The past couple of years have been absolutely phenomenal for technology stocks, which is evident from the 90% gains clocked by the Nasdaq-100 Technology Sector index during this period, and artificial intelligence (AI) is one of the main reasons behind this outstanding surge.
After all, AI has created significant demand for hardware such as semiconductors and server components, while also creating the need for software that could be deployed in real-world situations to help users boost their productivity and improve efficiency. More specifically, the demand for AI hardware is forecast to increase at an annual rate of 31% through 2035, generating $624 billion in annual revenue.
Meanwhile, the AI software market is expected to clock a compound annual growth rate of almost 34% over the next five years. That’s the reason why we will take a closer look at the AI-related prospects of Taiwan Semiconductor Manufacturing (NYSE: TSM), popularly known as TSMC, and (NYSE: TWLO), two companies that can help investors take advantage of the growing demand for both AI hardware and software.
Source Fool.com