Stock market

Forget Nvidia and Microsoft shares! A cheap stock to consider buying for the AI ​​boom

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Share prices in the US tech sector have rallied over the past year. demand of Nvidia And Microsoft For example, shares have risen as their groundbreaking work in the field of artificial intelligence (AI) has delivered blockbuster results.

It is clear that the AI ​​market has room for significant growth. And as an investor I’m looking for ways to capitalize on that and make life-changing financial returns.

My concern is that some of them Nasdaq-listed giants look quite expensive despite this bright outlook. Shares of Nvidia, for example, trade at an impressive forward price-to-earnings (P/E) ratio of 73.2 times. And the firm’s price-to-book (P/B) ratio increases by 50 times!

Early days

Buying these tech stars at these prices is especially unappealing because we’re so early in the AI ​​revolution. While we can all make a good guess, it’s hard to predict at this stage which of these companies will succeed.

Sophie Lund-Yates, Equity Analyst Hargreaves Lansdowne, pointed out last week. Praising Microsoft’s strong first-quarter results, he said: “While Microsoft is the top dog, there are other companies nipping at its heels. No one is close enough to take the maximum bite yet, but never say never. The market is still in the very early stages of the AI ​​race in the grand scheme of things, and it’s important to remember that defining an overall winner is a very difficult question.

Going to sleep.

Given this fact, buying an exchange-traded fund (ETF) that holds a variety of AI stocks can be a good idea to help investors hedge their bets.

But as I say, many of these tech stocks are looking expensive. So I’m thinking of other, more cost-effective ways to invest in the AI ​​boom. One way to do this is to buy gold stocks.

Gold is an important material in the field of electronics. And as chips begin to be built to power the AI ​​boom, demand for the precious commodity is also growing.

According to the World Gold Council, demand for gold from tech companies rose 10 percent during the first quarter.Driven by the AI ​​boom in the electronics sector

A cheap stock

But there are many gold stocks. London Stock Exchange Investors can choose. FTSE 100– Listed gold and silver producers Fresnello is the biggest. I like the look too. the aim– Cited Anglo-Asian Mining And Greatland Gold.

But CentamineOf (LSE:CEY) gold stock I would buy if I had spare cash to invest. gave FTSE 250 The company owns the low-cost Soukari mine in Egypt where it is investing heavily to increase production. It is set to produce 500,000 ounces of gold annually from Sukari.

The gold miner also has several other African exploration assets on its books that could help it capitalize on the AI ​​boom.

I also like Centamin shares because of their affordability. They trade at a forward P/E ratio of 9.6 times and yield a healthy 3.1% dividend.

Metal mining is an unpredictable business. If problems arise, costs can increase and revenue can sink. But I think these factors are baked into Centamin’s cheap share price. I think this might be a great way to look at taking advantage of the AI ​​revolution.


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