5 Genius AI Stock Picks (Hint: Nvidia Is One of Them)

Artificial intelligence (AI) stocks aren't nearly as popular with the market as they once were. There may be some investor fatigue setting in because it has been the sector to invest in since 2023. However, I think investors need to get used to the new paradigm, as AI stocks will likely be among the best performers for the next decade. There is still plenty of infrastructure buildout left to go, as well as AI application companies that can automate and take over tasks that humans used to do.

I've got five genius AI stocks that could make investors a ton of money, and I think these are some of the best investments anyone can make right now.

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1. Nvidia

No good AI investment list would be complete without Nvidia (NASDAQ: NVDA). There have been few companies that have benefited as much from the AI buildout as Nvidia, but that's because Nvidia worked to put itself in that position. Nvidia is by far and away the market leader in AI computing chips and its graphics processing units (GPUs), and the other products that support it are the best available options for training and running inference on a wide variety of workload types.

Nvidia is still growing at a rapid pace from all of the AI expansion, with the average Wall Street analyst projecting 71% revenue growth this year. However, the AI buildout is expected to last for many years beyond 2026, making Nvidia a solid long-term stock pick in the AI realm.

2. Broadcom

Broadcom (NASDAQ: AVGO) is also making AI computing chips. However, it's taking a different approach. Instead of designing a device that can handle nearly every workload that's thrown at it (which is Nvidia GPU territory), it's developing application-specific integrated circuits (ASICs) designed for a specific customer.

These ASICs are far more efficient than GPUs and cost less. However, they cannot handle the wide variety of workloads that GPUs can, so they aren't a direct replacement. Nearly every AI hyperscaler is working with Broadcom or another manufacturer to develop custom AI chips, and I'd expect this segment of the market to boom over the next few years.

Broadcom believes that custom AI chips could be a $100 billion business for them by the end of 2027. With the entire company generating only $68 billion over the past 12 months, that's huge growth ahead.

3. Taiwan Semiconductor

Nvidia and Broadcom couldn't be successful without Taiwan Semiconductor Manufacturing (NYSE: TSM). It is the primary logic chip manufacturer in the world for AI firms, and it has countless top-tier customers. Taiwan Semiconductor is seeing huge demand for AI chips and forecasts that its AI chip revenue will grow at a mid- to high-50% compound annual growth rate (CAGR) from 2024 until 2029. That indicates that the AI buildout is far from over, and Taiwan Semi is spending $52 billion to $56 billion on capital expenditures this year to increase production capacity to meet demand.

All of those factors point to Taiwan Semiconductor being a multi-year success story, and I think investors would be wise to have some exposure to Taiwan Semiconductor in their portfolio.

4. Nebius

Nebius (NASDAQ: NBIS) is the fastest-growing stock on this list, which is saying something, considering Nvidia is expected to grow its revenue at a 71% pace. Nebius is a neocloud company, meaning it specializes in AI cloud computing. Demand for Nebius's services has been unprecedented, as it has access to all the cutting-edge chip technology from Nvidia.

This year, the company expects its annual run rate to rise to $7 billion to $9 billion, up from $1.25 billion at the end of 2025. If it can deliver that level of growth, Nebius will be an incredible stock to own. Furthermore, cloud computing contracts are usually multiyear, so this secures growth for many years to come.

5. SoundHound AI

Lastly, there is SoundHound AI (NASDAQ: SOUN). It's a solid pick because of what it's aiming to do. The company combines generative AI technology with audio recognition, which is a key piece of AI automation in several industries. Right now, it's incredibly popular in the restaurant industry because it automates drive-thru order taking.

This is a relatively simple program, as there are only so many combinations and items to choose from. However, this product could eventually morph into something that replaces vast swaths of customer service agents in the financial, insurance, and healthcare industries.

SoundHound AI has a bright future, but it won't be easy to succeed. I still think it is a great long-term shot, as the upside for its stock will be massive if the company achieves its goals.

Keithen Drury has positions in Broadcom, Nebius Group, Nvidia, SoundHound AI, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Nvidia, SoundHound AI, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.