You might be tired of hearing about artificial intelligence (AI) after years of buzz surrounding the technology's revolutionary potential. However, it likely has a far reach and the ability to alter and enhance a vast variety of industries, with its participants likely to see substantial gains over the long term.

The launch of OpenAI's ChatGPT last November stunned the tech world with its ability to produce human-like dialogue and kicked off a race in which countless companies have pivoted to AI development. As a result, market leaders such as Nvidia (NVDA 4.76%) and C3.ai have watched their stocks skyrocket 80% and 100%, respectively, since Jan. 1, almost entirely on the back of the AI boom.

Despite different forms of AI being utilized and developed for years, the technology still has a long way to go, as do the industries' stocks. Here's why now is an excellent time to consider investing in artificial intelligence stocks.

Artificial intelligence can enhance nearly any industry

According to Grand View Research, the AI market was valued at roughly $137 billion in 2022 and is projected to expand at a compound annual growth rate of 37.3% through 2030. AI adoption is forecast to be widespread, with industries as diverse as cloud computing, automotive, e-commerce, healthcare, and manufacturing increasing their utilization of the technology.

Big-name companies like Amazon, Microsoft, and Tesla have all implemented AI in their daily operations. For example, Amazon uses AI in its e-commerce business to recommend products to consumers, track shopping trends, and run intelligent robots in its warehouses. As the biggest investor in OpenAI, Microsoft is using the start-up's software, like ChatGPT, to enhance its cloud service Azure, search engine Bing, and its Office productivity programs. Meanwhile, AI plays a crucial role in Tesla's self-driving cars by gathering real-time data from vehicles' cameras.

However, these are not actually the best companies to invest in AI. As the technology is virtually limitless, choosing which AI business to invest in now is like trying to decide what will be the most successful website in the early 2000s. Chances are, the most prominent AI company still has yet to emerge. As a result, the smart move is to invest in the companies producing the chips and hardware necessary to run and develop AI software.

What are the best AI stocks?

Nvidia and Advanced Micro Devices (AMD 2.83%) are arguably the biggest companies in AI, thanks to their powerful graphics processing units (GPUs) and central processing units (CPUs). These computing components are essential to run AI workloads.

In fact, Nvidia is the primary supplier of GPUs to ChatGPT, with research from TrendForce showing the AI program required about 20,000 units in 2020. That figure is projected to increase to 30,000 GPUs as ChatGPT commercializes. The partnership has made artificial intelligence Nvidia's No. 1 business, with its data center revenue rising 41% in fiscal 2022, mainly thanks to the flourishing AI market.

Meanwhile, last year, AMD acquired Xilinx, a company producing specialized processors for the automotive, industrial, and artificial intelligence markets. The purchase has proven immensely profitable for AMD, with growth in its embedded segment driven almost entirely by Xilinx in 2022. The business reported a revenue increase of over 1,700% to $4.6 billion.

The choice between whether to invest in Nvidia or AMD is dependent on which is currently the better value. Nvidia's staggering share-price rise this year has made it a little too expensive, with its forward price-to-earnings ratio at 59, compared to AMD's 30. Nvidia's recent run-up likely indicates that its near-term growth in AI has already been baked into its stock, at least for the next few years.

Moreover, AMD's forward price/earnings-to-growth (PEG) ratio of 0.11, compared to Nvidia's 0.3, also indicates AMD is currently undervalued given its potential earnings.

Artificial intelligence will likely play a pivotal role in future technology across multiple industries, making its related stocks worth investing in right now. And AMD is the best value stock to back the booming sector.