From Nasdaq: 2025-06-12 09:30:00

The AI trade is gaining momentum on Wall Street, with companies like Nvidia, Taiwan Semiconductor, and Vertiv offering reasonable valuations despite strong growth forecasts. These companies play vital roles in the AI ecosystem, providing essential hardware and infrastructure for advanced computing.

Taiwan Semiconductor leads the pack with a 40% year-over-year revenue increase and expects continued growth in sales and earnings driven by AI chip demand. With a Zacks Rank #3, TSM’s valuation at 23.1x forward earnings is attractive for its strategic importance and growth potential.

Nvidia remains a dominant force in AI hardware design, with projected earnings growth of 28.2% annually fueled by demand for AI infrastructure. Trading at 36x forward earnings, Nvidia’s valuation is discounted compared to historical levels, offering a high-growth opportunity.

Vertiv, a key player in data center infrastructure for AI, has rebounded after a correction and is poised for growth with sales expected to rise in the high teens annually. Despite a premium valuation of 30.6x forward earnings, Vertiv offers momentum, earnings power, and long-term upside in the AI boom.

Investors looking to capitalize on the AI boom can consider Nvidia, Taiwan Semiconductor, and Vertiv as grounded opportunities with strong growth prospects and reasonable valuations. These companies offer a compelling path to participate in the transformative AI trend without overpaying for potential gains.



Read more at Nasdaq: Are AI Stocks Overpriced? These 3 Leaders Look Cheap (NVDA, TSM, VRT)