Three AI Semiconductors and Cloud Plays Positioned for Explosive Growth Before 2036: Where's the Market Potential?

The artificial intelligence revolution continues to reshape investment landscapes. Grand View Research forecasts the AI market will expand at a 31% compound annual growth rate through 2033—a trajectory suggesting certain equities could deliver 10-fold returns by 2036. Beyond household names like Palantir, which surged over 32 times from its 2022 lows, several lesser-known players are quietly building competitive advantages in chip design, cloud infrastructure, and AI-driven software.

Three standout candidates merit attention for investors seeking exposure to this structural trend.

The Chip War: AMD’s Ascending Challenge to Market Leadership

Advanced Micro Devices (NASDAQ: AMD) occupies an intriguing position. While the stock has climbed over 13,000% since 2015 and trails Nvidia in the AI accelerator space, AMD is architecting a pathway to competitive parity. The MI450 accelerator represents management’s bold assertion that performance convergence is achievable.

Beyond accelerators, AMD maintains strongholds in traditional CPU markets, PC gaming, and embedded systems—all benefiting from architectural innovations developed for data center deployments. The company projects 30% long-term revenue growth, with its data center segment (housing AI accelerator products) potentially expanding 60% annually. Market participants have taken notice: AMD shares gained over 70% over the trailing 12 months.

Current valuation appears demanding at a 105 P/E ratio on historical earnings, yet the forward P/E of 53 suggests market participants are pricing in substantial acceleration. This risk-reward dynamic may justify positions for growth-oriented portfolios.

Infrastructure Play: CoreWeave’s AI-First Cloud Advantage

CoreWeave (NASDAQ: CRWV) exemplifies the infrastructure beneficiary narrative. While Amazon’s AWS and Microsoft’s Azure dominate broader cloud computing, CoreWeave carved a specialized niche: a GPU-optimized platform engineered explicitly for AI workloads.

The value proposition is compelling. Rather than maintaining proprietary data centers—a capital-intensive, operationally burdensome undertaking—enterprises increasingly outsource to specialized providers. CoreWeave’s early-mover advantage is evident: first-nine-months 2025 revenue reached $3.6 billion, representing 204% year-over-year expansion.

Growth has not arrived cost-free. Operating expenses surged 263% during the same window, pushing interest expenses to $841 million and generating a $771 million net loss (an improvement from the prior-year $857 million loss). Stock prices have corrected sharply, trading approximately 60% below 52-week highs.

Yet from a valuation lens, the P/S ratio of 7 coupled with triple-digit revenue acceleration creates an asymmetric risk-reward scenario. If CoreWeave successfully navigates the path to profitability, equity appreciation could prove substantial.

Market Disruption: Upstart’s Loan Evaluation Opportunity

Upstart (NASDAQ: UPST) targets an entrenched incumbent. Fair Isaac’s FICO scoring methodology has governed credit assessment since 1989, with minimal evolution despite technological advancement. This represents opportunity.

Upstart’s machine-learning framework processes 2,500+ variables per evaluation, automating 91% of decisions without human review. In 2024, the system approved 101% more applicants than conventional tools—a meaningful advantage when underwriting billions in annual loan volume. The company references a “$1 trillion opportunity” in its addressable market, though that figure warrants scrutiny.

Recent fundamental momentum supports optimism. First-nine-months 2025 revenue totaled $685 million (57% year-over-year growth), with the company returning to profitability at $35 million net income. Nonetheless, macroeconomic uncertainty has pressured sentiment, leaving Upstart shares 88% below pandemic peaks.

At a P/S ratio near 5, the valuation offers entry points for investors betting on market transition away from FICO-based underwriting. Should economic conditions stabilize and lending volumes normalize, a mean-reversion trade appears plausible.

The Broader Context

These three opportunities illustrate how AI’s structural growth trajectory can benefit companies across the value chain—from semiconductor manufacturers enhancing compute performance to infrastructure providers enabling efficient deployment to software makers disrupting legacy processes. While no investment guarantee exists, the market potential extending through 2036 suggests patient capital may be rewarded substantially.