In the realm of artificial intelligence (AI) stocks, key players include Nvidia (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Meta Platforms (NASDAQ: META), all identified as promising long-term investments despite ongoing market fluctuations.
Nvidia
Nvidia holds a commanding market share of approximately 90% in the graphics processing unit (GPU) sector, driven by surging AI demand. In Q1, the company reported a remarkable 69% year-over-year revenue growth, reaching $44 billion, and anticipates a 50% growth in Q2. Shares are currently trading at 33 times forward earnings.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor, which produces chips for major tech companies including Nvidia, is benefiting from increased AI spending. Its shares trade at 22.9 times forward earnings, aligned with market averages, positioning it as a strong candidate for future growth.
Meta Platforms
Meta, primarily known for Facebook and Instagram, is investing heavily in AI to enhance its advertising revenue, which constitutes 98% of its income. With a forward price-to-earnings ratio of 27, the stock is viewed as undervalued, particularly considering its potential future gains from AI developments such as AI glasses.
