From Nasdaq: 2025-06-01 05:15:00

Stocks are nearly flat for the year despite market turmoil, with the S&P 500 showing no significant change. However, long-term prospects remain bright for many companies, offering potential opportunities for investors. Consider shifting focus from short-term gains to long-term growth when making investment decisions.

Nvidia is a leading AI stock, with projections showing a massive increase in data center capital expenditures from $400 billion in 2024 to $1 trillion by 2028. The company stands to benefit significantly from this trend, as it generates the majority of its revenue from GPUs specific to data centers, making it a solid investment choice.

Taiwan Semiconductor Manufacturing is a key player in the AI race, providing advanced chip production services to various high-tech companies. With an expected 45% compound annual growth rate in AI-related revenue over the next five years, along with overall revenue growth, the stock presents an attractive investment opportunity at around 21 times forward earnings.

Alphabet, trading at a mere 18 times forward earnings, is undervalued compared to its peers and the S&P 500. Despite concerns about AI disruption and regulatory issues, the company’s innovative initiatives and potential for growth in the AI space make it a compelling value play for investors looking for long-term opportunities.

Adobe faces similar AI-induced fears as Alphabet, but its integrated generative AI software and steady revenue growth position it as a strong investment option. Trading at around 20 times forward earnings, the stock offers good value, especially considering the company’s share repurchasing activities that can boost earnings per share over time.

Amazon’s profitability is largely driven by Amazon Web Services (AWS), which accounts for a significant portion of total operating profits. With the cloud computing sector expected to grow rapidly in the coming years, AWS will play a crucial role in driving Amazon’s stock performance. Investors can view Amazon as a cloud computing play rather than just an e-commerce company.



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