3 Artificial Intelligence (AI) Stocks That Look Like Strong Buys Heading Into April
Key Points
Taiwan Semiconductor Manufacturing makes about 70% of the world's processors.
Alphabet's Gemini has 750 million monthly users, and the company recently made a deal with Apple to serve as the underlying AI model for a new version of Siri.
Broadcom's niche in application-specific integrated circuits helped it double its AI sales in the most recent quarter.
- 10 stocks we like better than Taiwan Semiconductor Manufacturing ›
There are many artificial intelligence (AI) stocks to consider buying right now, especially as some tech stocks have pulled back over the past few months. And while some investors are concerned that parts of the AI market look bubbly, there are leading artificial intelligence stocks that would be a mistake to overlook right now.
Here's why investors should consider buying Taiwan Semiconductor Manufacturing (NYSE: TSM), Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), and Broadcom (NASDAQ: AVGO) right now.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
The world's leading processor manufacturer looks cheap
Taiwan Semiconductor, also called TSMC, is the manufacturer of about 70% of the world's processors. That means whenever a leading AI chip design company, like Nvidia, needs processors made, it's hiring TSMC.
As big tech companies pour money into building new data centers, TSMC benefits from all the chip production. Revenue increased 26% in the fourth quarter to $33.7 billion, and earnings per share jumped 35% to $3.14 per American depositary receipt. More growth is on the way, too, with management estimating sales will increase 30% in 2026.
At some point, spending on AI data centers will slow down, of course. That could eventually decelerate some of TSMC's growth, but I think it's too early to bet on the slowdown or to assume the company won't still benefit from its dominance in chip manufacturing. Tech giants are spending a collective $650 billion on capital expenditures this year, mostly for AI, after all.
One great reason to pick up TSMC stock right now is that its price-to-earnings ratio is just 32, making it a good deal compared to the tech sector's average P/E ratio of 37.
Alphabet is taking control of its AI future
After a slow start in the AI race not all that long ago, Alphabet has made up a lot of ground. The company's Gemini chatbot now has 750 million users, and its daily AI mode search queries in the U.S. have doubled since the feature launched.
The company has also made strategic AI moves, like its new partnership with Apple. Gemini will be the underlying AI model for a new version of Siri due out later this year, which will not only help Alphabet expand its AI model to more users but also generate about $1 billion annually for Alphabet.
There have been concerns that AI will disrupt Alphabet's advertising business, and investors shouldn't assume that any company is safe from AI disruptions at this point. But concerns about Alphabet's demise are likely overblown. The company's revenue rose 15% to nearly $403 billion in 2025, and diluted earnings per share increased 34% to $10.81.
And this stock looks like a fantastic deal right now, with a P/E ratio of just 27, well below the tech sector's average.
Broadcom is a niche AI play
If you're looking for an AI chip company that's growing fast -- and doesn't have the name of Nvidia -- Broadcom is a fantastic option. The company's AI sales rose 106% to $8.4 billion in the first quarter (which ended Feb. 1), and non-GAAP (adjusted) earnings per share jumped 28% to $2.05.
And there's a lot more growth expected, with management estimating AI chip sales will reach at least $100 billion in 2027. Broadcom is cashing in on its lead in the niche application-specific integrated circuits (ASICs) market, of which it will hold an estimated 60% by 2027.
Unlike the other AI stocks on this list, Broadcom's shares aren't cheap. The company's stock has a P/E ratio of about 60. But with large tech companies still investing heavily in AI infrastructure and Broadcom holding a leading position in ASICs, the company is poised to benefit from the ongoing expansion of artificial intelligence.
While there will likely be some volatility among AI stocks, these companies have all carved out leads in their respective niches, which should help them stay competitive as the AI race heats up.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,592!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,076,767!*
Now, it’s worth noting Stock Advisor’s total average return is 913% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 24, 2026.
Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Nvidia, and Taiwan Semiconductor Manufacturing and is short shares of Apple. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
Recommended Articles
