The Motley Fool·2025-11-29 10:00Core Viewpoint - The stock market has shown weakness but is recovering, with the S&P 500 near all-time highs, suggesting it is still a good time to invest, particularly in the AI sector as it looks promising heading into 2026 [1] Group 1: Nvidia - Nvidia is a leader in the AI megatrend, with its GPUs being the most popular technology for accelerated computing, powering a significant portion of global AI workloads [3] - Nvidia's market cap is $430.1 billion, with a current price of $176.96 and a gross margin of 70.05%. The company generated approximately $187 billion in revenue over the past 12 months and has contracts expected to yield an additional $307 billion in sales from 2025 to 2026 [4][5] - If AI hyperscalers maintain their spending, current Nvidia stock prices may be viewed as a great buying opportunity [6] Group 2: Taiwan Semiconductor Manufacturing - Taiwan Semiconductor (TSMC) is a key player in the chip manufacturing sector, providing cutting-edge technology for AI chips, and is expected to benefit from its new 2-nanometer chip node, which offers 25% to 30% lower power consumption compared to previous generations [7][9] - TSMC's market cap is $1.512 trillion, with a current price of $291.51 and a gross margin of 57.75%. The company is well-positioned to charge a premium for its advanced technology, making it a strong buy for long-term investment [8][10] Group 3: Alphabet - Alphabet, despite being near its peak price, is recommended for investment as the market adjusts its valuation to reflect the company's leadership in AI. The company has shown resilience, with Q3 revenue rising 15% year over year in its Google Search business [11][12] - Alphabet's overall revenue increased by 16% year over year, with diluted EPS rising by 35%, positioning it among the fastest-growing trillion-dollar companies [12] - Although the stock trades at 29 times next year's earnings, the changing sentiment around its AI prospects suggests it remains a worthwhile investment [13][14]