2 Magnificent Artificial Intelligence (AI) Stocks to Buy in 2025

The artificial intelligence (AI) investing sector is a gold mine for finding companies with market-beating potential. Nvidia (NASDAQ: NVDA) and Taiwan Semiconductor Manufacturing (NYSE: TSM) are among the stocks that I think can outperform the market over the next five years.

Nvidia is a stock that has made plenty of people rich. If you had invested $10,000 in Nvidia a decade ago, you’d now have about $2.7 million. Unfortunately, we don’t have a time machine to capture those returns, but Nvidia’s future looks bright.

Nvidia makes graphics processing units (GPUs), which are used to process the intense calculations necessary to train AI models. GPUs have a unique ability to process multiple calculations in parallel, which lets them outperform traditional CPUs. While other competitors in the GPU market exist, Nvidia’s products outperform them.

Wall Street analysts expect Nvidia’s revenue to increase by about 51% in its fiscal 2026 (ending January 2026). That indicates that Nvidia’s growth is far from over. Driving this growth is increased client spending as well as a ramp-up of its next-generation architecture, Blackwell. Blackwell GPUs drastically outperform the previous-generation Hopper GPUs and provide a significant reason to upgrade. Furthermore, GPUs tend to have a lifespan of about three to five years, so a replacement cycle may start soon.

Additionally, Nvidia isn’t the expensive stock it was once portrayed to be. The stock trades for 54 times trailing earnings, which isn’t that much of a premium compared to some of its big tech peers. Nvidia is growing significantly faster than Amazon (48 times earnings), Apple (42 times earnings), and Microsoft (36 times earnings), yet only holds a slight valuation premium to those three.

NVDA PE Ratio data by YCharts

Nvidia is still a great AI stock to own, and I’m confident it can provide the market-beating returns investors are looking for over the next five years.

Moving down the value chain, Taiwan Semiconductor makes microchips within Nvidia GPUs. TSMC makes chips for many more customers than…

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