3 No-Brainer Stocks to Buy If Data Center Expenditures Hit $3 Trillion by 2030

Source Motley_fool

Key Points

  • Nvidia holds the largest market share in the AI compute market.

  • Micron and Taiwan Semiconductor are critical suppliers to Nvidia and its peers.

  • 10 stocks we like better than Nvidia ›

It's no secret that the artificial intelligence (AI) hyperscalers are dumping billions of dollars into data centers to provide enough computing power to train their AI models along with running existing workloads. There's not enough computing capacity to go around, and it will be several years before there is enough to meet the demand of an AI-first economy. Nvidia (NASDAQ: NVDA) believes that AI spending will grow to $3 trillion to $4 trillion annually by 2030, which indicates a massive growth runway.

If that projection pans out, there are a handful of stocks that are no-brainer buys -- namely, Nvidia, Taiwan Semiconductor (NYSE: TSM), and Micron (NASDAQ: MU). All three of these stocks are set to cash in big time if data center capital expenditures hit that level, and each looks like a solid investment to make right now.

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

Tech working in a data center.

Image source: Getty Images.

Nvidia

Nvidia is clearly the market leader in terms of AI computing units. While the competition is getting stiffer, Nvidia holds a massive market share lead that cannot be topped. During the second quarter, it generated $96 billion in revenue, with the bulk of that coming from data center products. Next quarter, that figure is expected to rise to $108 billion. Nvidia is far from done growing too. During its last earnings call, it told investors that it expects 70% revenue growth during 2027. With the AI build-out expected to intensify through 2030, there's a monster runway for Nvidia to grow into.

However, the market doesn't respect this projection. Nvidia trades for an incredibly cheap price tag of less than 15 times next year's earnings.

NVDA PE Ratio (Forward 1y) Chart

NVDA PE Ratio (Forward 1y) data by YCharts.

If Nvidia hits all analyst projections, and trades for 30 times earnings at the end of next year (an entirely reasonable valuation for a company growing that fast), the stock would be primed to double. That makes it a smart buy now, and I think investors will be well rewarded for buying Nvidia shares today.

Taiwan Semiconductor and Micron

Nvidia doesn't make any of the components that go into its chips; it just designs them. That's where Taiwan Semiconductor and Micron come in. Both of these companies are chip foundries, but they focus on different types of chips. Taiwan Semiconductor produces logic chips, while Micron makes memory chips.

Each of these companies is vital to the function of computing chips like Nvidia, but also for its competitors. There aren't a lot of options in the chip foundry world, so most companies end up working with these two. That makes them fairly neutral investments in the AI race, and if you believe that Nvidia is primed to lose market share, then these two hedge that bet.

Micron and Taiwan Semiconductor may not have the upside that Nvidia or its peers have. Still, they are also pretty much guaranteed to continue rising if AI data center capital expenditures continue to rise. There are several projections, including Nvidia's, that say this, which makes it a pretty solid investment thesis.

Right now, Micron is producing stronger growth than Taiwan Semiconductor. That's because the memory chip space is in a serious supply crunch, and chip prices are skyrocketing as a result. This won't last forever, but as of now, Micron looks to have more upside for this reason. Still, Taiwan Semiconductor is in a great spot, as it holds a dominant 72.5% revenue share in the chip foundry space as of Q2 2026.

Both companies are great investments and make for a great diversification bet alongside Nvidia. All three of these stocks are slated to cash in if the AI race ramps up through 2030. I'm a firm believer that that will happen, making these three stocks excellent buys now.

Should you buy stock in Nvidia right now?

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Keithen Drury has positions in Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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