Artificial intelligence (AI) technology is beginning to expand beyond chatbots. What’s coming next is agentic AI – software that can independently perform complex tasks on your behalf with only minimal instructions. In the coding world, AI agents are already widely used, and the same kind of automation is likely coming to other parts of the economy.
These five companies are well-positioned to capitalize on this trend, and investors should consider loading up on their shares before agentic AI hits the mainstream.
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Coding is only a small subset of the software economy. However, the world does not have enough AI-enabled processing power online to meet current demand. If AI agents are going to make their way into all parts of the economy, we need more. This means continued growth for AI computing hardware companies. There are two of my favorite investments in this space Nvidia (NASDAQ: NVDA ) and Broadcom (NASDAQ: AVGO ).
Nvidia is perhaps the most obvious choice, as its graphics processing units (GPUs) have been the primary computing units deployed for AI workloads for years. GPUs are incredibly flexible and can handle a wide variety of parallel-processing tasks, making them an excellent contender for continuous deployment as an extension of agentic AI.
Broadcom is taking a different approach in the AI chip space – it partners with its hyperscalar clients to develop custom chips that are built to handle the exact computing workloads they’re used for. Broadcom’s application-specific integrated circuits (ASICs) may not be flexible, but they excel at the tasks they’re designed for, and perform them at low costs.
Both Nvidia and Broadcom are expected to post big revenue growth over the next few years. I believe they will be one of the best performing investments over the next five years.
Many companies don’t have the capital or expertise to build high-end data centers to meet their internal AI usage needs. So, they rent that computing capacity from the cloud. The big three are cloud computing providers Amazon (NASDAQ: AMZN ) Web Services (AWS), Microsoft (NASDAQ: MSFT ) Azure, and Alphabetwho (NASDAQ: GOOG) (NASDAQ: GOOGL ) Google Cloud. All three are seeing great success now, and are likely to come their way as agentic AI becomes more mainstream.
