Three Bargain AI Stocks to Watch for Skyrocketing Growth by 2030

Alphabet, Taiwan Semiconductor, and The Trade Desk are undervalued AI stocks with strong long-term prospects. Alphabet's Google Search engine is under scrutiny, but it has integrated AI search and delivered 12% YoY revenue growth in Q2. Taiwan Semiconductor is benefiting from massive AI spend and expects 45% CAGR in AI-related revenue and 20% CAGR in overall revenue over the next five years. The Trade Desk recently stumbled after earnings, but it is still a solid buy.

In the rapidly evolving landscape of artificial intelligence (AI), certain stocks have emerged as undervalued yet promising investments. Alphabet (GOOGL), Taiwan Semiconductor Manufacturing Company Limited (TSM), and The Trade Desk (TTD) are among these, each with unique strengths and growth prospects.

Alphabet (GOOGL)

Alphabet, the parent company of Google, has been making significant strides in AI integration. On August 15, 2025, Alphabet closed with a 0.53% gain, driven by a $4.34 billion trading volume ranking 17th [1]. The company's $1.8 billion AI infrastructure partnership with TeraWulf is a strategic move that positions it as a key player in AI infrastructure. The 10-year agreement includes $1.8 billion in lease support for TeraWulf’s Lake Mariner data center, with potential expansion to $8.7 billion and 200 MW of liquid-cooled AI capacity by 2026 [1]. This partnership underscores Alphabet's focus on zero-carbon AI infrastructure, aligning with global decarbonization goals and reinforcing its AI ecosystem leadership. Despite scrutiny over its Google Search engine, Alphabet delivered 12% YoY revenue growth in Q2, demonstrating the power of AI integration [1].

Taiwan Semiconductor Manufacturing Company Limited (TSM)

Taiwan Semiconductor (TSM) is a leading contract semiconductor manufacturer, with a strong foothold in AI-related revenue. On August 8, 2025, TSM reported net revenue for July 2025 of NT$323.17 billion, reflecting a growth of 22.5% compared to June 2025 and an increase of 25.8% compared to July 2024 [2]. The company's revenue for January through July 2025 totaled NT$2,096.21 billion, a growth of 37.6% compared to the same period last year [2]. TSM is expected to see a 45% CAGR in AI-related revenue and 20% CAGR in overall revenue over the next five years, positioning it as a strong long-term investment [2].

The Trade Desk (TTD)

The Trade Desk recently stumbled after earnings, but it remains a solid buy. The company's AI-driven advertising platform has shown resilience, and its recent setback may present an opportunity for investors. With a strong focus on AI and machine learning, The Trade Desk is well-positioned to capitalize on the growing demand for AI in advertising. Despite recent earnings challenges, the company's long-term prospects remain promising, making it an attractive investment for those willing to take a long-term view [3].

Conclusion

Alphabet, Taiwan Semiconductor, and The Trade Desk are undervalued AI stocks with strong long-term prospects. Each company has unique strengths and growth opportunities, making them attractive investments for those looking to capitalize on the AI revolution. While these stocks come with their own set of risks, their potential rewards make them worth considering for investors with a long-term horizon.

References

[1] https://www.ainvest.com/news/alphabet-4-34b-volume-ranks-17th-ai-infrastructure-pact-drives-8-7b-expansion-2508/
[2] https://finance.yahoo.com/news/taiwan-semiconductor-manufacturing-tsm-announces-021309686.html
[3] https://www.ainvest.com/news/softbank-2-billion-intel-stake-strategic-bet-ai-driven-semiconductor-recovery-2508/