Top 3 Trillion-Dollar Stocks to Purchase Now (Excluding Nvidia)
As the artificial intelligence (AI) sector evolves, investors are exploring alternatives to Nvidia, long considered the leading stock in this field. There are emerging competitors poised to disrupt the landscape, and some stocks stand out for potential investment right now.
Key Players in AI Chip Technology
Nvidia has dominated the GPU market for AI processing. However, new developments indicate that this might change soon. A potential deal between Alphabet and Meta Platforms could introduce Tensor Processing Units (TPUs) to the market, leading to significant shifts in the AI chip sector.
1. Alphabet Inc. (GOOGL)
Alphabet, recognized primarily for its advertising services, also has a growing cloud computing business. The company’s revenue in the third quarter amounted to $102 billion, with $74 billion generated from ads. With the potential sale of TPUs, Alphabet could tap into new revenue streams that investors have not yet fully considered.
- Current Price: $315.61
- Market Cap: $3,864 billion
- Gross Margin: 59.18%
- Dividend Yield: 0.26%
2. Broadcom Inc. (AVGO)
Broadcom is set to benefit significantly from any sales of TPUs by Alphabet. The company has seen a surge in AI-related revenue, with projections of $6.2 billion in Q4 of fiscal 2025. If Alphabet commences selling TPUs, it will pay Broadcom for each unit purchased, thus enhancing Broadcom’s financial standing.
- Current Price: $386.18
- Market Cap: $1,903 billion
- Gross Margin: 63.13%
- Dividend Yield: 0.59%
3. Taiwan Semiconductor Manufacturing Company (TSM)
Taiwan Semiconductor (TSMC) acts as a crucial player in the AI hardware market. As the largest chip fabrication company, TSMC benefits from any increased demand for chips, ensuring its revenue grows irrespective of which firm’s chips are in demand. Currently, TSMC stock appears attractive, trading at a lower premium compared to its peers.
- Current Price: $288.56
- Market Cap: $1,512 billion
- Gross Margin: 57.75%
- Dividend Yield: 0.99%
Conclusion: Consider These Stocks
Although Nvidia remains a significant player in the AI market, the landscape is shifting. Investors should consider Alphabet, Broadcom, and Taiwan Semiconductor as strong alternatives. The potential sale of TPUs could alter the competitive dynamics, making these stocks attractive options for those looking to invest in the future of AI technology.
