Top 3 AI Stocks I'm Buying Now (Even Over Nvidia Stock)

the key to finding great long-term Investments is understanding a company's products huge growth happens when a company has the perfect product for a hot new market like AI if you invested $10,000 into Tesla stock just 5 years ago you'd have over $160,000 today and if you invested that money into Nvidia you'd have almost A4 million right now that's because these companies have incredible product Market fit but Tesla and Nvidia are two of the most well-known companies on Earth so in this video I'll highlight three stocks that are also set to win big thanks to AI but that almost no one else is talking about your time is valuable so let's get right into it look I'm not here to waste your time so here are the three companies up front Taiwan semiconductor which makes around 90% of the world's most advanced chips including nvidia's gpus Micron Technology which makes the high bandwidth memory modules for nvidia's h200 chips invertive Holdings a company that provides power and thermal Management Solutions for data centers so this video really covers some of the key data center players that are exposed to AI across many different markets all right there's a ton to talk about so let's dive right into the Taiwan semiconductor manufacturing company which really sits at the heart of this entire AI Revolution why because tsmc is a pure play Foundry that builds chips for other companies they don't make any chips for themselves which means they don't really compete with any of their clients as a opposed to a company like Intel for example as a result tsmc makes around 90% of all advanced microchips on Earth ranging from Apple's a series and M series processors for their iPhones and MacBooks all the way to nvidia's gpus for data centers TSM stock has a price to earnings ratio of 26. 5 for comparison companies like AMD or broadcom are trading at PE ratios well over 100 and tsmc's peers have a combined price to earnings ratio of 81 on average and discounted cash flow models show tsmc as being 15% undervalued based on today's numbers but I think those numbers don't tell the full story because the global AI Market is expected to almost 9x in size over the next 8 years which would be a compound annual growth rate of over 30% through 2033 the reason tsmc is in a position to make most of the world's most advanced AI chips is that they only focus on chip fabrication not design that laser focus comes with two huge benefit let me explain them with some examples tsmc has a custom 4 nanometer process called 4np which is set up to make nvidia's Blackwell gpus these Blackwell chips are about four times better at AI training and a massive 30 times better at AI inference than nvidia's current generation of Hopper gpus that huge leap in performance per watt and performance per dollar is ultimately why there's so much demand for nvidia's chips and that demand flows down the supply chain to companies like tsmc since they're really the only company on Earth that can make these chips at high volume and that is the key here because they get massive orders for advanced chips tsmc benefits from economies of scale to the point where they can even stand up custom chip making processes for their clients that leads to more business for them which leads to more custom processes and so on it's a big positive feedback loop the second big benefit is closely related to the first and that's the network effect because tsmc makes so many different kinds of advanced chips they can learn something once and apply it everywhere whether it's a best practice for a specific chip design or a new machine for example nvidia's Blackwell chip actually takes two separate dieses and connects them with a 10 terby pers second link so they act like one GPU that's one reason why Blackwell has such insane performance compared to Hopper and why Nvidia has so much pricing power today but this chip design also comes with its own fabrication challenges because these high-speed chipto chip connections need to be placed with Incredible Precision to hit those 10 terb pers second speeds if the link placement is off even by a tiny amount the whole chip could fail as its different metal layers and materials warp and expand as they heat up during normal operations so if another chip company sees that and decides to design a chip with two dieses connected by a high-speed link who do you think they'll hire to build it probably the one company that's already solved these challenges before as a result tsmc's 3 nanometer process node N3 is currently running at full production capacity and it's expected that nvidia's next generation of gpus after Blackwell called Reuben will also be made on the N3 process on top of that tsmc's upcoming 2 nanometer process is slated for mass production in the second half of 2025 and has already been pre-booked by Apple based on all that data I expect demand for tsmc's Fabs to exceed Supply like this well into the AI era and speaking of data I found out that dozens of online data Brokers were selling my personal data and if you're getting lots of spam phone calls texts or emails lately they might be selling yours too that's why I joined delete me the sponsor of this video delete me is a hands-free subscription service that will remove your personal information from hundreds of online data Brokers you just sign up enter your information and let their experts get to work they've reviewed over 41,000 listings for me so far and found over a 100 data Brokers with my information after 7 days you get a detailed privacy report showing everything that they've done I just got my 7th report and delete me found hundreds of pieces of my personal information across 46 separate data Brokers not just my name and address but my mom's and my fiance's too but here's the best part they'll keep scanning these websites even after they remove my information and I get my own privacy advisor if I want to talk to a real person and make a custom removal request so if you care about your data and your family's privacy you can get 20% off any consumer plan with my code symbol2 by going to join delet me. com symbol2 or use my link in the description and a big thank you to delet me for supporting the channel and keeping