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Nvidia is positioned to benefit significantly from the rising investment in AI infrastructure.
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On the other hand, AMD is poised to lead in the CPU sector for data centers, with promising prospects in AI inference.
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Semiconductors from Taiwan are currently undervalued and hold a competitive edge.
The market appears to be stabilizing with the easing of US-China trade tensions. This might present a solid chance to consider adding some significant tech stocks to your portfolio.
Let’s take a closer look at three top technology stocks worth buying this month.
Nvidia (NASDAQ: NVDA) remains a standout in the AI landscape, being a leading provider in graphic processing units (GPUs). These GPUs are foundational for AI infrastructure, enabling the necessary processing power for various AI workloads.
With a market share over 80%, Nvidia’s strength largely stems from its CUDA software platform, which simplifies chip programming for developers. Additionally, its libraries and tools tailored for AI enhance the efficiency of these chips.
Data center spending related to AI is rapidly increasing. Predicted investments from major cloud players like Amazon, Microsoft, and Google are set to hit $250 billion this year to scale up operations for growing AI demands. Companies, including high-tech giants like Meta and OpenAI, are also racing to develop advanced AI models. Moreover, many firms are opting for hybrid cloud approaches to bolster their infrastructure and support internal AI initiatives.
Nvidia anticipates these trends will persist, projecting that capital expenditures in data centers could surpass $1 trillion by 2028.
Currently, Nvidia’s stock appears attractive, trading at a price-to-earning ratio (P/E) of 28 based on analyst estimates, along with a price-to-earnings-growth (PEG) ratio of 0.56, indicating it’s undervalued since PEG below 1 is generally considered promising.
AMD (NASDAQ: AMD), while still a distant second in the GPU market, is thriving in the data center segment. The company has been pushing into AI inference, a market expected to expand significantly beyond just AI training. This emerging opportunity is favorable for AMD.
In its recent earnings call, AMD noted that one of the largest AI model companies relies on its GPUs for a substantial portion of daily inference tasks. Furthermore, many major cloud providers are increasing their use of GPUs for various AI tasks, like search and recommendations.
Alongside its GPU advances, AMD has been gaining traction in the CPU market for data centers too. While it may not be as substantial as GPUs, the CPU segment is also growing rapidly and plays a critical role. With strong leadership in AI inference and its data center CPU growth, AMD presents a solid investment in AI infrastructure, especially given a forward P/E ratio of 27.5.
Another player poised to gain from the ongoing AI infrastructure developments is Taiwan Semiconductor Manufacturing Company (NYSE: TSM), or TSMC. As a leading semiconductor contract manufacturer, TSMC stands to benefit from the surging demand for GPUs and advanced chips.
Most semiconductor firms are focusing on design while outsourcing manufacturing to foundries like TSMC due to the immense capital demands and expertise needed for chip production. TSMC’s scale and technical prowess have distinguished it from competitors, securing its role as a crucial partner for prominent chip designers, including Nvidia. This competitive edge has also allowed TSMC to maintain strong pricing power, contributing to improved profit margins.
The company is actively collaborating with major clients to enhance its manufacturing capacity and expand its operational base, particularly with plans for new facilities in the U.S.
TSMC’s stock is also regarded favorably, boasting a forward P/E of 20.5 and a PEG of 0.62.
Have you ever felt like the opportunity to invest in top-performing stocks slipped through your fingers? If that resonates with you, you’ll want to pay attention.
Occasionally, analysts spotlight certain “double-down” stocks, indicating potential breakout opportunities. If you’re concerned about having missed your chance, now might actually stand as the perfect time to invest before the moment passes.
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Nvidia: An investment of $1,000 since its rise in 2009 would have grown to $350,971. *
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Apple: An initial $1,000 investment made in 2008 could be worth $40,309. *
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Netflix: A $1,000 investment starting in 2004 would now stand at $620,719. *
We are now issuing alerts for “double-down” opportunities on three outstanding companies, available to those who engage with Stock Advisor—so perhaps this is a moment you won’t want to miss.
See the 3 stocks »
*Stock Advisor figures represent returns as of May 12, 2025.
