The tech industry is booming after macroeconomic headwinds triggered a marketwide sell-off in 2022. Advances in different areas of tech have made Wall Street bullish, with many stocks enjoying healthy recoveries since Jan. 1. 

Artificial intelligence (AI) has become a particularly attractive growth sector, with the market projected to expand at a compound annual growth rate of 37% through 2030. Meanwhile, many of tech's biggest companies are rushing to join the industry as they strive to benefit from its development. Advanced Micro Devices (AMD 2.26%) and Amazon (AMZN 1.16%) are two compelling options, with both investing heavily in their AI offerings. 

It's still relatively early days for AI, suggesting it likely won't require tens of thousands of dollars to significantly profit from the market's long-term growth. So, do you have $5,000 to invest? If so, here are two growth stocks that make exceptionally smart buys this year.

1. Advanced Micro Devices

The biggest name in AI chips is currently Nvidia, which boasts a market share between 80% and 95%. The company's leading position in graphics processing units (GPUs) gave it a head start in the industry. However, AMD made promising strides with its chips this year and could soon match Nvidia's offerings and grant investors substantial gains over the long term. 

In June, AMD unveiled its most powerful GPU to date, the MI300X, which is meant to compete directly with Nvidia's hardware. It remains to be seen which clients will sign on to use the AI GPU. However, a recent study by software firm MosaicML indicates AMD isn't far behind Nvidia.

MosaicML tested both companies' last-generation GPUs and found AMD's chips offered about 80% of the performance of Nvidia's. If the MI300X takes the leap the company has promised, AMD could steal considerable market share from Nvidia --- with the right pricing. 

Additionally, AMD has massive support from Nvidia's clients and other companies, which could play in its favor. Countless tech companies are rooting for AMD to succeed as they hope the increased competition will bring down the cost of AI chips. This indicates the company won't have a problem building up its list of clients. 

As far as growth stocks go, AMD is one of the most attractive options. Its revenue rose 265% over the last five years, with operating income up 180%. Meanwhile, the same period has seen the company's stock soar 572%.

AMD's chip business grants it solid positions across different areas of tech, and its AI potential is one of the best reasons to invest in this growth stock. 

2. Amazon

As the world's biggest e-commerce and cloud company, Amazon has lucrative positions in two crucial markets. Its potent business has seen its stock rise 43% since 2018, despite an economically challenging 2022, which led to steep declines in its retail segment. Meanwhile, a growing position in AI could see its stock soar even more over the next five years. 

Like AMD, Amazon has been playing catch-up in AI this year. Its biggest competitor Microsoft entered the market with the advantage of being the primary investor to ChatGPT developer OpenAI, which allowed it to procure exclusive licenses on some of the start-up's AI models.

However, Amazon's leading cloud market share with its Amazon Web Services (AWS) could give it an edge as it expands its AI offerings.

Amazon is steadily adding to its library of generative AI tools on AWS, recently introducing the language model-enabled service Bedrock this past June. Bedrock allows AWS users to build chatbots and image-generation services, while also being capable of producing full ad campaigns based on a product's description.

Additionally, AWS has added CodeWhisperer, which will make software development easier by generating code. 

Moreover, CEO Andy Jassy revealed earlier this month that Amazon is taking on Nvidia by producing its own AI hardware. The company has so far developed two chips it calls Inferentia and Trainum, which Jassy says will have "much better price-performance than you'll find anywhere else."

The chip initiative makes Amazon one of the first cloud companies to expand into the hardware side of AI. The company could have a massive advantage in the market by having complete control of its software and hardware, which may see it eventually trounce competitors like Microsoft and Alphabet. 

Amazon's revenue gained 121% since 2018 and the stock has climbed 55% year to date. It's a growth stock worth considering this year before its AI business further boosts its share price.