These tech giants are already large, but they still have opportunities for growth.
If you’re concerned that you’ve missed out on investing in artificial intelligence (AI) stocks, there are still several good options at reasonable prices. Many of these companies are established players in the tech sector.
As we approach 2026, three AI stocks poised for growth are Alphabet, Amazon, and Taiwan Semiconductor Manufacturing. Here’s why investing in these tech giants remains a viable option.
Alphabet
Alphabet is noteworthy despite being one of the world’s most valuable companies, with a market cap of $3.7 trillion. While it is not the most valuable company—currently held by Nvidia at $4.3 trillion—Alphabet still has potential for further growth. Some investors have been skeptical about its dominance in search amid the rise of AI chatbots, but this skepticism may present an opportunity.
AI advancements have enhanced Alphabet’s Google Search and added value to its YouTube platform. The company also has a growing robotaxi initiative, Waymo, and is expanding its cloud business and chip production. Its stock trades at a forward price-to-earnings ratio of 28, which is moderate compared to industry averages, suggesting it could command a higher valuation moving into next year.
Amazon
Amazon, valued at $2.4 trillion, is another solid choice. Its stock price has decreased by 4% over the past year, potentially indicating that it deserves a higher valuation. While it is best known for its online marketplace and Amazon Web Services (AWS), it also has a robotaxi project called Zoox, which, although not as prominent as Waymo, has a distinct design that could appeal to consumers.
Amazon has expanded its same-day delivery service for groceries, creating opportunities to gain market share from competitors like Walmart. This diversification and growth potential suggest that Amazon’s stock, which trades at a forward P/E of 27, could increase in value.
Taiwan Semiconductor Manufacturing
In contrast to Alphabet and Amazon, Taiwan Semiconductor Manufacturing (TSMC) has a more focused business model. The company produces chips for multiple tech companies, including Nvidia. TSMC’s low-cost operations make it competitive against other manufacturers like Intel. Its essential role in the AI sector further strengthens its position.
In its latest quarterly report, TSMC revealed a 30% increase in revenue and a 39% rise in diluted per-share profits. With an impressive operating margin of around 50% and a current market cap of $1.5 trillion, TSMC’s stock has gained over 40% this year. Notably, it has a forward P/E ratio of just under 24, making it the most affordable option among the stocks discussed.
In conclusion, despite their already massive sizes, Alphabet, Amazon, and TSMC continue to present investment opportunities as they evolve and capitalize on emerging technologies.
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