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Three AI Stocks That Make Investing Look Easy with $400
Artificial intelligence (AI) is changing how we live, work, and even play. From voice assistants like Alexa and Siri to self-driving cars, AI is more important than ever. But, the most exciting part? AI is also transforming businesses and creating new opportunities for investors. Markets might get unpredictable, but AI continues to show strong potential for future growth. If you’ve got $400 to play with, there are some AI-focused companies you shouldn’t overlook.
In this article, we’re focusing on three standout companies that are doing impressive things in AI: Amazon, Taiwan Semiconductor Manufacturing, and UiPath. The best part is that buying these stocks today could be your entry into the ever-evolving AI world, positioning you for potential gains as the technology continues to advance.
1. Amazon (NASDAQ: AMZN) – The E-commerce and Cloud Giant Battling in AI
Amazon has become a household name, known primarily for its massive online marketplace. But the company is also a huge player in the AI space—especially with its Amazon Web Services (AWS). In fact, AWS is what really put Amazon on the AI map and remains one of the company’s strongest revenue drivers. AWS is a leader in cloud computing, which is critical for AI because all that data and computing power needs somewhere to live. And Amazon is committed to expanding its AI tools for developers and businesses everywhere.
One of the reasons Amazon is a smart pick for AI enthusiasts is that the company is embedding AI into its business at every level. Their e-commerce side uses complex AI algorithms to recommend products and manage logistics. If you’ve ever wondered how Amazon knows exactly what you want before you even know it, those predictive models are powered by AI.
Moreover, as the demand for cloud computing grows, AWS is working on AI-driven services, especially in machine learning. Services like Amazon SageMaker help developers build, train, and deploy machine learning models. Thousands of companies already use AWS AI tools for everything ranging from customer service chatbots to analyzing massive amounts of data, and this will only increase as AI becomes more sophisticated.
Recently, Amazon announced new investments in AI to enhance its existing services and infrastructure. They’re not stopping with just cloud and e-commerce. Innovation continues in areas like Alexa, Amazon’s AI-powered voice assistant. Buying Amazon right now offers exposure to one of the best-positioned companies in the world as AI reshapes industries left and right.
2. Taiwan Semiconductor Manufacturing (NYSE: TSM) – The Chipmaker Behind the AI Revolution
When it comes to AI, having powerful hardware is essential to powering all the smart software. This is where Taiwan Semiconductor Manufacturing (TSMC) comes in. You’ve likely heard the term “semiconductors,” but maybe you don’t realize just how integral they are to modern tech—especially AI. Semiconductors are the tiny chips that allow computers and devices to process information. In many ways, semiconductors are the brains behind AI systems.
TSMC is one of the most important semiconductor manufacturers on the planet, making chips for tech giants like Apple, AMD, and Nvidia. Nvidia is particularly interesting for AI investors because their graphics processing units (GPUs) are tailored for AI tasks like deep learning and neural network processing. So, when Nvidia sells more AI-focused chips, TSMC manufactures those chips—making them a critical part of the AI supply chain.
The semiconductor market can be volatile due to supply and demand fluctuations, but AI innovations mean there’s an increasing and consistent need for advanced chips. TSMC is already supplying the cutting-edge 5-nanometer and high-performance chips expected to fuel future AI growth.
Beyond current AI needs, TSMC has long-standing relationships with major semiconductor designers and focuses heavily on constantly improving its manufacturing process. You might not see TSMC on a store shelf, but its technology powers some of the biggest companies in the world and is at the epicenter of the AI revolution. While semiconductor stocks might seem complex, investing in TSMC is one way to simplify and ride the AI wave with a solid, time-tested performer.
3. UiPath (NYSE: PATH) – Bringing Automation into the Mainstream
UiPath is a unique company because it combines AI with something called robotic process automation (RPA). Now, don’t imagine robots like you’d see in a sci-fi movie. Instead, think about software bots—digital assistants that automate repetitive tasks like data entry, creating reports, or even customer service operations. RPA helps businesses run more efficiently by taking those time-consuming, repetitive tasks off human hands. That’s where AI steps in to make UiPath’s offering even more powerful by injecting intelligence into these digital workers.
UiPath’s AI-powered software products are designed to make businesses faster and more efficient by automating everything from mundane tasks to complex workflows. The company is seeing growing adoption in industries like healthcare, finance, and insurance. They have showcased how technology like theirs can save money, cut down on errors, and help employees focus on more meaningful work.
What makes UiPath particularly attractive as an AI investment is its future potential. As businesses continue to look for ways to leverage AI and automation to get the most out of their resources, UiPath is well-positioned to grow. Their focus on artificial intelligence and RPA means they’re benefiting from two major trends at once—AI advancements and the global shift towards automation.
If you’re looking for a smaller company with rapid growth potential, UiPath fits the bill. Their revenue is steadily climbing, and they’re successfully capitalizing on the growing demand for AI automation solutions. Buying shares in UiPath now offers a chance to get in front of a growing movement among businesses to put software and AI at the core of their processes.
Why These Stocks Are Worth Your $400 – Keep Diversification in Mind
The cool thing about today’s investing landscape is that you no longer need thousands of dollars to begin building a portfolio. Whether you’re aiming for giants like Amazon, major players like Taiwan Semiconductor, or high-growth companies like UiPath, all of the above are accessible with just $400.
Furthermore, all three companies serve different parts of the AI sector. By spreading your $400 across them, you’re putting your money into different areas of AI, a valuable strategy in case one sector sees faster or slower growth than another.
Let’s say Amazon’s cloud-based AI services grow faster than expected. You benefit. Or, what if new AI chips make TSMC’s tech more vital than ever? Again, you’re in a great spot. And, don’t forget UiPath bringing automation tools to industries that desperately need them. This balance across three major AI sectors positions you to ride multiple growth waves at the same time: cloud, hardware, and automation.
The Long-Term Outlook: AI’s Influence Will Only Get Bigger
Many experts believe we are just scratching the surface of what AI can do. The rapid advances we’ve seen in areas like machine learning, natural language processing, and self-driving cars are just the tip of the iceberg. AI is expected to infiltrate almost every aspect of life in the coming decades. This makes companies deeply involved in AI development solid candidates for long-term investments.
Even if short-term market fluctuations make you anxious, long-term AI growth potential continues to look promising. All three companies—Amazon, TSMC, and UiPath—are setting themselves up to benefit from AI expansion by either developing crucial hardware, software, or infrastructure for AI technologies.
If you can, think of your $400 investment as a step towards securing a stake in the tech of the future. As AI becomes more embedded in how the world works, these stocks could help your portfolio grow alongside it.
Final Thought: A Promising Start with AI
In the end, these three companies represent some of the best ways to dive into the rapidly advancing world of AI. For just $400, you can own shares in businesses that could help shape tomorrow by powering AI development across various sectors like e-commerce, cloud computing, chip manufacturing, and process automation. Of course, investing always carries risks, but with the rapid pace of AI development, keeping these companies in your portfolio might just be a no-brainer.
When it comes to balancing risk and opportunity, these three AI stocks offer an excellent opening act for building a future-proof portfolio in tech. So, why not take that first step today and see where AI can take your investments!