The AI trade is gaining traction on Wall Street, impacting various sectors, but key players like Nvidia (NVDA), Taiwan Semiconductor (TSM), and Vertiv (VRT) are still valued reasonably despite their significant growth. Nvidia’s earnings are projected to grow by 28.2% annually over the next three to five years, with sales forecasted to increase by 51.4% this year and 25.1% next year. Taiwan Semiconductor reported a nearly 40% year-over-year increase in monthly revenue as of May and anticipates 28.2% sales growth for 2025, alongside long-term earnings growth of 20.8% annually.
Vertiv is integral to the AI supply chain, focusing on power management solutions for data centers, expecting high-teens growth in sales over the next two years and an annual earnings growth rate of 27.2%. Currently, NVDA trades at 36x forward earnings, TSM at 23.1x, and VRT at 30.6x forward earnings, presenting compelling investment opportunities due to their solid fundamentals and essential roles in the ongoing AI revolution.
