2 artificial intelligence (AI) stocks to buy now that could make you a millionaire

The dazzling displays of AI, from eloquent chatbots like ChatGPT to sophisticated image generators, capture our imaginations. But while the spotlight often shines on these groundbreaking applications, a far more fundamental and often overlooked opportunity lies beneath the surface: the robust infrastructure making it all possible. This foundational layer, built on powerful chips and expansive cloud computing platforms, is where substantial wealth is being created.

The Unseen Engine of AI's Gold Rush

Artificial intelligence isn't magic; it runs on meticulously designed systems. These systems demand immense processing power and data storage, creating a booming industry for the companies that provide these essential components. Investing in these "picks and shovels" of the AI revolution positions you to benefit from every new AI innovation, regardless of which application ultimately dominates the market. This focus on infrastructure mitigates risk while tapping into AI's explosive growth.

Oracle: Powering AI's Data Demands

Larry Ellison built Oracle on data, a prescient move that now places the company at the heart of the AI era. AI thrives on data, and Oracle, with its deep database expertise and rapidly expanding cloud infrastructure, is uniquely positioned.

Expanding Cloud Footprint

While smaller than some hyperscaler rivals, Oracle's cloud platform is experiencing rapid acceleration. Its strategic relationships with AI powerhouses like OpenAI, TikTok, Meta Platforms, and xAI are driving this growth. These partnerships are not just symbolic; they translate into significant financial commitments.

Unprecedented Growth Trajectory

Oracle recently reported a 12% year-over-year revenue increase to $15 billion, propelled by a remarkable 55% surge in cloud infrastructure revenue to $3.3 billion. Even more compelling are its remaining performance obligations, which skyrocketed by 359% to an astounding $455 billion. A substantial $300 billion of this represents future sales from providing computing resources to OpenAI alone, demonstrating the scale of demand. Management projects an impressive 31% compound annual growth rate for revenue, reaching $225 billion by fiscal 2030, with adjusted earnings growing 28% annually to $21 per share over the next five years. This paints a picture of sustained, robust expansion.

Taiwan Semiconductor Manufacturing (TSMC): The Architect of AI Chips

Behind every powerful AI application is an equally powerful semiconductor chip, and Taiwan Semiconductor Manufacturing (TSMC) is the undisputed leader in bringing these chips to life. TSMC is the world's premier foundry service provider, crafting the advanced silicon designs from giants like Nvidia and Advanced Micro Devices.

Dominating the Chip Market

TSMC's foundry market share climbed to 70% in the second quarter, a testament to its technological prowess and critical role in the global supply chain. This dominance is fueled by strong demand across various sectors, particularly from graphics processing units (GPUs) essential for AI applications. The company’s revenue jumped 30% year-over-year to $33 billion in the third quarter, with earnings per American depositary receipt (ADR) rising an even higher 39% to $2.92, reflecting significant scale efficiencies.

Future Demand and Consistent Performance

Upcoming product launches, such as Apple's new iPhone 17, are set to boost TSMC's smartphone chip revenue. Crucially, cloud infrastructure providers—including Amazon, Microsoft, and Alphabet, all TSMC customers—plan to invest over $520 billion in 2026 to expand their networks, with a significant portion allocated to AI chips. TSMC's earnings have consistently grown by 18% annually since its public offering in 1994, a remarkable track record that is expected to continue given its central position in the AI industry. This consistent, long-term growth is precisely what can build substantial wealth for discerning investors.

Seize the Foundation of the Future

The AI revolution is not just about the applications we see; it's profoundly shaped by the infrastructure beneath. Companies like Oracle and Taiwan Semiconductor Manufacturing are not merely participating in this revolution; they are building its very bedrock. By focusing on these essential infrastructure providers, investors can tap into a durable and high-growth segment of the AI market. Consider these companies as potential cornerstones of a portfolio aimed at capitalizing on the enduring power of artificial intelligence. Your research today could pave the way for significant long-term returns.