AI stocks Nvidia and TSM positioned for strong growth in 2025 due to increasing demand

From Nasdaq: 2025-01-11 11:45:00

The rise of artificial intelligence (AI) has led to significant gains in share prices for Nvidia and Taiwan Semiconductor Manufacturing (TSM). Major cloud service companies and governments are driving the demand for AI-specific chips, with Gartner forecasting a 21.5% growth in global public cloud spending in 2025.

Microsoft’s $80 billion investment in AI-enabled data centers signals a strong year ahead for Nvidia and TSM. Capital expenditures from major cloud providers like Meta Platforms, Microsoft, Amazon, and Alphabet are expected to reach $300 billion in 2025, driving the demand for AI chips.

Nvidia and TSMC are increasing chip output to meet the expanding market for AI chips. With Microsoft indicating no supply constraints for AI chips and TSMC doubling chip packaging capacity to 75,000 wafers a month, both companies are well-positioned to capitalize on the growing demand from cloud providers.

Analysts predict a 50% increase in Nvidia’s earnings and a 28% jump in TSMC’s earnings in 2025. The continued focus on expanding capacity to meet demand from cloud providers is expected to drive strong growth for both companies, surpassing current Wall Street expectations.

The Motley Fool is offering a “Double Down” stock recommendation for companies on the brink of success. Past recommendations for companies like Nvidia, Apple, and Netflix have yielded substantial returns. Investors have the opportunity to capitalize on these recommendations now before it’s too late.



Read more at Nasdaq: 80 Billion Reasons Why These 2 Top Artificial Intelligence (AI) Stocks Could Crush the Market Again in 2025