The Motley Foolยท2025-07-25 07:36Group 1: Nvidia - Nvidia is the largest AI chipmaker with a market cap of $4.2 trillion as of July 18, trading at over 55 times earnings and has delivered double-digit revenue growth for nine consecutive quarters [3][5] - Nvidia holds a 92% share of the data center GPU market in Q1 2025, with AI hyperscalers investing heavily in data centers, spending $430 billion in 2024 and expected to rise to $1.1 trillion by 2029 [4][5] - The company ranks fourth on Glassdoor's list of the best places to work in 2025, indicating a strong company culture [5] Group 2: Taiwan Semiconductor Manufacturing - Taiwan Semiconductor Manufacturing (TSMC) is essential for chipmaking, manufacturing chips for major clients like Nvidia, AMD, Apple, and Qualcomm [6][7] - TSMC reported $25.5 billion in net revenue for Q1 2025, a 35% year-over-year increase, and grew its profit margin [7] - TSMC trades at less than 28 times earnings, making it relatively affordable compared to the Nasdaq-100 index [8] Group 3: Alphabet - Alphabet's revenue grew 12% year-over-year to $90.2 billion in Q1 2025, with operating margin increasing from 32% to 34% and EPS rising 49% to $2.81 [9] - Google Search, which accounted for 56% of Alphabet's revenue last quarter, faces challenges from generative AI chatbots like ChatGPT [10][11] - Alphabet is leveraging AI to enhance its products, with Google Gemini capturing a 13.5% market share among AI chatbots and being the default AI assistant on Android devices [11][12] Group 4: Amazon - Amazon is known for its online retail dominance and has integrated AI to optimize operations, recently deploying its one-millionth robot [13][14] - The company reported a 9% year-over-year increase in net sales to $155.7 billion in Q1 2025, with EPS growth of 62% to $1.59 [14] - Amazon trades at about 37 times earnings, representing a quality AI stock opportunity [14]