Workflow
3 No-Brainer Stocks to Buy Hand Over Fist
TSMTSMC(TSM) The Motley Fool·2025-05-17 09:45

Group 1: Nvidia - Nvidia holds over 90% market share in the data center GPU market, crucial for AI model training [3] - The company generated 115billioninsalesfromitsdatacenterdivisionoverthepast12months,contributingsignificantlytoitstotalrevenueof115 billion in sales from its data center division over the past 12 months, contributing significantly to its total revenue of 130.5 billion [4] - Data center buildouts are projected to grow from 400billionin2024to400 billion in 2024 to 1 trillion by 2028, indicating substantial future growth potential for Nvidia [5][6] Group 2: Taiwan Semiconductor - Taiwan Semiconductor (TSMC) manufactures chips for major tech companies, establishing itself as a key partner due to its continuous innovation [8] - TSMC anticipates AI-related revenue growth at a 45% compound annual growth rate (CAGR) over the next five years, with overall revenue expected to grow at nearly 20% CAGR [9] - TSMC plans to invest $100 billion in U.S. chip production facilities to mitigate tariff risks, as most of its fabrication facilities are outside the U.S. [10][11] Group 3: Alphabet - Alphabet is currently trading at a low valuation of 17 times forward earnings, making it one of the cheaper stocks in the market [12] - Concerns regarding Alphabet stem from its reliance on advertising, potential competition from generative AI, and legal issues related to monopoly practices [14][15] - Despite these challenges, Alphabet is integrating AI into its services and is expected to recover advertising revenue post-downturn, suggesting that current pessimism may be excessive [16]