The 3 Smartest AI Stocks to Buy for $5K Right Now

artificial intelligence (it) history shows no signs of cooling, creating great opportunities for buying the best AI stocks.

First, according to Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030.

Two, companies like Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) have reportedly earmarked $40 billion for investment in AI-related projects and data centers worldwide. Alphabet (NASDAQ:GOOGNASDAQ:GOOGLE) says it will spend over $100 billion on AI development. Also, many of them are spending billions of dollars on artificial intelligence startups to avoid falling behind the competition.

Further, with increasing demand for AI, data centers are seeing significant demand.

There are projections that demand for data centers will double by 2030, thanks in part to artificial intelligence. Further, Goldman Sachs is positive on the industry. It estimates about 47 gigawatts (GW) additional power generation capacity will be needed to accommodate the growth.

All of this demand is creating incredible opportunities for AI stocks to buy if you have $5,000 to invest.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) is the pioneering force behind AI. It’s also one of the top AI stocks to buy for a long time.

Currently trading at just $124 after a 10:1 split, it’s a steal. And, with demand for AI set to explode, NVDA could rise well above $1,000 a share again this time next year.

Additionally, Susquehanna analysts say NVDA could test $160 a share. Rosenblatt analysts say NVDA could rise to $200 with a buy rating. All this is due to the high demand for its AI chips.

Earnings have been and should continue to be strong. In its most recent quarter, NVDA’s first-quarter revenue was up 262% year-over-year (JOY) to 26.04 billion dollars.

That was well ahead of estimates for $24.65 billion. Adjusted earnings per share rose 461% to $6.12, beating estimates for $5.50. Adjusted gross margins of 78.9% were also above expectations of 77.2%. Even the instructions were expected to be strong.

For the second quarter, NVDA’s projected revenue of $28 billion is above expectations of $26.6 billion. Adjusted gross margins could reach around 75.5%, which is also above estimates for 75.2%.

Digital Asset Trust (DLR)

The last time I highlighted an opportunity in Digital Realty trust (NYSE:DLR), traded at around $141. Shortly after reaching a high of $151.77, it has now returned to $151.75, where it is still a strong buy.

First, yielding 3.28%, the real estate investment trust owns data centers around the world. All of these are seeing significant demand with the AI ​​boom. Also, according to Goldman Sachs, data center demand is expected to grow at a CAGR of 15% between now and 2030. All could send the Digital Asset Trust to higher levels.

Second, analysts at BMO Capital just upgraded DLR to Outperform.

As noted by the firm, “We believe DLR remains well-positioned as an AI play, particularly within REITs, with scope for further multiple expansion. Net data center absorption continues to set records (North American leasing of ~4 GW in 2023 and 5.5-6 GW expected in 2024), supported by continued investment from hyper-scalers as they develop their AI capabilities,” as quoted by Seeking Alpha.

ROBO Global Artificial Intelligence ETF (THNQ)

Or, if you prefer to diversify at a low cost of around $45 per share, there is ROBO Global Artificial Intelligence ETF (NYSEARCA:THNQ), which invests in companies leading the AI ​​revolution.

THNQ includes companies that develop the technology and infrastructure that enable AI. They include computing, data and cloud services, as well as companies applying AI in various verticals, from business processes to e-commerce and healthcare.

With an expense ratio of 0.75%, the THNQ ETF provides exposure to Nvidia, Microsoft, Palo Alto Networks (NASDAQ:Panwa), Cloudflare (NYSE:net), Analog devices (NASDAQ:DO YOU KNOW), Fast 7 (NASDAQ:RPD) and 52 other properties.

Over the past two years, we’ve seen the ETF rally from around $24 to $45.16. Going forward, we hope to see it nearly double again. It’s all thanks to the history of artificial intelligence, which shows no signs of slowing down anytime soon.

At the date of publication, Ian Cooper did not hold (directly or indirectly) any position in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publication Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advice since 1999.