There is little question that artificial intelligence has been a central investing theme over the last two years. Nearly $20 trillion in market capitalization was added to the S&P 500 during that time, mostly as a result of AI stocks, a good portion of which were the Magnificent Seven stocks.
While that group of stocks is down 9% on average in 2025 — only Meta Platforms (NASDAQ:META) is in the green this year — AI remains a powerful driving force for growth.
24/7 Wall St. Insights:
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AI has driven the stock market to new heights over the past two years and should continue to power growth in the years ahead.
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The industry is still in its infancy and will experience growing pains, such as Nvidia (NVDA) tumbling 15% so far this year. The long-term outlook remains bright.
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Anthropic, the AI shop financially backed by Amazon (NASDAQ:AMZN), just closed a $3.5 billion round of financing that values it at $61.5 billion, nearly quadruple its valuation last year, while Elon Musk is looking to raise money for his xAI that would value it at $75 billion, a $35 billion increase from just two months ago. CoreWeave, a company that sells cloud-based processors from Nvidia (NASDAQ:NVDA) to customers including Meta and Microsoft (NASDAQ:MSFT), just filed paperwork for an IPO.
Of course, Nvidia is having a rough year so far, with shares down 15%. China’s AI lab DeepSeek and the start of a new global trade war have weighed heavily on its stock.
Yet with so much opportunity in this still nascent industry, if you have $3,000 to invest today, and don’t need it to pay bills or for emergencies, the two stocks below are excellent AI businesses to buy right now.
Taiwan Semiconductor Manufacturing (TSM)
Taiwan Semiconductor Manufacturing (NASDAQ:TSM) is the first AI stock you should be buying especially after yesterday’s announcement of a $100 billion investment to build new chipmaking factories in the U.S.
This move adds to its existing $65 billion Arizona investment projects and signals the global foundry giant’s commitment to expanding production in the world’s largest AI market. It also reduces geopolitical risks tied to its Taiwan-based operations, particularly after President Trump announced his tariff program would commence immediately.
With global chip demand soaring, driven not only by AI, but also smartphones and cars, Taiwan Semiconductor Manufacturing’s 60% share of the advanced semiconductor market makes it a leader poised for growth.
The U.S. investment will create thousands of jobs in the U.S. and neatly aligns with Trump’s push for domestic manufacturing, potentially shielding the foundry from the President’s proposed tariffs on foreign chips, which could hit 25% or higher.
Despite challenges like higher U.S. production costs and a tight labor market, the chipmaker’s focus on cutting-edge 2-nanometer (nm) and A16 technologies ensures it stays ahead of rivals like Intel (NASDAQ:INTC) and Samsung.
At 24 times earnings and 16 times next year’s estimates, TSM stock looks fairly valued for its growth potential, making it a solid bet for investors seeking exposure to the ongoing AI chip boom.
ACM Research (ACMR)
The second AI stock to buy with your $3,000 investment is ACM Research (NASDAQ:ACMR) because of its strong position in wafer-cleaning technology. As it eliminates contaminants from wafer surfaces at the front end of the chip processing cycle, its machines create pristine conditions necessary for wafer manufacturing.
ACM Research reported fourth-quarter earnings last week showing a standout performance as adjusted earnings of $0.56 per share beat Wall Street’s $0.39 per share estimate. Revenue also hit $223.5 million, up 40% year-over-year and surpassing analyst forecasts of $194.9 million. Shipments soared 63%, reflecting ACM’s growing share in the chip market, especially in China, where demand for AI, 5G, and electric vehicle chips is booming. Its advanced tools help chipmakers produce at cutting-edge 2nm and 3nm nodes, while also targeting more mature nodes that taps into Asia’s production needs.
Trading at just 16 times earnings and 10 times estimates, ACMR looks undervalued compared to peers like TSM. Because the majority of its business is within China, it should benefit from domestic demand from companies cut off by tariffs and the growing trade war.
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