Beyond Semiconductor Stocks: 2 Under-the-Radar Ways to Cash In on the AI Megatrend
The artificial intelligence (AI) revolution has been a major boon for the semiconductor industry. AI applications require significant computing power, and that's driving an estimated $50 billion in incremental demand for semiconductors optimized for AI this year, up from next to nothing two years ago. According to forecasts compiled by Deloitte, by 2027, demand for AI chips could more than double from here to $110 billion, or potentially grow significantly faster to $400 billion.
AI's nearly insatiable demand for chips has driven up semiconductor stocks. An index tracking the sector surged 65% last year. Because of that, most semiconductor companies trade at rich valuations.
However, the current focus of the AI frenzy on semiconductor businesses has many investors overlooking two other sectors poised for explosive AI-powered growth: data centers and renewable energy. Here's how to cash in on these under-the-radar AI plays.
Source Fool.com
