Tech Bargains: Nvidia, TSMC, and Alphabet Poised for Growth

With recent market pullbacks, three tech stocks—Nvidia, TSMC, and Alphabet—are emerging as potential buys. Their robust revenue growth and strong market positions make them attractive options for investors looking to capitalize before the next bull run.

Date: 03-04-2025

AI Rating: 8

Market Trends Indicate Opportunities
The ongoing market pullback presents an opportunity for investors to acquire top technology stocks at reduced prices, specifically Nvidia, TSMC, and Alphabet. Each of these companies showcases strong growth potential driven by the burgeoning demand for AI and cloud computing capabilities.

Nvidia's Remarkable Growth
Nvidia has shown an extraordinary revenue surge of 383% over the last two years, moving from $27 billion in fiscal 2023 to an anticipated $130.5 billion in fiscal 2025. Analysts forecast that revenue will grow another 50% in the coming fiscal year, which is indicative of the strong demand for its leading AI infrastructures and GPUs. This performance positions Nvidia favorably, making its current valuation seem attractive.

TSMC's Competitive Edge
Taiwan Semiconductor Manufacturing (TSMC) offers another compelling case, trading at a forward P/E of 18 and a PEG ratio of 0.6. TSMC's leadership in advanced chip manufacturing and its essential role in the semiconductor value chain is enhancing its growth prospects. The company is likely to benefit from continued AI chip demand while concurrently possessing pricing power that could lead to margin expansion.

Alphabet's Diverse Growth Drivers
Alphabet also appears undervalued with a forward P/E of 17. Its Google Cloud segment is now the fastest-growing area, with a 30% increase in revenue last quarter and an impressive 142% rise in operating income. The acquisition of Wiz is expected to bolster its cybersecurity capabilities significantly, improving its competitive market position. Furthermore, Alphabet's initiatives in the robotaxi market suggest forward-thinking strategies that could yield additional revenue streams.

Overall, these companies exhibit substantial growth metrics and align well with current market trends, making them potentially good investments as the market pivots towards recovery.

Stocks: NVDA TSM GOOGL GOOG