Bargain Stocks in AI Arms Race: Nvidia, TSMC, Amazon & Alphabet

Bargain-buying opportunities emerge as tech stocks face sell-off. Nvidia, TSMC, Alphabet, and Amazon may be strong long-term investments amid short-term volatility.

Date: 13-03-2025

AI Rating: 7

Short-term market sell-off presents buying opportunities. The recent sell-off in tech stocks, particularly within the AI sector, indicates that despite current market conditions, there are substantial long-term growth opportunities. The key companies mentioned, such as Nvidia, TSMC, Alphabet, and Amazon, are identified as strong investments amid this temporary downturn.

The impact of Revenue Growth is significant for TSMC, which projects a remarkable 45% compound annual growth rate (CAGR) for AI-related chip revenue over the next five years, alongside an expected overall company revenue growth of nearly 20%. This growth highlights TSMC's ability to align with the booming demand for chips, especially for AI technologies. Investors are likely to view these projections as positive indicators for TSMC's stock performance.

Nvidia's performance also stands out, with an anticipated revenue growth of 65% for Q1, reaching approximately $43 billion. Analysts project a robust 56% growth for the year, estimating total revenue to hit $204 billion. While no guidance is provided for full-year earnings, the demand for GPUs, essential for AI, suggests strong profit potential for Nvidia. Consequently, Nvidia's stock is viewed as undervalued at 25 times forward earnings, further enhancing its attractiveness to investors wanting to acquire shares at a lower price point during the sell-off.

Furthermore, both Amazon and Alphabet are expanding their cloud computing sectors, integral for supporting AI growth. Alphabet's Google Cloud has shown a significant revenue growth rate of 30% year over year, while Amazon's AWS grew by 19%. This cloud computing expansion serves as a backbone for AI services and is predicted to continue fostering revenue growth for both companies in the future.

In conclusion, despite the market challenges, the strong revenue growth forecast and AI-related demand position Nvidia, TSMC, Alphabet, and Amazon favorably in the eyes of investors. The sell-off creates potential opportunities for those looking to invest in companies poised for long-term growth in AI and cloud computing.

Stocks: AMZN GOOG TSM NVDA