3 Top Artificial Intelligence Stocks to Buy in June

To say that artificial intelligence (AI) has taken the tech world by storm would be an understatement. Although AI technology has been around for decades, the popularity of OpenAI’s ChatGPT and other generative AI tools has catapulted the technology into the mainstream.

With the newfound popularity of AI, companies are rushing to capitalize and spend billions to ensure they aren’t left behind in what some consider the biggest technological development since the introduction of the internet. For investors looking to gain exposure to this explosive trend, the following three companies are excellent options.

1.Microsoft

Microsoft (NASDAQ:MSFT) is one of the few companies that has seen its valuation explode along with the AI ​​hype. With a market capitalization of more than $3.1 trillion, Microsoft is the most valuable public company in the world.

The tech giant has invested billions in OpenAI and formed a strategic partnership that benefits both parties. Azure, Microsoft’s cloud platform, is OpenAI’s computing platform and infrastructure, giving it the supercomputing capabilities it needs to train and deploy his models.

In exchange, Microsoft obtains exclusive licenses for OpenAI’s Large Language Models (LLM). With access to OpenAI’s LLMs (arguably some of the best available), Microsoft can integrate these powerful AI models into its own ecosystem of products and services. From Azure to Office products to Dynamic 365, adding advanced AI capabilities will improve performance, improve user experience, and strengthen Microsoft’s offerings.

When it comes to Azure, AI could fuel a growth machine that is already Microsoft’s fastest-growing segment. In the third quarter of its 2024 fiscal year, Microsoft’s revenue increased 17% year over year to $61.9 billion, driven by 31% revenue growth from Azure and other cloud services.

MSFT Revenue Chart (Quarterly)

Even without recent developments in AI, Microsoft’s products and services were staples in the globalized business world. With this new component, the company is positioning itself to be a technology powerhouse.

2. Semiconductor Manufacturing in Taiwan

Although AI is typically associated with software, there are essential hardware components that should not be overlooked. It’s there that Semiconductor manufacturing in Taiwan (NYSE:TSM) (TSMC) enters the scene. TSMC is the world’s largest semiconductor producer, creating chips that are the cornerstone of the AI ​​pipeline.

TSMC’s chips are used in data centers, graphics processing units (GPUs), AI accelerators and other products that enable faster, more efficient data processing, essential for training, deployment and the functioning of AI applications. Without TSMC’s chips, it could be argued that AI progress would be significantly slowed, making it indispensable in the AI ​​supply chain.

The high performance of TSMC chips has made them the choice of some of the world’s largest technology companies. Microsoft and Amazon (NASDAQ:AMZN) use them for their data centers, Nvidia uses them for his…

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