Investors seeking to capitalize on the rapidly expanding market should pay close attention to AI stocks with high potential. The imminent possibility of a possible deal between Amazon (NASDAQ:AMZN) and AMD (NASDAQ:AMD) sparks immense interest.

It is the ideal time to consider AI stocks to buy before the Amazon-AMD deal.

Identifying the top AI stocks to watch becomes paramount as the AI landscape evolves. These stocks possess the potential to deliver substantial returns as the industry continues to advance.

Investors looking to stay ahead of the curve should consider AI stocks with an intent to buy before the Amazon-AMD deal materializes, as such major agreements often positively impact the involved companies.

Amazon Web Services, the leading provider of cloud computing services globally, is contemplating using advanced artificial intelligence chips developed by AMD, as disclosed by an AWS executive in a conversation with Reuters. This decision, however, is not final.

Securing positions in AI stocks before major deals can give investors a unique advantage. The anticipation of significant partnerships and collaborations can increase stock prices. Hence, the situation is tailor made for astute investors.

Investors can position themselves for success in the ever-growing AI market by being proactive, unique, and staying informed.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA), the graphics specialist, continues to revolutionize gaming with AI, expanding its growth opportunity beyond data centers.

The tech giant recently showcased its groundbreaking technology, the Avatar Cloud Engine (ACE), at the Computex conference. This cutting-edge solution has generated excitement among game developers.

Leveraging its extensive community of developers, Nvidia has established itself as the benchmark in the GPU hardware and software applications industry.

Furthermore, gaming generated over $9 billion in revenue for Nvidia. As such, it is a big revenue driver for the company. With over 1.75 billion PC gamers worldwide, the potential for growth is high.

In addition, Nvidia’s AI advancements in gaming, including the recent ACE technology, can change how games are made and enhance the realism of in-game characters. ACE uses natural language models to add dynamic and less scripted dialogue for non-playable characters (NPCs).

However, the advancements don’t end there. With the arrival of innovative AI solutions like the Avatar Cloud Engine (ACE), Nvidia is poised to take gaming and graphics technology to even greater heights in the future.

The best is yet to come as Nvidia continues redefining what is possible in gaming.

Despite Nvidia’s stock overvaluation concerns, a potential near-term recovery in graphics-related revenue and the strong demand for AI chips could accelerate revenue growth.

Advanced Micro Devices (AMD)

AMD (NASDAQ:AMD) is poised for significant opportunities in the AI and gaming market, generating optimism despite competition. With a projected $150 billion total addressable market by 2027, AMD aims to tap into the growing AI sector.

While AMD’s GPUs currently lag behind Nvidia’s in data centers, its position as Nvidia’s primary competitor in the GPU chip market remains strong.

The latest MI300 chips, priced at five times the production cost, are set to offer substantial performance improvements and position AMD as a contender in the AI chip market. AMD boasts the best price-to-quality ratio in gaming graphics cards, while Nvidia leads in professional solutions.

AMD has gained notable market share in the data center CPU market, displacing Intel (NASDAQ:INTC).

Supercomputers widely use their EPYC server processors, and the company expects that the fourth-generation EPYC processors will drive double-digit growth in the data center segment.

Venturing into data center accelerators, AMD’s Instinct MI300 combines GPU and CPU capabilities, rivaling Nvidia’s A100 and H100 GPUs. The company’s ROCm open software platform complements its hardware, enabling developers to optimize AI and machine learning workloads.

Financially, analysts have revised growth forecasts for AMD’s Data Center segment and gaming business, projecting higher growth rates. Despite the competition, AMD’s stable revenue recovery in the gaming segment and competitive price-to-performance ratio makes it an appealing long-term investment choice.

However, monitoring competitors’ developments is crucial as they risk AMD’s prospects. For now, holding AMD for the long-term future appears favorable, considering its potential in the AI and gaming market. With or without the Amazon deal, it earns its place in an AI-focused portfolio.

Opendoor Technologies (OPEN)

Opendoor Technologies (NASDAQ:OPEN) is on everyone’s radar once again. The recent surge in stock price is because of highly encouraging statistics from the U.S. housing market.

Government data reveals a remarkable 22% month-over-month rise in housing starts, reaching 1.63 million at an annual rate in May.

Opendoor, a real estate disruptor that uses technology and AI to enhance different aspects of the industry, faced challenges over the past year because of a weakened housing market.

Despite being well-suited for millennials and a tech-savvy world, the slow economy hindered the company’s growth. However, the situation is now changing, and investors are taking notice.

Investors welcomed this news as a positive development, particularly for companies like Opendoor. The increased number of housing starts translates to a higher volume of homes available for sale, benefiting Opendoor and its peers in the real estate industry. As an innovative next-generation real estate company, Opendoor relies on volume.

While Opendoor has not provided specific estimates on how the surge in housing starts may affect its business, the overall market sentiment remains unequivocally positive.

It remains to be seen whether this impressive growth will be sustained. Additionally, it is uncertain if Opendoor can effectively capitalize on the upward trend in the housing market.

In summary, Opendoor Technologies stands to benefit from the unexpectedly high leap in housing starts. With a focus on leveraging technology, Opendoor can exploit the expanding housing market. This solidifies its position among high-potential AI stocks to watch in the industry.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.