Artificial intelligence (AI) stocks, including Taiwan Semiconductor (NYSE:TSM), Super Micro Computer (NASDAQ:SMCI), C3.ai (NYSE:AI), and SoundHound AI (NASDAQ:SOUN), gained about 7%, 2%, 4%, and 14%, respectively, yesterday. The upside comes after Arm Holdings (NASDAQ:ARM) reported AI-driven strong Q3 earnings, which helped bolster optimism about sustained growth in the AI sector.
Furthermore, Arm lifted its outlook for the fiscal fourth quarter, citing expectations of higher licensing revenue from AI devices. Additionally, it announced strategic initiatives to accelerate the adoption of AI solutions within its Data Center, Automotive, and Internet of Things (IoT) product segments.
Expanding AI Market
According to a Statista report, the AI market is expected to grow at a compound annual growth rate of 15.83% in the next six years. The rising adoption of AI technologies across diverse industries, advancements in AI algorithms and infrastructure, and increased investment in AI research and development are expected to aid the market’s expansion going forward.
What are the Best AI Stocks?
Among the above-mentioned five AI stocks, both TSM and SOUN have a Strong Buy consensus rating, ARM and SMCI have a Moderate Buy, while C3.ai stock has a Hold rating. Among these stocks, TSM is the only one with an Outperform Smart Score of nine, which indicates its potential to beat market averages.
