2 Super Semiconductor Stocks to Buy and Hold Through the Next Decade
Artificial intelligence (AI) looks poised to be the most important technological advancement the world has seen to date, and the data center build-out to support it still appears to be in the early innings. Two of the semiconductor stocks best positioned to ride this trend over the next decade are Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) . While the amount of money spent on AI infrastructure already seems staggering, WisdomTree recently pointed out that the cumulative spending-to-GDP (gross domestic product) ratio is actually significantly less than past historical transformation booms, including the railroad boom of the 1860s, the electrification boom of the 1920s, and the internet boom of the late 1990s. I'd also add that there are a couple of other factors working in AI's favor. One is that we have a much more interconnected global economy today, so I think the U.S. GDP used in these calculations could actually be replaced with global GDP today. Unlike past technological advancements, AI also has more potential applications and isn't bound by individual consumption. Finally, the technological curve has steepened, meaning new technological advancements are happening much quicker than in the past. It wouldn't be surprising, for example, for the AI build-out to bleed into other big technological advancements like robotics, space, and quantum computing . Continue reading