Artificial intelligence (AI) investing continues to be a proven growth trend. Several great stocks investors should consider in March, with a focus on four direct beneficiaries of AI spending that look like great buys now.
Microsoft (NASDAQ: MSFT) is investing heavily in AI, building massive data centers for its Azure cloud computing platform to power AI workloads. Instead of developing its own generative AI model, Microsoft hosts developers’ products on its platform, notably partnering with OpenAI. This strategy is driving significant growth for Azure, with revenue increasing 39% year over year in fiscal Q2 2026 (ending Dec. 31). Azure is poised for substantial growth throughout the AI buildout, offering sustainable long-term revenue as clients become integrated into its infrastructure. Despite recent successes, Microsoft’s stock is trading approximately 25% below its all-time high, presenting a compelling buying opportunity for long-term investors.
Nvidia (NASDAQ: NVDA) is also experiencing market fluctuations, with its stock down about 11% from its peak. However, its valuation appears depressed. At 21.6 times forward earnings, Nvidia is trading slightly cheaper than the broader market, as measured by the S&P 500, which trades at approximately 21.7 times forward earnings. Given the anticipated growth from the AI spending spree over the next five years, Nvidia presents a strong investment case.
While Nvidia is widely recognized for AI computing, Broadcom (NASDAQ: AVGO) is emerging as a significant player. Nvidia offers broad-purpose GPUs suitable for various workloads, whereas Broadcom is developing custom AI chips tailored for specific end-users. These custom chips can offer superior performance at a lower cost for certain applications, though they lack the flexibility to completely replace GPUs. This indicates ample room for multiple leaders in the AI computing sector.
The AI revolution is transforming industries, and companies like Applied Materials are crucial in developing the next generation of memory for these advanced systems. Their partnerships with Micron and SK Hynix highlight the collaborative effort required to meet the escalating demands of AI development.
Fonte: Yahoo Finance
