Nvidia, TSMC, Nebius targeted as AI stock buys

What happened

An investment analyst recommends buying Nvidia, TSMC, and Nebius as smart AI stock picks. Nvidia is expected to see 81% revenue growth for fiscal year 2027 (ending January 2027) and 41% growth the following year. TSMC projects its AI chip revenue will rise at nearly a 60% compound annual growth rate (CAGR) through 2029 starting from 2024 levels, leading to a mid-20% overall revenue growth rate. Nebius, an Nvidia-backed cloud computing company, saw revenue rise 684% year over year in the first quarter and expects to reach $7 billion（約1.1兆円） to $9 billion（約1.4兆円） in annual recurring revenue by the end of this year.

Why it matters

Each company stands to benefit from sustained increases in AI computing demand. Nvidia remains the dominant chip designer despite its massive market size, with new Rubin architecture shipping later this year and strong data center spending expected. TSMC, which manufactures Nvidia's chips and serves other major clients, is positioned to capture the broader semiconductor supply surge. Nebius demonstrates that the broader AI infrastructure buildout is still in early stages, evidenced by its explosive growth as it expands from one to seven 100-megawatt data centers.

What to watch

The analyst believes Nvidia could see a major rally toward the end of the year as investors begin recognizing 2027's growth potential, making now a candidate entry point. TSMC investors should be prepared to hold for a few years to realize gains. Nebius's ability to deliver on its $7 billion（約1.1兆円） to $9 billion（約1.4兆円） annual recurring revenue target by year-end will be a key milestone.