Bargain AI Stocks: TSM, ADBE, and GOOG/GOOGL Offer Promising Value

Three AI stocks to consider for value: Taiwan Semiconductor (TSM), Adobe (ADBE), and Alphabet (GOOG/GOOGL). TSM is a key player in AI technology and has a strong position in the market. Adobe has invested in generative AI and has its own Firefly product, making it a contender in the graphic design industry. Alphabet's stock is also facing concerns about generative AI replacing Google Search, but it remains a dominant search engine with ingrained habits among internet users.

Investors seeking value in the artificial intelligence (AI) space have several promising options to consider. Among the notable stocks, Taiwan Semiconductor (NYSE: TSM), Adobe (NASDAQ: ADBE), and Alphabet (NASDAQ: GOOG/GOOGL) stand out as potential bargains.

Taiwan Semiconductor (TSM) is a key player in AI technology, serving as the primary chip fabricator for leading tech companies such as Nvidia and Apple. With a strong position in the market, TSMC has shown remarkable growth, with its revenue in U.S. dollars rising by 44% in the second quarter of 2025, surpassing expectations [1]. Management has guided that it expects its revenue to increase at nearly a 20% compound annual growth rate over the next five years. Although TSMC trades at a slight premium to the broader market at 25 times forward earnings, its expected growth rate of nearly double the market's pace over the next five years makes it an attractive investment.

Adobe (ADBE) is another stock to consider. Known for its leading graphics design tools, Adobe is a top choice for video editing and image creation. However, investors are growing concerned that generative AI could displace Adobe's business. Despite these concerns, Adobe has invested heavily in generative AI and has its own Firefly product, allowing seamless integration of AI with its existing editing tools. This investment positions Adobe to compete in the realm of generative AI while giving creators more control over the final product [1]. Adobe has posted consistent revenue growth over the past few years, making it a solid choice for investors looking for value in the AI space.

Alphabet (GOOG/GOOGL) faces similar concerns about generative AI replacing Google Search. However, Google's dominance in the search engine market is well-established, with ingrained habits among internet users worldwide. Google has already implemented AI-powered features across its product line, including AI Overviews and a preview of AI Mode in Search. These features suggest that Google is well-positioned to maintain its market share despite the advent of generative AI [3]. Alphabet's stock trades at a significant discount to the broader market, with a forward earnings multiple of 18, making it an attractive option for value investors.

In conclusion, Taiwan Semiconductor, Adobe, and Alphabet offer promising opportunities for investors seeking value in the AI space. Each of these stocks has its own strengths and growth potential, making them worth considering in a diversified investment portfolio.

References:
[1] https://finance.yahoo.com/news/3-best-bargain-artificial-intelligence-094500318.html
[2] https://www.tradingview.com/news/invezz:07bd666f2094b:0-japan-s-550b-investment-could-back-taiwan-chip-plants-in-us-says-trade-official/
[3] https://nymag.com/intelligencer/article/ai-boom-expanding-google-dominance.html