Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.

AI is trained and powered by data center servers that use powerful graphics processing units (GPUs), most of which have been supplied by Nvidia. Memory chips are complementary to GPUs because they store information in a ready state so it can be called upon instantly, which is particularly critical in data-intensive AI workloads.

Nvidia's free cash flow is up 167% over the last 12 months to $47 billion, massively outperforming its competitors. Nvidia has the brand power and financial resources to retain its dominance in AI and keep pushing its technology forward, making it one of the most reliable ways to invest in the industry.

Micron Technology stock is down over 40% from its year-to-high peak as analysts turn bearish toward the memory market.

The central bank's decision to slash borrowing costs by 50 basis points is easing concerns about the economy. That could lift the AI trade.

Nvidia has been a bellwether in the artificial intelligence (AI) space thanks to its graphics processing units (GPUs) that have played a crucial role in the training and deployment of AI models. But the stock has fallen out of favor of late as investors are worried about its slowing growth.