3 AI Stocks Up 14% to 19% in 2025 That Should Continue Moving Higher

Group 1: AI Stocks Overview - Many AI stocks have struggled at the start of 2025 due to factors like DeepSeek's low-cost AI modeling breakthrough and geopolitical concerns [1] - President Trump's "Liberation Day" announcement marked a low point for many AI stocks, but some have managed to achieve net gains for the year [2] Group 2: Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC holds over two-thirds of the foundry market and serves major clients like Nvidia, Apple, and Broadcom [4] - Despite geopolitical tensions with China, TSMC's stock has rebounded, showing a 14% increase year-to-date [5] - TSMC reported Q1 2025 revenue of $25.5 billion, a 42% increase year-over-year, with net income rising 60% to $11 billion [6] - The company forecasts Q2 revenue between $28.4 billion and $29.2 billion, indicating continued growth [7] - TSMC's P/E ratio is 29, suggesting it may be undervalued as demand for AI chips continues to rise [8] Group 3: Nvidia - Nvidia, a leader in AI data center chips, has seen its stock rise 16% year-to-date after a significant drop earlier in the year [9] - The company's revenue increased from $27 billion in FY 2023 to $130 billion in FY 2025, indicating strong business growth [10] - AI is expected to drive substantial investments in data centers, with global expenditures projected to grow by 21% annually, surpassing $1 trillion by 2029 [11] - Analysts predict Nvidia's full-year revenue will reach $200 billion this fiscal year and $250 billion next year, with earnings expected to grow nearly 29% annually over the next three to five years [12] Group 4: Advanced Micro Devices (AMD) - AMD's stock has surged 19% in 2025, recovering from a 63% decline between February 2024 and April 2025 [14] - The company is positioned well in the AI market with new GPUs that compete with Nvidia's offerings [15] - Analysts estimate AMD's sales will reach $31.8 billion in 2025 and $37.4 billion in 2026, reflecting year-over-year growth of 23% and 18% respectively [16] - AMD's gross margin improved to 50% in Q1 2025, up from 42% in late 2022, narrowing the gap with Nvidia's 61% gross margin [17] - Overall, AMD is expected to continue its upward trajectory with new product launches and increasing sales [18]