3 No-Brainer AI Stocks to Buy in July

Core Viewpoint - The artificial intelligence (AI) investment landscape remains robust, with companies planning to invest record amounts in data centers to support growing AI workloads. Key beneficiaries include Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing [1][2]. Group 1: Nvidia - Nvidia holds approximately 90% market share in the data center GPU market, driven by its superior GPU technology and software [4]. - The stock trades at 37 times forward earnings, down from around 45 times in the previous year, indicating potential for further price appreciation [5]. - Nvidia is positioned as a strong long-term investment opportunity [7]. Group 2: Broadcom - Broadcom is developing custom AI accelerators, known as XPUs, which can outperform traditional GPUs for specific tasks, potentially reducing reliance on Nvidia [8][9]. - The company anticipates its AI revenue to grow significantly, projecting between $60 billion and $90 billion by fiscal year 2027, up from $12.2 billion in FY 2024 [10]. - Broadcom's strategic partnerships and contracts, such as with Google for Tensor Processing Units, position it well for future growth [10]. Group 3: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the leading chip manufacturer for both Nvidia and Broadcom, providing essential fabrication services [11]. - The company is investing $165 billion in its Arizona facility, which will help mitigate concerns regarding its proximity to China [12]. - TSMC expects nearly 20% compounded annual growth rate (CAGR) in revenue over the next five years, indicating strong long-term growth potential [13][14].