Artificial intelligence (AI) stocks were on fire on the market in 2023, especially chipmakers Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD), which saw their shares jump significantly on the back of the booming demand for AI chips. These two chip stocks could have another solid year in 2024 thanks to AI.

Investment bank UBS predicts that sales of AI-focused graphics processing units (GPUs) and chips could rise 60% annually between 2022 and 2027. It adds that the AI chip market could generate annual revenue of a whopping $165 billion in 2027 as compared to just under $16 billion in 2022. The investment banking firm also adds that semiconductor companies could witness a 25% jump in revenue and a 50%-plus jump in operating profit in 2024.

So, shares of Nvidia and AMD could continue to head higher this year. But if you were to choose one of these two stocks to capitalize on the AI boom, which one should you be buying? Let's find out.

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Source Fool.com