As the AI wave washes over us, the world of finance is feeling the electricity. Think of businesses like Nvidia and C3.ai – their growth rocketed in response to the emergence of OpenAI’s ChatGPT. It’s becoming clear that AI is not a trend, but a global change that is here to stay.

The AI industry, which was worth about $137 billion in 2022, is forecasted to expand by an astounding 37.3% annually through 2030, as per Grand View Research. The promise of AI is wide-ranging, having the capacity to transform sectors from healthcare to automotive. Giants like Amazon, Microsoft, and Tesla are already leveraging this powerful tool.

The million-dollar question, of course, is where the smart money in AI should go. Just like the dot-com boom of the early 2000s, the future giants of AI may still be unknown. Perhaps the savvy move now is to back those who make the building blocks of AI technology.

In this respect, Nvidia and Advanced Micro Devices (AMD) are front-runners. Nvidia, the principal GPU supplier to ChatGPT, has seen a surge in its data centre revenue, thanks largely to the AI boom. Meanwhile, AMD, bolstered by its acquisition of Xilinx, is expanding its footprint in the automotive, industrial, and AI markets.

Given the recent price surge in Nvidia shares, AMD currently appears to be a more value-oriented proposition. AMD’s forward PEG ratio suggests that the market may be undervaluing its potential growth.

So, is it time to jump on the AI bandwagon? With the transformative potential of AI and promising growth trajectory of companies like AMD, it certainly seems like an opportunity worth exploring. The key, as always, is to make informed decisions, keep an open mind, and speak to an advisor to stay updated with the fast-paced world of AI. After all, who knows what incredible innovations tomorrow might bring?