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Nov. 17, 2024, 10:24 p.m.
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Top AI Stocks to Watch: Taiwan Semiconductor, Tesla, and Qualcomm

The stock market has surged, influenced by excitement over artificial intelligence (AI), which according to McKinsey, could add $13 trillion to the global economy by 2030. While some stocks may seem overvalued, there are still promising AI stocks worth investment. Three Fool. com contributors recommend Taiwan Semiconductor Manufacturing (NYSE: TSM), Tesla (NASDAQ: TSLA), and Qualcomm (NASDAQ: QCOM) as worthy AI investments. **Taiwan Semiconductor (Justin Pope):** The world's largest semiconductor foundry, Taiwan Semiconductor, manufactures chips for major companies like Nvidia and AMD, holding an estimated 62% of the global market as of Q2 2024. AI chip demand is expected to grow significantly, positioning the company well for future growth. Despite geopolitical concerns with China, moves to reduce risk, such as investing $65 billion in new U. S. foundries, make it a strong investment. **Tesla (Jake Lerch):** While primarily known for electric vehicles, Tesla's investments in AI are noteworthy. Its vehicles are platforms equipped with sensors sending data to supercomputers for improving its Full Self-Driving system.

Successful development of autonomous driving could significantly increase Tesla's market cap. Tesla's AI initiatives, like its Optimus robot and robotaxis, present further growth opportunities. **Qualcomm (Will Healy):** Qualcomm leads in AI chip technology with its Snapdragon and Elite Mobile Platform chipsets. It has expanded into automotive, industrial, and PC segments, with its automotive sector seeing substantial growth. Despite challenges in its handset business and a legal dispute with Arm Holdings, Qualcomm's AI-driven diversification shows promise. It continues to grow revenue and maintain competitive stock pricing. Don't miss potential opportunities in the market. Historically, doubled investment in promising stocks like Amazon, Apple, and Netflix has yielded substantial returns. Currently, "Double Down" stock alerts are available for three promising companies. Investors should consider these AI-focused stocks for their potential to drive significant growth and returns, despite some market uncertainties.



Brief news summary

The stock market is increasingly excited about the prospects of artificial intelligence (AI), spurred by McKinsey's prediction that AI could contribute $13 trillion to the global economy by 2030. Despite concerns about potential overvaluation, analysts have identified notable investment opportunities in AI-focused companies like Taiwan Semiconductor Manufacturing Company (TSMC), Tesla, and Qualcomm. Justin Pope emphasizes TSMC's leadership in the semiconductor foundry industry, controlling 62% of the market. This positions TSMC to capitalize on the anticipated 60% annual growth in AI chip demand, although there are geopolitical risks with China. Jake Lerch highlights Tesla's AI advancements, which extend beyond electric vehicles. Tesla’s extensive data collection enhances its Full Self-Driving system and paves the way for initiatives like robotaxis, which could substantially increase its market value. Will Healy focuses on Qualcomm’s AI efforts, including the development of Snapdragon 8 Gen 3 chipsets and expansion into automotive and IoT sectors. Although Qualcomm faces legal challenges with Arm Holdings, its financial growth and diversification make it a compelling investment choice. Together, these companies underscore the significant investment opportunities in the rapidly growing AI market.

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Top AI Stocks to Watch: Taiwan Semiconductor, Tesla, and Qualcomm

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