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Three AI Stocks to Invest in Right Now: Nvidia, Taiwan Semiconductor, and Alphabet
ByAinvest
Monday, Aug 4, 2025 11:40 pm ET1min read
Three stocks to invest in: Nvidia, Taiwan Semiconductor Manufacturing, and Alphabet. Nvidia and Taiwan Semiconductor Manufacturing benefit from data center buildouts and AI computing power demand. Alphabet is a competitor in the AI race and a target for investment. All three stocks have secular trends that can push them higher and beat the market.
As the global economy continues to recover and tariff uncertainties decrease, investors are looking for stocks with strong secular trends. Three notable companies, Nvidia (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Alphabet (NASDAQ: GOOGL), stand out due to their significant involvement in the AI and data center markets.Nvidia and Taiwan Semiconductor Manufacturing
Nvidia and Taiwan Semiconductor Manufacturing are both beneficiaries of the massive data center capital expenditures. The demand for AI computing power is driving companies to heavily invest in data center infrastructure. Nvidia's graphics processing units (GPUs) are the gold standard for computing devices in these data centers [1]. Taiwan Semiconductor Manufacturing is Nvidia's primary chip supplier, and its management expects monster growth from its AI-related business, with revenue expected to rise at a 45% compound annual growth rate (CAGR) over the next five years [1].
Alphabet
Alphabet, the parent company of Google, is also a key player in the AI race. Despite concerns that generative AI products could disrupt Google Search, the company's latest results indicate that the concern is overblown. Google Search's revenue rose 12% year over year in Q2, showcasing resilience against AI competition. Alphabet's stock trades at a significant discount to the broader market, offering a great trade-off between value and growth [1].
Conclusion
Investing in Nvidia, Taiwan Semiconductor Manufacturing, and Alphabet presents a compelling opportunity for investors. These companies are well-positioned to benefit from the ongoing data center buildout and AI computing power demand. While Nvidia and Taiwan Semiconductor Manufacturing are directly benefiting from these trends, Alphabet's strong AI integration and business strength make it an attractive investment as well. As these companies continue to innovate and grow, they are likely to outperform the broader market.
References
[1] https://finance.yahoo.com/news/3-genius-artificial-intelligence-ai-101500905.html
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