AI Stocks Take a Hit: Strong Opportunities Ahead for Investors

Amid fears of a trade war, AI stocks face significant declines. However, there are strong buy opportunities, particularly with Nvidia, Alphabet, and Taiwan Semiconductor Manufacturing. Analysts project substantial growth, making these stocks appealing despite current trends.

Date: 09-03-2025

AI Rating: 7

Earnings Per Share (EPS): Alphabet reported a remarkable growth in EPS of 31% in Q4, suggesting the company is performing well and could see higher stock prices as investors recognize this growth. Meanwhile, Nvidia’s EPS is implied to be favorable based on its anticipated revenue growth and historical performance.

Revenue Growth: Both Nvidia and Alphabet exhibit strong revenue growth trajectories. Nvidia is projecting a 65% year-over-year growth in the first quarter of fiscal 2026 and an overall annual revenue growth of 56%. Alphabet is also looking at a revenue growth of 12% in the last quarter and analysts expect 11% growth in the upcoming years. Taiwan Semiconductor Manufacturing (TSMC) anticipates revenue growth at 20% over the next five years, demonstrating strong fundamentals.

Net Income: The report does not explicitly mention net income; however, the positive revenue growth rates for Nvidia and Alphabet imply potential increases in net income, as higher revenues typically contribute to improved profitability.

Profit Margins: While not directly discussed, the strong revenue growth possibilities for Nvidia and Alphabet imply that if they maintain or improve their profit margins, this should positively affect net income and shareholder value.

Return on Equity (ROE): There is no specific mention of return on equity in the report, so no analysis can be made on this factor.

The recent market-wide sell-off has negatively affected AI stock prices, providing a buying opportunity for investors, particularly in NVIDIA, Alphabet, and TSMC, all listed as great buys. These companies are expected to outperform the market based on their growth projections, potentially signaling a rebound in stock prices in the near future.

Stocks: NVDA GOOGL TSM