4 AI Stocks to Buy Now for Long-Term Gains

Nvidia, Taiwan Semiconductor Manufacturing, Alphabet, and Nvidia are four AI stocks to invest in for long-term gains. Nvidia is the largest AI chipmaker with a dominant position in the data center GPU market and a well-run company culture. Taiwan Semiconductor Manufacturing is essential to chipmaking and has reported 35% year-over-year revenue growth in Q1 2025. Alphabet, the parent company of Google, has a strong start to the year with 12% year-over-year revenue growth and increasing operating margin and EPS.

Investors seeking long-term gains in the artificial intelligence (AI) sector have several promising options. Among the top AI stocks, Nvidia, Taiwan Semiconductor Manufacturing (TSMC), and Alphabet stand out due to their strong fundamentals and market positions.

Nvidia (NASDAQ:NVDA)
Nvidia is the largest AI chipmaker, with a dominant position in the data center GPU market. Analysts have been closely tracking Nvidia, with a consensus "Buy" rating and an average price target of $180, implying a 4.7% upside [1]. Despite recent supply constraints in China, Nvidia's strong market position and AI-driven solutions for data centers, self-driving cars, robotics, and cloud services make it a compelling investment.

Taiwan Semiconductor Manufacturing (NYSE:TSM)
TSMC is essential to chipmaking and has reported 37.8% year-over-year (YoY) revenue growth in Q2 FY2025, extending its five-quarter streak of 40% momentum [3]. Backed by demand for 3nm and 5nm nodes fueled by expanding AI workloads, TSMC raised its full-year forecast to 30% growth. Despite the stock hitting all-time highs, its valuation remains reasonable, with a non-GAAP forward P/E of 24x, down from 28x at prior rating [3].

Alphabet (GOOGL)
Alphabet, the parent company of Google, has a strong start to the year with 12% YoY revenue growth and increasing operating margin and EPS [4]. Alphabet's aggressive push into AI has driven its core businesses' growth, with double-digit revenue growth across key segments such as Search, YouTube advertising, Google Cloud, and subscription platforms and devices. While the stock has underperformed the broader market in 2025, Alphabet's long-term AI strategy and solid execution suggest there may be considerable upside from here.

Nvidia's AI Chips in China
Nvidia's advanced AI chips worth at least $1 billion were smuggled to China in the three months following tighter US export controls, highlighting the company's significant presence in the Chinese market [2]. Despite the technical and financial inefficiency of using smuggled products, the incident underscores the demand for Nvidia's AI chips in China.

Conclusion
Investors looking for long-term gains in the AI sector should consider Nvidia, TSMC, and Alphabet. These companies have strong fundamentals, market positions, and growth prospects driven by AI adoption. While there are geopolitical risks and regulatory pressures, the long-term potential of these AI stocks remains attractive.

References
[1] https://finance.yahoo.com/news/nvidia-nvda-analysts-see-long-162152446.html
[2] https://economictimes.indiatimes.com/tech/artificial-intelligence/nvidia-ai-chips-worth-1-billion-entered-china-despite-us-curbs-ft/articleshow/122895024.cms
[3] https://www.tradingnews.com/news/tsmc-stock-nyse-tsm-tests-243-usd
[4] https://finance.yahoo.com/news/ai-alphabet-rocket-3-trillion-151854473.html