### Invest $400 into These Three AI Stocks for Future Gains

Artificial intelligence (AI) is not only shaping current technological advancements but is also propelling the bull market. With AI-related expenditures forecasted to increase between 40% and 55% annually for the next three years, the sector presents a lucrative opportunity for investors. Here are three AI stocks worth considering with an investment of $400.

#### Amazon (AMZN)

Amazon, the largest public cloud platform with its Amazon Web Services (AWS), is positioned to significantly benefit from the growing demand for AI infrastructure. The expansion of data-center needs for AI development is staggering, with costs predicted to surge up to $25 billion in the next five years. Amazon is capitalizing on this trend by investing heavily, with $60 billion allocated to support AI workloads this year alone. This strategic spending secures Amazon's advantage, offering growth potential as businesses increasingly rely on hyperscale cloud providers. AWS showcased a 19% sales increase in Q2, an acceleration compared to last year's 12% rise. Trading at around $195 per share, Amazon's stock prices are appealing given the company's robust growth in sales and free cash flow.

#### Taiwan Semiconductor Manufacturing (TSMC)

Taiwan Semiconductor Manufacturing (TSMC) stands as the world's dominant chipmaker, commanding 60% of global spending on chip manufacturing. TSMC's leading position enables it to continuously innovate, attracting high-spending customers like Nvidia. As the demand for advanced AI chips rises, TSMC's services are increasingly sought after, promising strong profit margins. Despite this potential, the growth might not be fully reflected in its stock price, which trades at 22 times the expected earnings for 2025. With expected average annual earnings growth above 20% over the next five years, TSMC's current share price of around $180 offers substantial investment value.

#### UiPath (PATH)

Specializing in robotic process automation (RPA), UiPath leads the market by replacing repetitive tasks with software, thereby enhancing business efficiency. Its Business Automation Platform uses AI to discover and optimize workflow efficiencies, often expanding its footprint within its customer base. Despite recent slowdowns, with a total revenue growth of just 10% year over year, UiPath's prospects remain strong. The company’s dollar-based net retention rate was 115% in Q2, indicating robust customer loyalty and increased spending. With the RPA market expected to grow 40% annually through 2030, the stock, priced at approximately $12.60 per share, presents a promising investment.

Investors looking to tap into the growing AI sector should consider these three companies. Each offers unique advantages and growth potential amid the expanding AI boom.