You can broaden your exposure to the AI and semiconductor space by adding stocks of companies with high returns on invested capital
Nvidia and Intel both made a list of semiconductor manufacturers with the highest returns on invested capital.
MARKETWATCH/ISTOCKPHOTO
How should you play a long-term trend in the stock market? Investors have made an early bet on years of deployment of artificial intelligence across the corporate world by focusing on data-center infrastructure. This year the big bet has been on Nvidia Corp. — the stock has returned 189% this year, with dividends reinvested.
On June 15 we screened semiconductors to identify 16 industry players expected to increase sales at a compound annual growth rate of at least 15% through 2025. Nvidia NVDA ranked fourth, but it is now an expensive stock. Below is a screen of 60 makers of computer chips and related hardware showing which companies have made the most efficient use of invested capital over the past five years. This approach may be a starting point for your own research into stocks that can broaden your exposure to the AI build-out.
Continued Article: https://www.marketwatch.com/story/another-way-to-play-ai-stocks-these-have-been-the-most-efficient-chip-makers-aa6b50ba?mod=home-page
