3 Genius Stocks to Buy Before 2025 Is Over

Core Viewpoint - The artificial intelligence (AI) buildouts are projected to reach new heights by 2026, prompting investors to consider stocks that may perform well in that year, leading to a potential Santa Claus rally at the end of 2025 [1] Group 1: Stock Picks for 2026 - Nvidia, Taiwan Semiconductor Manufacturing (TSMC), and Alphabet are identified as top stock picks for 2026, with early investment in these stocks expected to yield the best returns [2] Group 2: Nvidia - Nvidia has been a leading stock in the market for the past three years, primarily due to its industry-leading graphics processing units (GPUs) that power much of the current generative AI technology [4] - Despite competition from AMD and custom AI accelerators from Alphabet, Nvidia's CEO stated that the company is "sold out" of cloud GPUs, indicating continued demand and a strong position in the market [6] - The ongoing AI buildout supports Nvidia's strong stock outlook for 2026 [7] Group 3: Alphabet - Alphabet's tensor processing unit (TPU), developed in collaboration with Broadcom, may soon be sold directly to Meta Platforms, creating a new revenue stream for the company [8] - In Q3, Alphabet reported a 16% year-over-year revenue increase to $102 billion, with diluted earnings per share (EPS) rising 35% year-over-year, showcasing strong performance despite business maturity [10] - Alphabet's stock has performed well in the latter half of the year, with potential for further growth if it secures significant business wins with its TPUs [11] Group 4: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is crucial in the AI race, as it fabricates chips for companies like Nvidia and Alphabet, making it a key player in the AI technology landscape [12] - TSMC's new 2-nanometer chips, which are entering production, promise to consume 25% to 30% less energy compared to the previous 3nm generation, addressing electricity capacity issues in AI buildouts [14] - As a neutral party in the chip manufacturing sector, TSMC stands to benefit from increased spending on AI infrastructure, making it a strong stock pick for 2026 [15]