Investors Eye AI Stocks Amid Nasdaq Correction

Investors are urged to remain calm as the Nasdaq experiences a correction. Opportunities arise in the AI sector, particularly with Nvidia, TSMC, and Alphabet, which are expected to outperform the market significantly.

Date: 18-03-2025

AI Rating: 7

As noted in the report, the Nasdaq index is currently in a correction phase, which often causes investor panic. However, such corrections are common and typically seen as opportunities for strategic buying. The report points out that while the overall market may be down, specific sectors, such as artificial intelligence (AI), remain poised for growth.

Key Players in AI:
Nvidia, Taiwan Semiconductor Manufacturing Company (TSMC), and Alphabet are highlighted as major beneficiaries of the AI trend. The analysis indicates that these companies have robust growth forecasts, making them attractive investments during this correction.

Nvidia: Analysts project a notable revenue increase of 56% for Nvidia in FY 2026, driven by strong demand for its GPUs in AI applications. This promising outlook can enhance investor confidence in owning Nvidia stock. The company's growth trajectory seems to be far from maturity, indicating long-term potential for substantial returns.

TSMC: As a key chip provider for AI workloads, TSMC anticipates a 45% annual growth rate in AI-related revenue, further emphasizing the booming demand in this sector. TSMC's insights into chip demand and revenue growth can make it an appealing choice for investors looking to capitalize on the AI wave.

Alphabet: The inclusion of AI into Alphabet's core business model, especially through its cloud computing segment, is fueling considerable growth. The increase of 30% in Google Cloud's revenue indicates Alphabet's robust positioning within the market. Being involved in both AI and advertising can provide stability and growth opportunities for investors.

While the Nasdaq has regained September levels, these companies are perceived as undervalued based on historical metrics. The mention of trading under 19 times forward earnings for TSMC and Alphabet indicates a buying opportunity as they are relatively cheaper than the market averages.

Stocks: NASDAQ:NVDA NYSE:TSM NASDAQ:GOOGL