Yahoo Finance·2026-01-09 19:07Group 1: Nvidia - Nvidia has a forward price-to-earnings (P/E) ratio of under 25 times next year's analyst estimates and a price/earnings-to-growth (PEG) ratio of less than 0.7 times, indicating it is undervalued [2] - The company experienced a revenue growth of 62% last quarter and is a major beneficiary of the AI infrastructure buildout [3] - Nvidia's GPUs are essential for AI workloads, and its CUDA software platform provides a competitive advantage [4] Group 2: Taiwan Semiconductor Manufacturing - Taiwan Semiconductor Manufacturing (TSMC) has a forward P/E of less than 20 times analyst 2026 earnings estimates and a PEG well below 1 times, suggesting it is also attractively valued [5] - TSMC grew its revenue by nearly 41% last quarter and is the leading manufacturer of advanced logic chips, capable of producing chips at small node sizes with high yield [6] - The company is expanding its capacity and raising prices due to its near monopoly in advanced chip manufacturing, which positions it for strong future growth [7]