Despite challenges such as lingering inflation, high interest rates, macroeconomic uncertainties, and geopolitical tensions, the US stock market demonstrated remarkable resilience in 2024. Technology companies, particularly those connected to artificial intelligence (AI) trends, provided much of the market’s lift.
Two industry leaders that are poised for significant gains in 2025 are Taiwan Semiconductor Manufacturing Company (TSMC) and Microsoft. TSMC plays a critical role in the development of AI infrastructure, working with major AI innovators and hyperscalers. The company expects its revenue contribution from AI processors to more than triple in 2024, accounting for mid-teens percentage of its total revenue.
TSMC’s growth prospects are supported by market research firm IDC’s forecast that the global semiconductor industry will grow by 15% in 2025, with the international foundry market expected to grow by 20%. The company is trading at just 10.5 times its trailing 12-month sales, making it a smart AI-powered stock pick.
Microsoft emerged as a compelling top AI pick in 2025, solidifying its position as a front-runner in the AI revolution while maintaining its dominance in traditional software markets. The company’s strategic investment in ChatGPT developer OpenAI has proved transformational, and its integrated advanced AI technologies have driven revenue growth and improved customer retention.
Microsoft’s success in monetizing these AI innovations is evident, with the annual revenue run rate for its AI business expected to cross $10 billion in its fiscal 2025 second quarter. The company’s enterprise AI solutions, mainly Copilots, have been prominent new revenue streams, and OpenAI plans to restructure into a for-profit model, allowing Microsoft to earn profits that exceed its previously set cap.
Both TSMC and Microsoft offer significant growth potential for astute investors who know where to look. Don’t miss this second chance at a potentially lucrative opportunity – act now before it’s too late.
Source: https://finance.yahoo.com/news/2-monster-ai-stocks-buy-130000091.html