2 Top Artificial Intelligence (AI) Stocks to Buy With $1,000 Right Now

The artificial intelligence revolution isn't just a buzzword; it's a profound technological shift creating unprecedented investment opportunities. As AI applications become ubiquitous, the companies providing the foundational infrastructure for this innovation are poised for significant long-term growth. Many investors seek to effectively participate without chasing fleeting trends. The answer often lies in identifying the essential enablers of AI.

If you're looking to strategically allocate capital, even $1,000, into the core drivers of AI, focusing on suppliers of critical components and cloud services offers a compelling path. These businesses are building the very ocean on which the AI revolution sails. We’ll explore two such companies that stand out for their robust positioning and impressive growth.

Taiwan Semiconductor Manufacturing (TSMC): The Unseen Giant of AI Chips

Behind every cutting-edge AI model lies a complex network of semiconductors. Taiwan Semiconductor Manufacturing (TSMC) is the undisputed leader in this critical domain, fabricating advanced silicon for global tech behemoths.

Powering the AI Infrastructure

TSMC's role is indispensable, at the heart of the supply chain for AI powerhouses like Nvidia, Advanced Micro Devices (AMD), and Broadcom. This unique position means that as demand for AI chips surges, TSMC directly benefits from increased production from multiple clients. Historically, TSMC has delivered exceptional resilience and growth, with its stock soaring over 1,200% in the last decade, far outpacing the Nasdaq.

Capturing AI's Explosive Growth

AI demand is increasingly impacting TSMC. The company reported a 44% year-over-year surge in Q2 revenue, fueled by robust demand for its advanced processors. Management projects AI accelerator revenue to double in 2025 and grow at a mid-40% annual rate for the next five years. This sustained trajectory positions TSMC as a foundational, diversified investment within the AI chip market.

Oracle: The Cloud and Database Architect for AI

While chips provide processing power, robust cloud infrastructure and sophisticated data management are equally crucial for AI. Oracle has become a formidable player here, benefiting from enterprise data migration to the cloud. Unlike some direct competitors, Oracle’s strategy is elegantly integrated across multiple leading platforms.

A Multicloud Advantage

Oracle’s database and software applications are integral to all major cloud platforms, including Amazon, Alphabet, and Microsoft. This "multicloud" approach makes Oracle a beneficiary of overall cloud growth. The company has made substantial investments in global data center infrastructure and AI capabilities, capitalizing on urgent AI-driven solution demand.

Unprecedented Contracted Growth

The impact of AI on Oracle’s business is undeniable. Cloud infrastructure service revenue jumped 54% year-over-year last quarter. More telling is the remarkable 359% year-over-year increase in its Remaining Performance Obligations (RPO), reaching an astonishing $455 billion. This immense pipeline of future business is overwhelmingly driven by AI demand for inferencing and advanced data insights.

Oracle provides a secure, powerful platform for businesses to leverage large language models like OpenAI’s ChatGPT or Google Gemini, extracting greater value from their proprietary data. This strategic positioning in foundational cloud services and specialized AI applications makes Oracle a uniquely compelling long-term investment.

Act Now to Position Your Portfolio for the AI Era

The long-term trajectory for artificial intelligence is exponential. Investing in companies providing essential building blocks—from AI processing chips to cloud infrastructure—offers a strategic way to participate. Taiwan Semiconductor Manufacturing and Oracle exemplify such opportunities, with robust business models and proven growth. Considering these leaders for a portion of your long-term investment capital could prove to be a wise move as the AI revolution continues to unfold.