What AI related stocks are expected better returns in the long run

``` The deep research logic is organized as follows: Okay, let's tackle this question about AI-related stocks with the best long-term potential. The user is asking for stocks expected to deliver better returns in the long run. First, I need to go through the provided references and background to find relevant data. Starting with the references, there are several articles highlighting companies like NVIDIA, Alphabet, TSMC, Tencent, and others. Let's break down each company's strengths and challenges based on the data. NVIDIA is mentioned multiple times as a leader in AI chips, especially with their GPUs and Blackwell architecture. The articles talk about their dominance in data centers and partnerships with cloud providers. However, there are risks like competition from AMD and Huawei, as well as geopolitical issues with China. But their R&D investments and ecosystem lock-in seem strong. Alphabet (Google) is another key player. They're investing heavily in AI across search, cloud, and autonomous driving. The articles mention their integration of AI into Google Search and cloud services, which could drive growth. However, regulatory issues and competition from Tencent and ByteDance are concerns. Their valuation seems attractive, trading below peers. TSMC is highlighted as a critical supplier for AI chips, especially for NVIDIA. Their revenue growth is impressive, and they've secured tariff exemptions. The risks include dependency on a few customers and potential supply chain disruptions. But their market share in advanced AI chips is significant. Tencent is noted for integrating AI into gaming, cloud services, and advertising. Their AI models like Hunyuan are being used internally and for cloud services. The risks here are regulatory scrutiny in China and competition from Alibaba and ByteDance. Their diversification across gaming and fintech might offer stability. Other companies like Palantir and Microsoft are mentioned, but the user's profile shows interest in the NAS Composite, which includes large-cap stocks. NVIDIA, Alphabet, and TSMC are all part of major indices, aligning with the user's preference for blue-chip exposure. The user's investment horizon is medium to long-term, so focusing on companies with sustainable competitive advantages and strong R&D pipelines makes sense. NVIDIA's leadership in GPUs, Alphabet's ecosystem integration, and TSMC's manufacturing dominance seem like solid bets. Tencent adds exposure to the Chinese market, which could be a growth driver despite risks. I should structure the answer by highlighting each company's strengths, risks, and why they're positioned for long-term success. Using tables to present key metrics like market share, revenue growth, and valuation will make it clear. Also, incorporating the user's profile by emphasizing blue-chip stocks and diversified exposure would be beneficial. Need to ensure all data points are cited correctly from the references. For example, NVIDIA's 92% market share in data center GPUs from reference 6, TSMC's revenue surge from reference 17, and Alphabet's AI cloud investments from reference 14. Also, mention the risks like regulatory issues and competition to provide a balanced view. Finally, the conclusion should tie everything together, reinforcing why these stocks are top picks for long-term returns based on their market positions and growth prospects. ``` ### 🚀 **Conclusion** **NVIDIA (NVDA), Alphabet (GOOGL/GOOG), and Taiwan Semiconductor Manufacturing Co. (TSM)** are the top AI-related stocks poised for superior long-term returns. These companies dominate critical segments of the AI ecosystem—semiconductors, cloud infrastructure, and software applications—while maintaining strong competitive moats and growth trajectories. Below is a detailed analysis of why these stocks stand out for long-term investors. --- ### 🌐 **Key AI Stocks for Long-Term Growth** | **Company** | **Why It’s a Long-Term Winner** | **Risks** | **Valuation** | |---------------------|---------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|--------------------------------------------------------------------------------| | **NVIDIA (NVDA)** | - **Market Leader**: Controls 92% of data center GPU market. - **Innovation**: Blackwell architecture offers 10x performance leap. - **Diversification**: AI chips, cloud gaming, and autonomous vehicles. | - **Competition**: AMD and Huawei closing the gap. - **Regulatory Risks**: U.S.-China trade tensions. | - **P/E**: 35x (below 5-year average). - **Upside**: $10T valuation potential. | | **Alphabet (GOOGL)** | - **AI Integration**: AI-powered search, cloud, and autonomous driving. - **Cloud Growth**: Google Cloud revenue surged 38% YoY. - **Ecosystem**: Synergies across Search, YouTube, and Workspace. | - **Regulatory Scrutiny**: Antitrust risks. - **Competition**: Tencent and ByteDance in AI advertising. | - **P/E**: 19x (undervalued vs. peers). - **Upside**: $9B AI/Cloud investment. | | **TSMC (TSM)** | - **AI Chip Supply**: 90% of global advanced AI chips. - **Revenue Surge**: 38% YoY growth in 2025. - **Tariff Exemption**: Secured U.S. market access. | - **Dependency**: Reliant on NVIDIA and AMD. - **Supply Chain Risks**: Geopolitical tensions. | - **P/E**: 22x (moderate). - **Upside**: $500B U.S. AI infrastructure investment. | --- ### 📊 **Why These Stocks?** 1. **NVIDIA**: As the backbone of AI infrastructure, NVIDIA’s GPUs are indispensable for training large language models (LLMs) and enterprise AI systems. Its strategic partnerships with cloud providers like AWS and Microsoft Azure ensure sustained demand. The company’s $500B U.S. AI infrastructure investment further solidifies its leadership. 2. **Alphabet**: Alphabet’s full-stack AI approach—spanning hardware (TPUs), software (TensorFlow), and applications (Google Search)—creates a virtuous cycle of innovation. Its $9B bet on AI education and cloud expansion signals long-term commitment. While regulatory risks loom, Alphabet’s diversified ecosystem (Search, YouTube, Cloud) provides resilience. 3. **TSMC**: As the world’s largest semiconductor foundry, TSMC is the unsung hero of the AI revolution. Its 90% market share in advanced AI chips and tariff exemptions for U.S. exports ensure sustained growth. The company’s ability to scale production for NVIDIA and AMD positions it as a critical enabler of AI adoption. --- ### 🛠️ **Why These Stocks Are Better Than Others** - **Palantir (PLTR)**: While Palantir’s AI analytics platform is innovative, its high valuation (P/E: 245x) and reliance on government contracts make it riskier for long-term investors. - **Microsoft (MSFT)**: Microsoft’s AI cloud tools (Azure AI Foundry) are strong, but its AI revenue growth (157% YoY) trails NVIDIA and Alphabet. - **Tencent (TCEHY)**: Tencent’s AI integration into gaming and cloud services is promising, but regulatory risks in China and competition from Alibaba limit upside. --- ### 🌟 **Final Takeaway** For long-term investors seeking exposure to the AI revolution, **NVIDIA, Alphabet, and TSMC** are the safest bets. NVIDIA leads in hardware innovation, Alphabet dominates software ecosystems, and TSMC ensures the supply chain. Together, they represent a diversified portfolio with high growth potential and strong competitive advantages. Query |code|stock code|stock name|Last Price|Last Change|Theme|Inclusion Reason|market_code| |---|---|---|---|---|---|---|---| |FLD|FLD.O|Fold Holdings|3.87|5.163043|||186| |RIOT|RIOT.O|Riot Platforms|11.96|-2.922078|||186| |CANG|CANG.N|Cango|4.74|-3.853955|||169| |CRCL|CRCL.N|Circle|135.23|-4.485097|||169| |CLSK|CLSK.O|CleanSpark|9.36|-4.878049|||186| |MARA|MARA.O|MARA Holdings|15.17|-5.717837|||186| |COIN|COIN.O|Coinbase Global|302.07|-5.817978|||185| |WULF|WULF.O|TeraWulf|8.78|-6.396588|||186| |MSTR|MSTR.O|Strategy|336.57|-7.433993|||185| |BTBT|BTBT.O|Bit Digital|2.72|-7.4829930000000004|||186|