my family's data safe all right TSM stock is up by over 90% year-to date and it's up by over 120% since I started covering it I'm Not tooting my own horn here I'm trying to show you the value in understanding the science behind the stocks speaking of which here's a fun fact tsmc uses nvidia's AI for a number of their chip manufacturing processes like optimizing the placement of Chip components and speeding up computational lithography by 40 to 60 times both of these are huge bottlenecks in how fast modern chips can be designed then those chips turn around and make nvidia's AI more powerful which helps tsmc build even better chips so this is literally AI building AI and we can't talk about AI without talking about high bandwidth memory Micron Technology is an American company that makes memory for the entire Computing industry including solid state drives Ram modules and flash memory for data centers consumer PCS smartphones and even cars each of these markets will need to transition to more advanced memory as they start integrating more AI applications into their products and services from co-pilots on computers and smartphones to autonomous robots and self- driving cars as a result the market for high bandwidth memory is expected to more than triple in size over the next 5 years which would be a 26% compound annual growth rate through 2029 the special thing about high bandwidth memory is that it packs a lot more memory into the same area by stacking memory chips vertically and connecting them to a shared Hub that lowers the physical distance that data needs to travel which lowers the overall power consumption and increases data transfer speeds well Micron makes the high memory bandwidth chips for nvidia's h200 Hopper gpus and according to their latest earnings call micron's most advanced memory products have much more demand than Supply selling out for 2024 and 2025 with a backlog of orders going into 2026 that's because companies like Google meta platforms Tesla Nvidia and open aai will keep building more advanced AI products and services which means they'll need a lot more high bandwidth memory and better data storage Solutions so no matter which company wins Micron wins making it a great stock to get rich without getting lucky all right value investors are going to be quick to say that Micron stock is overpriced because it trades at a price to earnings ratio of around 140 which is much higher than their industry average but on this channel we actually do our homework instead of relying on one single number on their latest earnings call Micron reported quarterly revenues of $7.

8 billion which is up 14% quarter over quarter and a whopping 93% year-over-year on top of that their earnings per share are up 160% from last year and since their earnings are growing so fast we should be looking at their forward PE ratio instead Micron trades at a forward PE ratio of just 12. 5 well below any of their competitors and under half of their industry's average that's why different DCF models show Micron is being 34% undervalued despite their High railing 12-month PE ratio micron's next earnings call is in a few days so comment below if you want me to keep covering this company all right so far we've talked about tsmc which makes most of the world's Advanced Data Center chips and Micron which makes the high bandwidth memory for them even though the power efficiency of nvidia's AI chips goes way up with every generation demand is going up much faster which means it'll take more than just efficiency gains to solve this problem and that's where this third company comes in and if you feel I've earned it consider hitting the like button and subscribing to the channel that really helps me out and it lets me know to keep making more content like this thanks and with that out of the way let's talk about the third company solving this AI data center demand problem Verve Holdings ticker symbol VRT makes power and thermal Management systems for data centers for example they have their Liber liquid cooling systems for highdensity Server deployments Like the massive GPU clusters for AI application and training Foundation models it turns out that power represents around 60 to 70% of the total operational cost for a Data Center and cooling accounts for 40 to 50% of a data Center's power consumption that means that cooling alone represents anywhere from 24 to 35% of the total cost of operating a data center but one thing investors might not realize is that around 90% of all server racks are still air cooled today in fact most AI clusters are still running their Nvidia h100 at low enough power to be air cooled because liquid cooling usually requires significant infrastructure changes that includes the hyperscalers like Amazon Google and Microsoft who need to support power hungry AI workloads for thousands of other businesses and one nice thing about vertiv cold plates and their direct to chip cooling solutions is they can integrate with existing data center infrastructures which lowers the overall cost of those cooling infrastructure changes the global data center liquid cooling Market is expected to grow by almost 6X over the next 9 years which would be a 21% compound annual growth rate through 2033 but industry analysts expect up to 80% of data center cooling to move specifically to direct to chip liquid cooling over time which means that Verve has the perfect product for this quickly growing Market directed chip liquid cooling is where a heat conductive copper plate sits on top of a chip just like a normal heat sink but instead of being air cooled by a fan the plate is connected to two pipes one pipe brings cool water in to absorb the heat from the plate and the other pipe moves the hot water away direct to chip liquid cooling is up to 3,000 times more effective than air cooling which has a serious impact on data center operating costs and not just because it's more power efficient every data center also has a fixed amount of space and better cooling means that server racks can be stacked closer together without overheating which lets data center operators squeeze the most compute out of their phys facility that's why Verve is currently limited by Supply and not demand just like tsmc and Micron they had a 7.