Nasdaq Correction: 3 Artificial Intelligence (AI) Stocks That Could Make You a Millionaire

Market Overview - The Nasdaq index is currently in correction territory, down at least 10% from its all-time high, which is a common occurrence in the stock market, typically happening about once per year [1] - The recent market decline has erased gains made since September of the previous year, effectively resetting the market clock by approximately six months [2] Investment Opportunities - Despite the market correction, there are significant buying opportunities available, particularly in companies heavily invested in artificial intelligence (AI) [2] - The three companies identified as strong investment candidates in the AI sector are Nvidia (NVDA), Taiwan Semiconductor Manufacturing Company (TSM), and Alphabet (GOOG) [3][5] Company Analysis Nvidia (NVDA) - Nvidia specializes in graphics processing units (GPUs) essential for training AI models and powering inference, currently dominating the market [6] - Analysts project Nvidia's revenue to rise by 56% in FY 2026, ending January 2026, driven by substantial capital expenditures from major clients [6][7] Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC produces chips that support various AI workloads and is a key supplier for Nvidia, among other clients [8] - TSMC's management anticipates AI-related revenue growth at a compound annual rate of 45% over the next five years, with overall company revenue expected to grow nearly 20% [8] Alphabet (GOOG) - Alphabet's primary revenue source is its advertising platforms, but it is also a significant player in the AI sector, integrating AI into its ad tools and enhancing its cloud computing services [9] - Google Cloud, a division of Alphabet, experienced a 30% revenue increase in Q4, making it one of the fastest-growing segments within the company [10] Valuation and Market Position - Following the recent sell-off, Nvidia, TSMC, and Alphabet are trading at lower valuations compared to their prices in September, with both Alphabet and TSMC trading under 19 times forward earnings [11] - Nvidia's valuation is slightly higher than the two indexes, which is justified by its rapid growth trajectory [11] Conclusion - The current market conditions present an opportunity for investment in Nvidia, TSMC, and Alphabet, as their lower sale prices enhance the likelihood of outperforming the market in the long term [12]