Split Your $5,000 Investment Across Three AI Stocks
A recent trend in artificial intelligence (AI) has investors scrambling to buy into various AI-related stocks. However, instead of betting on one stock, a $5,000 investment can be split across three companies: Amazon, Taiwan Semiconductor Manufacturing, and Applied Digital.
Amazon's cloud computing segment, Amazon Web Services (AWS), grew 37% year over year in the second quarter, reaching $42.2 billion in revenue. This growth was accompanied by a 64% increase in operating income to $16.6 billion. Although AWS accounts for only about one-fifth of Amazon's revenue, its steady growth and profitability make it an attractive investment.
Taiwan Semiconductor Manufacturing is another key player in the AI build-out, manufacturing advanced processors for most leading designers. With a 53% increase in August revenue to NT$514.8 billion (about $16 billion), the company has seen a significant spike in demand. Its gross margin of 67.7% in the second quarter also indicates lucrative work.
Applied Digital, on the other hand, is a smaller slice of the investment, as its business is less proven. However, with signed leases totaling about $36 billion in future rent, the company has significant potential for growth. Although it has reported a net loss of $249.2 million in fiscal 2026, the take-or-pay agreements and contracted revenue make it an attractive option.