Why 5 ‘Strong Buy’ Top Technology AI Winners Could Explode Higher Like Nvidia

Snowflake posted solid second-quarter results with revenue for the quarter coming in at $674.0 million, which was up 36% year over year. Product revenue for the quarter was $640.2 million, a strong metric of 37% year-over-year growth. Snowflake reported 402 customers with trailing 12-month product revenue greater than $1 million and 639 Forbes Global 2000 customers, which represent 62% and 17% year-over-year growth, respectively. Net revenue retention rate was 142% as of July 31, 2023.

Snowflake stock has a $220 target price at Oppenheimer. The consensus target is $199.26, and Friday’s $152.55 close was up over 3% on the day.

Taiwan Semiconductor

This is perhaps one of the safest ways to play AI, as the chip giant has multiple silos of products to keep momentum moving for the company. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) manufactures, packages, tests and sells integrated circuits and other semiconductor devices in Asia, Europe, the Middle East, the United States and elsewhere.

It provides complementary metal oxide silicon wafer fabrication processes to manufacture logic, mixed-signal, radio frequency and embedded memory semiconductors. The company also offers customer support and engineering services, as well as manufactures masks. Its products are used in high-performance computing, smartphone, Internet of Things, automotive and digital consumer electronics.

It has been reported that the company has placed orders for additional tools that will be used in chip-on-wafer-on-substrate (CoWoS) packaging. CoWoS is an advanced packing process that allows Taiwan Semiconductor to integrate high-bandwidth memory that AI servers use to allow fast data transmission and greater storage capacity while keeping power consumption down, with high-performance computing chips. The demand for this packaging solution is expected to grow between 30% and 40% in 2024, according to market research firm TrendForce.

The $135 Susquehanna price objective compares with a $112.01 consensus target. Taiwan Semiconductor Manufacturing stock ended last week trading at $93.10 a share.

Artificial intelligence is here to stay, and there will continue to be heated discussions about the pros and cons of the industry and the multitude of applications and solutions that can and will be provided. Elon Musk founded OpenAI in 2015 but left the board in 2018 and has cut ties with the company. He has had some harsh words about some of the issues arising from the technology and is working on his own AI to rival the company. That proves that we are still in the formative years and big money will be made in the future.

Originally published at 24/7 Wall St.

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