4 Chip Stocks That Look Like Brilliant Buys

Chip stocks are making investors a ton of money right now. These businesses are booming because they're direct beneficiaries of the AI buildout. For them, there's no waiting to see what the return on investment actually is; it's here right now. That makes these stocks great to buy and hold, and I've got a few of them that look like solid picks now.

The stocks I'm eyeing are Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), Taiwan Semiconductor (NYSE: TSM), and Micron (NASDAQ: MU). All four of these have performed phenomenally over the past few years, but there's still more ahead.

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1. Nvidia

Nvidia was the original chip investment in the AI arms race. It made good on the original pick by delivering huge growth early and often, although some investors thought that could be going away in the middle of last year. Now, Nvidia continues to post impressive revenue results, including 85% growth during its first quarter.

Despite that strong growth rate, Nvidia trades at a pretty cheap 24 times forward earnings. If Nvidia can continue delivering solid results like this throughout the remainder of 2026, I have no doubt that the stock will start rising and make investors a solid chunk of change.

2. Broadcom

Nvidia is focused on providing broad computing devices. Broadcom is challenging that approach by offering custom AI chips that are designed with the end user in mind. There are several advantages to these chips, but it mostly comes down to being more cost-effective than GPU-based training.

This isn't a major business for Broadcom today, but by the end of next year, it could be generating more than $100 billion in annual revenue from its custom AI chips. That's a major boost, as Broadcom had less than $70 billion in revenue over the past 12 months. Custom AI chips are becoming a larger part of Broadcom's business, and it's a top reason to buy today.

3. Taiwan Semiconductor Manufacturing

Neither Nvidia nor Broadcom has the capability to produce chips themselves, so they farm that work out to a company like Taiwan Semiconductor Manufacturing (also known as TSMC). The company is the largest logic chip producer in the world, and the chips it makes are found in devices all around the world. TSMC is a major AI chipmaker, and with the enormous amount of money being spent on AI infrastructure, it's doing great. Management believes that its AI-related chip revenue will rise at nearly a 60% compound annual growth rate (CAGR) from 2024 to 2029.

AI chips aren't the only part of TSMC's business, but nothing else is growing quite like AI is. Still, TSMC is posting strong revenue growth, and Wall Street analysts project over 35% growth this year. That's a ton of growth in a short time frame, and with TSMC's neutral position, it makes for a great chip stock to buy now and hold onto for the remainder of the AI buildout.

4. Micron

Last on the list is Micron, the world's newest $1 trillion company. Micron and TSMC are two similar companies, but Micron makes memory chips. There's a major shortage of memory chips right now, which is causing the price to spike. Micron is making a killing from these high memory chip prices, and with no alleviation in sight, this trend could continue for some time.

Micron is the fastest-growing of all four companies on this list, and Wall Street expects Micron to deliver more than 260% revenue growth next quarter. That's unreal growth, and will likely last for some time due to the massive shortage of memory chips. As long as there is a shortage of memory chips, Micron will be a great AI chip stock to buy and hold.

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