Growth stocks continue to thrive on Wall Street, with the ongoing artificial intelligence (AI) trend driving impressive performance. Nvidia and Taiwan Semiconductor are standout performers in the AI boom, poised for significant growth in 2026 and beyond. Both companies are crucial players in advancing AI technology and addressing energy consumption challenges in data centers.

Nvidia’s dominance in computing units and Taiwan Semiconductor’s chip manufacturing prowess underscore their pivotal roles in the AI industry. Both companies are integral to the AI arms race, with Nvidia’s GPUs and Taiwan Semiconductor’s production capabilities enabling the advancement of generative AI technology. Their contributions are essential for powering the growing demand for high-performance computing chips in the AI megatrend.

Taiwan Semiconductor’s innovation in chip design is tackling AI’s energy consumption issue, offering a new chip generation that reduces power consumption by 25% to 30%. This advancement not only enhances efficiency but also addresses the increasing power demands of AI hyperscalers. With Nvidia estimating global data center expenditures to reach $3 trillion to $4 trillion by 2030, the outlook for both companies remains strong in the AI market.

Despite perceptions of being expensive, both Nvidia and Taiwan Semiconductor are undervalued based on the PEG ratio, which combines growth and valuation. With the AI boom set to continue driving growth, these companies present attractive investment opportunities. As AI hyperscalers ramp up spending on data centers, Nvidia and Taiwan Semiconductor are well-positioned to capitalize on the expanding market in 2026 and beyond.

Investors considering Nvidia should note the insights from the Motley Fool Stock Advisor analyst team, who recently identified the top 10 stocks for investors to buy now. While Nvidia wasn’t on the list, historical returns from previous recommendations highlight the potential for significant growth. Stock Advisor’s market-crushing performance underscores the value of informed investing decisions and community collaboration in navigating the stock market landscape.

Read more at Yahoo Finance: Here Are My 2 Top Growth Stocks to Buy Now