-
The race in artificial intelligence is set to keep expanding and intensifying.
-
Nvidia and Taiwanese semiconductor companies are crucial for providing the necessary chips.
-
Companies like Alphabet and Mercadolibre are making significant strides in incorporating AI across their operations.
With May rolling in, the old adage of “sell in May and go away” doesn’t seem to hold as true this year. The market presents promising opportunities, suggesting that the stock market may rebound due to recent transactions, particularly as tariffs evolve in the coming months.
I’ve identified four standout stocks that I believe are strong contenders for long-term success, regardless of what happens in the short term.
So, where would one invest $1,000 right now? Analysts have pointed out ten compelling stocks to consider buying at this time.
I think it’s no surprise to find Nvidia (NASDAQ: NVDA) on my list. The firm’s GPUs are powering the AI arms race. Despite some investors losing focus on this generational shift in favor of tariff discussions, Nvidia aims to make significant gains this year.
Wall Street analysts are projecting a revenue growth of 54% for fiscal year 2026 and 23% for 2027. If the data center market accelerates, the actual growth could surpass these estimates.
In 2024, capital expenditures for data centers hit about $400 billion, with projections indicating an increase to $1 trillion by 2028 for Nvidia’s projects.
Yet, even with this optimistic outlook, Nvidia’s stock is trading at roughly 25 times its expected revenues, still somewhat shy of expectations. For this reason, I find it a good stock to consider picking up in May, particularly before the release of first-quarter earnings later this month.
Then there’s Alphabet (NASDAQ: GOOG), which has already shared its first-quarter revenue. Management expressed optimism about the company’s direction, acknowledging tariff-related challenges but remaining confident about its overall business trajectory and AI integration.
However, there’s a shadow cast by ongoing trade disputes and lawsuits claiming that Alphabet operates illegal monopolies—one over its search engine and another in advertising. These issues could pose long-term headwinds for the company, especially since the lawsuits are headed to the Supreme Court, with uncertain outcomes.
Despite these challenges, Alphabet’s stock is reasonably valued, trading at around 16.7 times revenues compared to a more than 20 times average for the S&P 500. This suggests that the market might have already absorbed some of the worst-case scenarios for the company.
On the semiconductor front, Taiwan Semiconductor Manufacturing (NYSE: TSM) has emerged as an unseen beneficiary of the AI boom, producing chips for numerous industry leaders. Since companies like Nvidia don’t manufacture their own chips, they rely on foundries like TSMC.
During a recent earnings call, TSMC acknowledged the uncertainty brought on by tariffs but maintained its revenue guidance for 2025. The company is expected to see a steady revenue growth of about 20% annually over the next five years.
Even with a positive outlook, TSMC’s shares are trading at just 17.8 times expected revenue, making it quite affordable by historical standards. May could be an ideal time to acquire shares in this promising long-term player.
If tariffs or similar concerns aren’t off-putting for your portfolio, you might consider acquiring shares of Mercadolibre (NASDAQ: MERI). The firm stands as a major player in Latin America’s e-commerce landscape, effectively merging elements of PayPal and Amazon.
Over the past several years, Mercadolibre has consistently boosted both its revenues and profits, and despite being listed in the U.S., it primarily focuses on the Latin American market, which somewhat insulates it from U.S. policy changes.
This solid growth trajectory is expected to continue, especially since Latin America trails behind the U.S. in e-commerce development.
Have you ever had that feeling of missing the boat on great stocks? If so, this might be something you’ll want to pay attention to.
In rare instances, analysts have highlighted certain “double down” stocks that appear poised for growth. If you’re concerned that you might have missed your window to invest, now could be the time to act before it’s too late.
-
Nvidia: A $1,000 investment when it doubled in 2009 would now be worth about $296,928!
-
Apple: A $1,000 investment from 2008 would have grown to around $38,933!
-
Netflix: If you invested $1,000 when it doubled in 2004, it would now be approximately $623,685!
Now, we’re offering alerts on three exceptional stocks that may be available through our Stock Advisor program. This might be an opportunity you don’t want to overlook.
