demand. Its technological leadership and strong relationships with major chip designers suggest it will continue to benefit from AI infrastructure investments. The stock's P/E ratio is around 19, offering investment appeal given its growth prospects.

TSMC is an indispensable player in the AI supply chain for chip manufacturing.

— The Motley FoolExplaining TSMC's importance in advanced chip production.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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