Core Insights - The stock market is experiencing volatility, presenting opportunities to invest in growing companies at lower valuations [1] - Artificial intelligence (AI) is expected to significantly transform business operations, making investments in top AI stocks a strategic move [2] Group 1: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the world's leading third-party chipmaker, controlling 67% of the global foundry market, and is well-positioned for long-term growth [4][5] - The company reported a net profit of $36 billion on $90 billion in revenue last year, indicating strong profitability [4] - Despite cyclical trends in the chip industry, TSMC's revenue has more than doubled over the last five years, with a 37% year-over-year growth in Q4 2024 [5][6] - TSMC plans to invest $165 billion to expand its manufacturing capacity in the U.S., reflecting confidence in future growth [7] - The stock trades at a forward price-to-earnings multiple of 16, with expected earnings growth of 32% annually over the next several years [8] Group 2: Alphabet (Google) - Alphabet generates 75% of its revenue from digital advertising, totaling $350 billion last year, and is leveraging AI to enhance its advertising and cloud computing businesses [9] - The company experienced a 14% revenue growth in 2024, driven by new AI features that increased user engagement with Google Search [11] - Google Cloud, with a 12% market share, saw a 30% year-over-year revenue surge in Q4, fueled by demand for enterprise AI services [12] - Alphabet plans to invest $75 billion in capital expenditures in 2025 to expand its technology infrastructure [13] - The stock is attractively valued at a forward P/E of 16, with projected earnings growth of 16% annually in the coming years [14]