2 Top AI Stocks to Buy in December

It has been three years since the launch of OpenAI's ChatGPT ushered in the age of generative artificial intelligence (AI). But the burgeoning industry is still very uncertain. It could potentially be as transformational as the internet, a giant bubble that could pop at any moment, or both. Investors must balance the fear of missing out (FOMO) with the very real risk of being left holding the bag if the market changes direction.

Now might be the time to pivot away from pure plays like Nvidia, which earns around 90% of its revenue from its data center segment, and gravitate toward more diversified companies that can benefit from industry growth without being overexposed. Let's explore why Micron Technology (NASDAQ: MU) and Taiwan Semiconductor Manufacturing (NYSE: TSM) could make compelling picks in December and beyond.

With shares up by 180% year to date, Micron Technology is finally getting the market's attention. Investors are realizing that generative AI workloads could dramatically boost demand for its computer memory hardware while boosting margins. The company's reasonable valuation and diversified business model are also long-term tailwinds for the stock.

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Source Fool.com