Stocks to Watch Amid Market Correction and AI Surge

Stocks to Watch: With the stock market seeing a correction, Nvidia, AMD, TSMC, Alphabet, and The Trade Desk are highlighted as strong picks. The report suggests these stocks may defy market pessimism, offering investors potential growth despite current uncertainties.

Date: 22-03-2025

AI Rating: 7

The report emphasizes several stocks poised for growth despite the current market correction and uncertainty due to tariffs. Among them, Nvidia, AMD, Taiwan Semiconductor Manufacturing Company (TSMC), Alphabet, and The Trade Desk are highlighted as strong investment opportunities.

Earnings Growth and Revenue Insights: Nvidia is expected to experience remarkable revenue growth of approximately 65% in Q1, which positions it as a lead player in AI infrastructure. The AI arms race is expected to significantly benefit Nvidia and its data center GPUs, resulting in a favorable increase in earnings potential.

AMD is also witnessing a positive revenue trajectory with a 69% increase in data center revenue year over year. However, its total revenue ($3.9 billion) still falls behind Nvidia’s accomplishments. For TSMC, management has projected an impressive 45% compounded annual growth rate (CAGR) in AI-related revenue over the next five years, alongside a near 20% company-wide growth rate.

Alphabet’s Google Cloud revenue increased by 30% in Q4, indicating healthy growth that may provide resilience against economic downturns. Additionally, despite short-term challenges faced by The Trade Desk, its long-term growth prospects remain promising.

Valuation Considerations: The valuation metrics for Nvidia (not provided), AMD (22 times forward earnings), and TSMC (19 times forward earnings) suggest potentially favorable prices relative to their growth outlooks. Alphabet's stock is described as trading for less than 18 times forward earnings, presenting a buying opportunity for investors.

Overall, with favorable revenue growth expectations and strong market positions in their respective segments, the highlighted stocks offer attractive potential for investors despite the current market correction.

Stocks: NVDA AMD TSM GOOGL TTD