Buy the Best AI Stocks Now or Wait for Nvidia's Earnings?

Core Insights - The stock market is experiencing a pullback, particularly affecting AI and big tech stocks ahead of Nvidia's earnings release, presenting a potential buying opportunity for long-term investors [1][4][10] - Taiwan Semiconductor Manufacturing Co. (TSMC) and Vertiv are highlighted as strong AI-related investment options [2][7] Group 1: Market Overview - Wall Street's recent sell-off is driven by concerns surrounding AI stocks, particularly as Nvidia's earnings report approaches [1][4] - Despite the pullback, the Nasdaq remains significantly up, with a 45% increase since early April and a 17% rise in 2025 [3] - The market's current state is characterized by extreme fear, as indicated by CNN's Fear and Greed Index, suggesting a potential contrarian buying opportunity [10] Group 2: Taiwan Semiconductor Manufacturing Co. (TSMC) - TSMC holds a dominant position in the semiconductor industry, with a 60% share of the foundry market and 90% of advanced chip manufacturing [12][11] - The company is projected to grow its revenue by 34% in FY25 and 21% in FY26, increasing from $90 billion in 2024 to $145 billion in 2025 [16] - TSMC's adjusted earnings per share (EPS) is expected to grow by 45% in FY25 and 20% in FY26, with a recent upward revision of 12% for FY26 [16][17] - The stock is currently trading at a 15% discount to the tech sector and 30% below its highs, making it an attractive buy [21][20] Group 3: Vertiv Holdings Co. - Vertiv is recognized for its AI infrastructure solutions and has a strong partnership with Nvidia, addressing critical challenges in AI data centers [22][26] - The company anticipates revenue growth of 28% in 2025 and 21% in 2026, reaching $12.32 billion, more than doubling its sales from 2022 [26] - Vertiv's adjusted EPS is projected to grow significantly, with a 44% increase in 2025 following a 236% expansion in 2023 [26][27] - The stock has shown impressive performance, skyrocketing 1,100% in the past three years, and is currently trading at a 25% discount to its highs [27][29]