2023 was been an impressive year for the U.S. stock market, with the S 500 and the Nasdaq Composite posting returns of 24.5% and 43.4%, respectively. Increasing investor optimism on the back of easing inflation and a stronger-than-expected economy in late 2023 played a major role in this rally. However, the rising adoption of artificial intelligence (AI) across all walks of life has proved to be the most prominent growth driver for the stock market in 2023.

According to Next Move Strategy Consulting, the global AI market is estimated to grow from $207.9 billion in 2023 to nearly $1.8 trillion in 2030. Not surprisingly, many companies are racing to capitalize on this opportunity. Particularly noteworthy is chip giant Advanced Micro Devices (NASDAQ: AMD), which is working to make its presence felt in the ever-expanding AI space.

Here's why AMD can prove to be the ultimate AI growth stock to buy with $500, assuming this money is not needed for paying bills or contingencies.

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Source Fool.com