Four Top Stocks to Consider Investing in This May
May has arrived, and the traditional advice to “sell in May and go away” may not apply this year. With promising valuations in the market, the potential for a stock market resurgence hinges on upcoming tariff developments and trade agreements.
Here are four stocks that stand out as strong long-term investments, regardless of imminent market conditions.
Nvidia
Nvidia (NASDAQ: NVDA) is a key player in the artificial intelligence (AI) landscape, supplying Essential graphics processing units (GPUs) that spearhead the AI revolution. Despite current investor focus on tariffs, Nvidia is positioned for significant growth this year.
Wall Street analysts anticipate a 54% revenue growth for Fiscal 2026 and a 23% increase for Fiscal 2027. If the data center market expands rapidly, these figures could be conservative. In 2024, data center capital expenditures reached approximately $400 billion, with Nvidia projecting this will rise to $1 trillion by 2028. Given that data centers generated around $115 billion for Nvidia in the past year, substantial growth seems likely.
Notably, Nvidia’s stock trades at approximately 25 times its forward earnings, marking a lower valuation than seen recently. This makes it an attractive buy this month, especially ahead of its Q1 earnings report.
Alphabet
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has released its Q1 earnings, with management expressing optimism despite potential tariff impacts. The company is enhancing its business operations with various AI features.
However, Alphabet faces challenges, including ongoing legal battles concerning alleged monopolies in its search and advertising businesses. The long-term ramifications of these issues remain uncertain, as they may reach the Supreme Court.
Despite these uncertainties, Alphabet’s stock is attractively priced at about 16.7 times forward earnings, compared to the S&P 500’s 20.5. This value could be appealing, as current investor sentiment appears to reflect a pessimistic outlook.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (NYSE: TSM) stands to gain significantly from the AI boom, producing chips for nearly all major companies in the sector. As industry leaders like Nvidia outsource chip production, TSMC is a crucial player.
During its Q1 conference call, TSMC acknowledged tariff-related uncertainties but maintained its revenue guidance for 2025, expecting growth at a mid-20% rate. Looking further, TSMC anticipates a compound annual growth rate (CAGR) of about 20% over the next five years.
With its strong outlook, TSMC’s stock trades at only 17.8 times forward earnings, which is historically low. This presents an excellent opportunity for investors to acquire shares in this promising company.
MercadoLibre
If concerns about tariffs are prevalent in your portfolio, consider investing in MercadoLibre (NASDAQ: MELI). As the leading e-commerce platform in Latin America, it combines elements of PayPal and Amazon into one robust business.
MercadoLibre has shown consistent revenue and earnings growth in recent years and is insulated from U.S. regulatory decisions due to its Latin American focus, even though it is traded on a U.S. exchange.
Growth is expected to continue as Latin America lags behind the U.S. in e-commerce development. This makes MercadoLibre an appealing investment choice for those seeking stability and growth without the volatility of tariff impacts.
Note: This analysis reflects the author’s views and is based on current market conditions. Always conduct further research before making investment decisions.