Keith Noonan and Jennifer Saibil, The Motley Fool
6 min read
In This Article:
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Micron Technology is playing an important role in the rise of AI technologies.
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MercadoLibre operates in an underpenetrated region that's growing rapidly.
If you had invested $1,000 in Amazon stock 10 years ago, that investment position would now be worth nearly $10,000. Meanwhile, a $1,000 investment in Nvidia a decade ago would now be worth more than $265,000.
While investing in stocks typically comes with a much higher level of risk compared to bonds and other fixed-income investments, the potential for explosive returns is also much higher. With that in mind, read on to see why two Motley Fool contributors identified these two companies as top investment candidates to put $1,000 into right now.
Keith Noonan (Micron Technology): Artificial intelligence (AI) is taking the world by storm, and it seems virtually certain that its transformative impacts are still in the very stages of unfolding. Along with software advances from a wide variety of players, it's likely that high-powered hardware from a smaller group of providers will continue to play a central role in pushing the technology forward.
Nvidia will likely continue to lead the high end of the graphics processing unit (GPU) technologies that help power advanced training and inference applications for AI, but it also looks like Advanced Micro Devices could be making some significant inroads in the space. While both of these processing specialists could be worth betting on, I think that investors should also take a close look at one of the key components providers for their most advanced hardware -- Micron Technology (NASDAQ: MU).
Micron is a designer and manufacturer of memory chips and storage solutions that's playing an important role in the AI revolution. While the company's business has historically revolved mostly around the consumer market, that's changed rapidly -- and memory chips used in GPUs, accelerators, and other hardware for data centers are now central to its growth story. The company's high-bandwidth memory (HBM) solutions are used by both Nvidia and AMD for advanced AI processors, and the demand outlook for these technologies is very promising.
In addition to being a pick-and-shovel play that should allow investors to benefit from rising demand for GPUs from Nvidia, AMD, and other players in the AI processors space, Micron could be poised to benefit from geopolitical trends. Due to rising tensions between the U.S. and China, leading domestic tech companies will likely be less inclined to rely on memory chips and storage solutions from Chinese providers.
