Three AI Stocks Worth Investing In Now
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11 hours ago
0mins
Source: Fool
- Nvidia's Growth Potential: Nvidia (NVDA), despite being the world's largest company by market cap, is expected to see an 81% revenue growth for FY 2027 and 41% next year, indicating that the market has yet to fully recognize its potential, making it a prime investment opportunity.
- TSMC's Market Position: Taiwan Semiconductor Manufacturing (TSMC), the largest semiconductor producer globally, anticipates its AI chip revenue to grow at nearly a 60% compound annual growth rate, leading to a mid-20% overall revenue growth rate, ensuring its continued success amid high chip supply demand.
- Nebius's Rapid Expansion: Nebius (NBIS), an AI cloud computing company, reported a staggering 684% year-over-year revenue growth in Q1 and expects to reach $7 billion to $9 billion in annual recurring revenue by year-end, showcasing its significant potential in building AI computing resources.
- Timing the Investment: All three companies demonstrate strong long-term growth potential, particularly in the rapidly evolving AI sector, suggesting that investors should consider positioning themselves at current price levels to achieve market-beating returns.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 204.650
Low
200.00
Averages
264.97
High
352.00
Current: 204.650
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Accelerated Strategic Transformation: The introduction of the Vera CPU marks Nvidia's evolution from a GPU supplier to a full-stack AI infrastructure provider, enhancing its market share and customer attachment rates in AI data centers.
See More
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- Positive Market Reaction: Nvidia's stock showed stability during afternoon trading on June 15, 2026, suggesting investor approval of the financing plan, which may further drive stock price appreciation.
- Diverse Use of Funds: The proceeds from this financing are expected to be allocated towards R&D, acquisitions, and infrastructure investments, aimed at strengthening the company's position in the competitive semiconductor market and enhancing long-term profitability.
- Strategic Implications: By raising funds, Nvidia can accelerate technological innovation and maintain a competitive edge in a rapidly changing market environment, further solidifying its market share in AI and high-performance computing.
See More
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- Revenue Growth: The company reported a staggering 684% year-over-year revenue increase in Q1, with Wall Street projecting a 550% revenue growth for 2026 and 225% for 2027, potentially elevating its revenue from under $900 million to $11.2 billion.
- Strategic Partnerships: Nebius has secured investment and partnership from Nvidia, enhancing its market credibility and providing robust technical support, underscoring its significance and potential in the AI cloud computing sector.
- Client Base: Nebius has attracted major clients like Microsoft and Meta, who, despite having their own data centers, opt for Nebius's services to meet the rapidly growing AI computing demands, further driving the company's business expansion.
See More
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- SpaceX Market Performance: SpaceX achieved a market valuation of $1.77 trillion by its third trading day, making it the fifth-largest company globally, indicating strong market demand and investor confidence that could drive future financing and expansion opportunities.
- Index Inclusion Rule Changes: S&P Global modified its Total Stock Market index inclusion criteria by lowering float requirements, facilitating SpaceX's eligibility, although the S&P 500 still mandates a 12-month waiting period, reflecting adaptability to emerging companies.
- Nasdaq-100 Updates: Nasdaq revised its inclusion standards, allowing new IPOs to be added after just 15 trading days, meaning SpaceX will soon be included, which is expected to attract more investor attention to its stock performance.
- Float Limitations: With only about 4% of shares issued, SpaceX's weighting in indices is constrained, despite a market cap exceeding $2.6 trillion, resulting in investors holding approximately $64 worth of SpaceX stock in the QQQ ETF, highlighting the impact of float on index investments.
See More
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- Rising Inflation Data: U.S. headline inflation reached 4.2% in May, the highest since April 2023, with energy costs up 23.5% year-over-year, compelling investors to reassess their allocation strategies in response to the ongoing high inflation environment.
- Tech Concentration Risk: The Vanguard S&P 500 ETF has a 39% allocation to tech stocks, with the top ten holdings also comprising 39% of the portfolio, indicating that excessive concentration may limit upside potential, especially in a high-inflation context.
- Dividend Growth Strategy: The Schwab U.S. Dividend Equity ETF focuses on companies with at least ten years of dividend payments, achieving an annual dividend growth of about 10% over the past decade, which helps maintain purchasing power even if inflation remains above 4%, showcasing its defensive investment advantage.
- AI Spending Warning: Goldman Sachs noted that capital expenditures for major cloud operators are projected to reach approximately $770 billion by 2026, and if these companies max out their cash flow spending, it could negatively impact the growth outlook for the AI sector, limiting short-term upside potential.
See More
SpaceX's Market Debut and Index Inclusion Impact
- IPO Valuation: SpaceX debuted at a valuation of $1.77 trillion, becoming the fifth-largest company globally, reflecting its strong market position and investor confidence in the aerospace sector.
- Index Inclusion Rule Changes: Major index providers adjusted their inclusion rules, with S&P Global easing float requirements, facilitating SpaceX's entry into relevant indexes, although the S&P 500 still requires a 12-month wait.
- Float Limitations: SpaceX issued only about 4% of its shares, limiting its weighting in most indexes; despite a market cap exceeding $2.6 trillion, only approximately $125 billion is available for trading.
- Future Weight Adjustments: As lockup periods expire, SpaceX's index weighting will gradually increase, but with Elon Musk holding about 40% of shares, its float may remain below the typical 50%-60% seen in standard IPOs.
See More
