Nvidia, Taiwan Semiconductor, and ASML: Three No-Brainer Chip Stocks to Buy Right Now

Nvidia, Taiwan Semiconductor Manufacturing, and ASML are top chip stocks to buy right now. Nvidia is the world's premier GPU designer, while Taiwan Semiconductor's chips power countless products. ASML is a key supplier of machines used in chip fabrication. Despite recent growth, these stocks have plenty of room to continue growing at a rapid pace, making them great buys.

Investors are increasingly focused on the artificial intelligence (AI) trend, with many of the most promising companies operating within or connected to the chip industry. Among these, Nvidia (NASDAQ: NVDA), Taiwan Semiconductor (NYSE: TSM), and ASML (NASDAQ: ASML) stand out as top picks. Despite recent growth, these stocks still have significant potential for further expansion.

Nvidia is a leading fabless chip company that designs graphics processing units (GPUs), which are crucial for AI applications. Over the past few years, Nvidia has delivered impressive sales growth, with a 69% increase in revenue [1]. Management projects a 50% growth rate for Q2, indicating strong demand. Additionally, a deal with the U.S. government allows Nvidia to export its H20 chips to China, which should boost revenue [1].

Taiwan Semiconductor is Nvidia's primary chip fabricator, producing chips for various tech giants. With its advanced manufacturing technology, Taiwan Semiconductor is the leading semiconductor foundry worldwide. The company expects its AI revenue to grow at a 45% compound annual rate over the next five years, while total revenue is projected to increase at a 20% rate [1]. Taiwan Semiconductor is also diversifying its production to reduce reliance on Taiwan, with significant investments in the U.S. [1].

ASML is a key supplier of machines used in chip fabrication, with a technological monopoly on extreme ultraviolet (EUV) lithography machines. These machines are essential for producing cutting-edge chips. ASML's long-term revenue outlook remains strong, with projections of 44 billion to 60 billion euros by 2030 [2]. Despite potential tariff impacts, ASML's technological moat ensures its position as a key player in the industry [2].

While these stocks have shown significant growth, it's essential to consider their potential risks. For instance, Nvidia's reliance on AI hyperscalers could pose a risk if demand slows. Additionally, ASML's exposure to tariffs may impact its short-term earnings. However, the long-term growth prospects for these companies remain strong, making them attractive investments for investors.

References:
[1] https://finance.yahoo.com/news/3-no-brainer-chip-stocks-193000341.html
[2] https://www.moomoo.com/news/post/76306662/record-tr4cking-news-nvidia-coinbase-microstrategy-c3-ai-amc-sarepta-mondaycom-biggest-stock