Four AI-Focused Stocks Worth Investing in Instantly
In the ever-evolving world of technology, four major players are making significant strides in the realm of Artificial Intelligence (AI): Nvidia, Taiwan Semiconductor Manufacturing Company (TSMC), Alphabet (Google), and Amazon. As of August 2025, these AI-related stocks are experiencing strong market trends and notable performance.
Nvidia continues to be a central figure in the AI stock market, contributing significantly to the stock market gains in 2025. The company, one of the "Magnificent Seven" tech giants, is responsible for approximately 60% of stock-market gains this year. The AI hype has boosted its valuation and the overall S&P 500 index valuation [3].
TSMC, another essential player in the chipmaking industry, has experienced robust growth. Over the past three years, its shares have soared by about 174%. TSMC's critical role as a chip foundry supplier for AI hardware companies, such as Nvidia, has driven this growth. Despite this impressive growth, TSMC is considered relatively undervalued compared to other AI and semiconductor stocks, making it an attractive investment opportunity [4].
Alphabet (Google) and Amazon are also recognised as top AI stocks by Morningstar. Both companies are projected to potentially reach market valuations of $3 trillion within six quarters, indicating high investor confidence and growth expectations linked to their AI business expansions [2][5].
Amazon has more than 1,000 generative AI services and applications in progress or built. The company's new generative AI model, DeepFleet, has improved the travel time of its robotic fleet through its fulfillment network by 10%. Amazon's net sales grew by 9% year over year to $155.7 billion in Q1 2025, and its EPS growth was particularly impressive, jumping 62% to $1.59 in the same quarter [1].
Google's AI initiatives are also noteworthy. Google Gemini, while far behind ChatGPT, is the third-largest AI chatbot with a 13.5% market share. Google Search results now feature AI Overviews, which have 1.5 billion users per month. Google Search accounted for 56% of Alphabet's revenue in Q1 2025 [1].
Nvidia's graphics processing units (GPUs) are a crucial part of generative AI infrastructure. As the largest AI chipmaker in the world, with a market cap of $4.2 trillion as of July 18, 2025, Nvidia is driving the AI revolution [6]. The company is also the largest company in the world by market cap.
In Q1 2025, TSMC reported $25.5 billion in net revenue, up 35% year over year. TSMC's profits also increased, with earnings per share (EPS) increasing 54% to $2.12 in the same quarter [1]. Amazon is the largest manufacturer of mobile robotics and hit a major milestone last month when it deployed its one-millionth robot.
AI hyperscalers are investing heavily in data centers, with spending expected to rise from $430 billion in 2024 to $1.1 trillion by 2029. Android, owned by Google, holds a 74% share of the mobile operating system market as of June 2025, and Google Gemini is now the default AI assistant on devices running Android 10 or later [1].
Despite trading at about 37 times earnings, Amazon is considered a quality AI stock to have in your portfolio. Trading at less than 28 times earnings, TSMC is considered relatively undervalued compared to other AI and semiconductor stocks. Alphabet trades at less than 21 times earnings, cheaper than the S&P 500 index [1].
Despite some market volatility due to external factors like tariffs and geopolitical developments, these firms continue to be at the forefront of AI-driven growth and investor interest in 2025 [2][3][4][5].
[1] [Source 1] [2] [Source 2] [3] [Source 3] [4] [Source 4] [5] [Source 5]
- Investing in the AI market, particularly in Nvidia, has yielded significant returns, as the company is responsible for approximately 60% of stock-market gains in 2025, making it a key player driving the AI revolution.
- In the field of finance and technology, AI-related stocks like TSMC, Alphabet (Google), and Amazon are projected for remarkable growth, with TSMC, while trading at less than 28 times earnings, being considered relatively undervalued compared to other AI and semiconductor stocks, making it an attractive investment opportunity.
