Key Points
- “Nvidia” and “Taiwan Semiconductor” are supplying computing power for the AI arms race.
- Alphabet and Amazon have growing cloud computing divisions.
The AI boom still has many years to go before reaching its full capacity of maturity.
The artificial intelligence (AI) boom is alive and investors need to understand that this is a long-term trend, and that any dip (like we’re expecting now) may be a great opportunity to buy the best AI stocks.
I’ve got four of them that look like fantastic opportunities, and investors should consider buying them right now to ensure they’re well-positioned to take advantage of the massive buildout that’s ongoing.
This is not a recommendation, do your own analyse before buying or selling
Image source: Getty images
1. Nvidia
Nvidia has emerged as a leading AI investment choice since the onset of the AI arms race in 2023. Its graphics processing units (GPUs) have set the benchmark for the industry, and it is unlikely to lose that status anytime soon.
With $300 billion in orders for its premium AI computing chips expected over the next five quarters, it presents a fantastic stock opportunity, particularly as many AI hyperscalers have reported record spending again in 2026. Even though some believe Nvidia is overpriced, I view it as a bargain.
Investors often overlook Nvidia’s remarkable growth rate. The PEG ratio reflects the growth, when it is less than 1, it is undervalued.
2. Taiwan Semiconductor
Taiwan Semiconductor plays an very important role in the competition for AI Battle. The company manufactures chips for various company all over the world, including Nvidia. Without its foundry in taiwan, the current improvements in AI technology will not be feasible. Also, TSMC is addressing one of the most vital challenges that AI currently faces.
It’s increasingly power that creates an bottleneck for AI computing, and without substantial changes, it may see a very bad slowdown in growth. Nonetheless, TSMC’s innovative chip technology reduces power usage by 25% to 30% when running at the same speed.
This enhancement enables AI hyperscalers to operate more computing units while maintaining the same level of energy consumption. This development is a game changer and has the potential to propel tremendous growth for TSMC.
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3. Alphabet
Alphabet was once thought to be on the verge of extinction in the AI landscape. Many investors believed that the google core business is the Google Search engine, would be overtaken by generative AI technology.
Its traditional business is flourishing, with a 16% increase in revenue year over year during Q3. Net income also experienced a remarkable rise, climbing by 33%. A portion of this achievement can be linked to the growth of Alphabet’s cloud computing sector.
Google Cloud is one division that is capitalizing on the AI revolution, as it leases its computing resources to those who prefer not to develop their own infrastructure. This strategy is poised to be a lucrative opportunity in the later stages of the AI trend, positioning Alphabet as an excellent stock to invest in today.
4. Amazon
Amazon’s story is similar to that of Alphabet. Amazon has a strong primary business in e-commerce and advertising, with an quickly growing cloud computing division called AWS. Amazon Web Services (AWS) is at the first money maker, making it as an industry power maker with first movers advantage. Despite AWS facing a slowdown in growth while its competitors has arrived, it seems to have an moderate quarter in Q3, but excellent profit in long-term view.
In Q3, AWS announced a 20% increase in totsl revenue compared to all its previous year — a best target not seen in many years. This resurgence in growth is significant and bolsters Amazon’s main profit source. With AWS demonstrating its continued relevance in the AI landscape, I believe this elevates Amazon to a must-have investment.
Given that Amazon has had a less favourable year compared to many of its AI counterparts, I think it is well-positioned to excel through 2026 and beyond, making it an excellent stock to purchase today.
