3 Best Tech Stocks to Buy in December

Core Viewpoint - The artificial intelligence megatrend is expected to be the primary driver for tech stocks as the market approaches 2026, despite various economic challenges [1]. Group 1: Portfolio Management - December is a crucial time for portfolio review and adjustments, including rebalancing and tax loss harvesting, with technology and AI remaining key sectors for investment [2]. Group 2: Key AI Stocks - Three recommended AI stocks for investment are Alphabet, Nvidia, and Taiwan Semiconductor Manufacturing [3]. Group 3: Alphabet - Alphabet is positioned to be a leading AI stock in 2026, having navigated legal challenges related to antitrust issues while maintaining its competitive advantages in search and advertising [4][6]. - The company generated $74.2 billion in advertising revenue in Q3, which constitutes over 70% of its total revenue, alongside $15.2 billion from Google Cloud [7]. - Alphabet is also expanding into data center architecture with its tensor processing units (TPUs), which are being leased to cloud clients and could become a significant profit center [8]. Group 4: Nvidia - Nvidia remains a dominant player in the AI processor market, with its data center sales contributing $51.2 billion to its total revenue of $57 billion in Q3 of fiscal 2026 [10]. - The company has established partnerships with major tech firms and is expected to generate $212.8 billion in revenue for the current fiscal year, with a forecast of $316 billion for 2027 [12][13]. Group 5: Taiwan Semiconductor Manufacturing - Taiwan Semiconductor Manufacturing Company (TSMC) is the largest chip foundry globally and is crucial for producing advanced AI chips for companies like Alphabet and Nvidia [14]. - TSMC is investing $165 billion to expand its operations in the U.S., with Q3 revenue of $33.1 billion, reflecting a 30% increase year-over-year, and net income of $15.1 billion, up by 39% [17].