2 Artificial Intelligence (AI) actions that could make you a millionaire

Virtually every investor wants to become a millionaire from investing in stocks. However, it is not easy. First of all, becoming a millionaire doesn’t happen overnight (unless you start with close to $1 million). It takes years to identify and buy strong companies at good prices.

While one or two stocks may not make you a millionaire by themselves, picking the right ones can significantly speed up your timeline. If you’re looking for a stock that can beat the market, then I have a couple that can easily accomplish that feat and are worth buying right now.

Taiwan Semiconductor

Taiwan Semiconductor (TSM -0.28%) might be the most important technology company on the planet. Its industry-leading semiconductor foundry makes chips for almost every other big tech company out there: Nvidia, Apple, Alphabet, AMDand many others. Without its technology, our world would not function the same.

The Taiwanese company was caught in this recent selloff and is down almost 20% from its 2024 highs. However, given how vital TSMC is to almost all tech companies, this makes no sense, especially after the quarter it most recently reported.

In the second quarter, Taiwan Semi’s revenue rose 33% year-over-year in US dollars, and it provided guidance for 32% growth for the third quarter. It also has the added catalyst of a new generation of chips that will be released in late 2025 and are expected to offer far greater energy efficiency than current-generation chips.

Even with those fantastic investment points, TSMC stock trades at a pretty attractive forward earnings of 24 times. If you believe that artificial intelligence (AI) will continue to grow and other high technologies will thrive in the future, TSMC is a great stock to buy right now.

Alphabet

Alphabet (GOOG 0.48%) (GOOGL 0.52%) is another top pick in the AI ​​investment space. Although better known for its Google platform, Alphabet is investing heavily in many businesses that will help the proliferation of AI technologies.

First, Alphabet’s large language model, Gemini, has overcome some initial blunders and emerged as a top option for building generative AI models. This technology has also been incorporated into the Google search engine and has made its way to Android phones. As Alphabet continues to improve and refine this model, it will become a great tool for AI developers to have in their toolkit.

Alphabet is also investing heavily in cloud computing. Cloud computing is a vital piece of infrastructure for AI, as few companies have the computing power to train AI models. So it rents out some of Alphabet’s computing power in hundreds of data centers scattered around the globe. This has been an excellent growth driver for Alphabet, and the division produced 29% growth in the second quarter.

But his momentum could be starting. About 60% of funded generative AI start-ups and nearly 90% of generative AI unicorns (private companies worth at least $1 billion) are Google Cloud customers. As these companies grow, their usage will increase, which will translate into higher revenue for Alphabet. In addition, Apple’s AI model, Apple Intelligence, was trained on Alphabet’s Tensor Processing Unit (TPU), which delivers higher performance than Nvidia GPUs when the workload is properly configured.

GOOGL PE Ratio data (Before) by YCharts.

This is a great company trading at a pretty cheap 20.7 times earnings. Given that S&P 500 trading at 22.2 times forward earnings, Alphabet is now a cheaper stock than the average. Few investors would place Alphabet in a worse-than-average position, so buying Alphabet stock right now amid the market selloff is a brilliant move.