2 Top Tech Stocks to Buy Right Now

Tech stocks have been some of the best-performing stocks over the past decade. As a result, eight of the world's 10 most valuable public companies are now tech companies.

Admittedly, 2025 has gotten off to a rough start to 2025 for many of these top companies. Yet it's not time to panic. If anything, this is a time to scoop up some great companies that are trading at relative discounts.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

If you're looking to add tech stocks to your portfolio, consider the following two companies. They're in good positions to return great long-term value.

Image source: Getty Images.

1. Taiwan Semiconductor Manufacturing Company

Taiwan Semiconductor Manufacturing Company (NYSE: TSM), also referred to as TSMC, is one of the world's most important tech companies. It's the world's largest semiconductor foundry, with a market share in contract chipmaking space of around 67%.

For perspective, the second-largest semiconductor foundry is Samsung, which has a roughly 7% market share.

Instead of designing and producing its own semiconductors for general sale, TSMC manufactures chips on behalf of other companies. They come to TSMC with the designs, and it uses its top-of-the-line manufacturing facilities to bring those products to life. Its success with this model has made TSMC the go-to chip fabricator for well-known companies like Apple, Nvidia, Advanced Micro Devices, and dozens of others.

These high-dollar clients have treated TSMC well, too. In the first quarter, TSMC's revenue increased 35% year over year to $25.5 billion, and its cash from operations increased 43%. Both gains were continuations of impressive runs over the past five years.

TSM Revenue (Quarterly) data by YCharts.

The next few years should be lucrative: Management estimates that TSMC's revenue will grow at a compound annual rate of 20% from 2024 to 2029. If that forecast proves accurate, TSMC will be bringing in well over $200 billion by 2029.

Much of this optimism stems from the surging demand for AI-capable semiconductors as the broader AI boom continues. TSMC's high-performance computing (HPC) segment, which contains its AI-related semiconductors, accounted for 59% of the company's revenue in Q1. In Q1 2024, it was only 46%.

TSMC is in a complex spot geopolitically due both to the tense relationship between Taiwan and China and the ongoing U.S. push to boost domestic manufacturing. How all those issues play out remains to be seen, but TSMC has been proactively expanding its manufacturing footprint in the U.S. to hedge against some of these risks.

2. Alphabet

Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), the parent company of Google, YouTube, Waymo, and others, is one of the world's most valuable companies. However, its stock has been stagnant recently: It's up by less than 1% in the past 12 months (through June 9).

There are several reasons investors seem hesitant about Alphabet, starting with their fears of how recession or economic slowdown would impact its business. Of the $90.2 billion in revenue Alphabet made in Q1, 74% came from advertising. And when the economy is less than ideal or appears to be headed in that direction, advertising is one of the first budget lines that companies cut.

The cyclical nature of Alphabet's business may not be comfortable for investors who prefer more predictable income, but it doesn't take away from the company's long-term value. Alphabet has consistently delivered impressive growth, despite the bumps in the road.

GOOGL Revenue (Quarterly) data by YCharts.

If Alphabet wants to maintain that trend, it will rely a lot on the growth of its cloud service. So far, so good. In Q1, Google Cloud's operating income (profit from core operations) grew 142% year over year to $2.2 billion. This was a significant milestone in the platform's pursuit of sustained profitability.

Another concern among investors is the uncertainty about how Alphabet will fare in the ongoing antitrust cases brought against it by regulators. The final outcomes of these court cases likely won't be clear for years, but Alphabet's diversified business and ability to adapt put it in a solid position.

Trading at just 18.3 times its forward earnings (the S&P 500 is currently around 21.7), there's much more upside to Alphabet's stock than downside. It's a stock I would definitely consider buying at current prices.

Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Stefon Walters has positions in Apple and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.