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Nvidia’s stock is surprisingly affordable, especially considering its impressive growth in recent years.
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TSMC seems to be in a great position to benefit from its ongoing AI infrastructure developments.
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Salesforce, although currently underrated, has solid foundations to emerge as a leader in the AI agent sector.
Artificial Intelligence stocks have been propelling the market upwards, yet there are still some hidden gems worth considering. If you’re looking to invest around $5,000, splitting it into three promising AI stocks may be a good strategy. Let’s explore a few that could be worth your time.
As for Nvidia (NASDAQ:NVDA), it’s certainly one of the standout growth stories in the market, and its valuation remains quite appealing. The stock currently trades for under 25 times the expected earnings for next year, and its price-to-earnings growth ratio (PEG) is below 0.7. Generally speaking, a PEG under 1 suggests that the stock is potentially undervalued.
This appears to be a bargain for a company that recently reported a staggering 62% revenue increase last quarter and is one of the main winners in the AI infrastructure space.
Turning to Taiwan Semiconductor Manufacturing (NYSE:TSM), the demand for AI chips is projected to surge at an impressive annual growth rate of around 40% in the coming years. Given that Nvidia’s graphics processing units (GPUs) are central to AI functions, it seems they should be able to keep pace with market growth. Plus, the CUDA software platform remains a strong asset.
TSMC is recognized as a front-runner in AI technology and continues to boast an attractive stock valuation, with a forward P/E ratio of less than 20 times estimated earnings for 2026. The company also experienced nearly 41% revenue growth in the last quarter.
Known for its advanced logic chip manufacturing, TSMC enjoys a unique position as the only foundry capable of producing chips efficiently at smaller node sizes and with minimal defects. Companies are always looking to reduce node sizes to create more powerful, energy-efficient chips.
While other competitors face challenges, TSMC’s latest 2-nanometer chips have surpassed expectations, prompting the company to plan ahead for a facility to produce even smaller, 1.4-nanometer chips. This solidifies TSMC’s stronghold in advanced chip manufacturing as they ramp up production to meet growing demand while also increasing prices for their products, meaning good things lie ahead.
On another note, software sectors have encountered difficulties lately, especially since AI gained traction, including Salesforce (NYSE: CRM), which now trades at a forward P/E of 20x and a low PEG.
The firm, while not benefiting as much from AI as others in the infrastructure landscape, has the potential to excel in AI agents—an emerging field that involves AI performing tasks autonomously rather than merely answering questions. If agent AI evolves as anticipated, it might significantly contribute to creating a virtual workforce.
That said, a hurdle for AI is its occasional inaccuracies, which can be troublesome for AI agents. Yet, it’s widely known that AI tends to perform better with well-organized data. Salesforce has been busy establishing itself as a reliable source for the data needed for these agents to operate efficiently.
The company excels at breaking down data silos across different departments, providing a cohesive view for employees, especially in customer service. Its Data 360 solution is aimed at collecting and organizing data from various third-party suppliers, including cloud services. Moreover, their recent acquisition of Informatica enhances access to traditional databases.
With all these assets in place, Salesforce is poised to become a major player in the agent AI space and could drive its growth in the years to come.
Before making any decisions about investing in Nvidia, it’s worthwhile to consider other options.
As noted by the analysts, there are ten stocks deemed to have stronger potential than Nvidia at this time. Each of these stocks is identified for its capability to yield considerable returns in the coming years.
When reflecting on past recommendations, if someone had invested $1,000 in Netflix back in 2004, for example, it would now be worth a staggering $488,222. Similarly, investors in Nvidia since 2005 would see their investment at a value of over $1 million today.
It’s important to note that the stock advisor service boasts an impressive average return of around 969%, which outperforms the S&P 500 significantly.
*It’s worth mentioning that stock advisor will resume on January 9, 2026.
