Foreign Media Names 2 AI Stocks to Buy Now for 10-Year Gains, Including TSMC

Foreign media is spotlighting two artificial intelligence stocks that could reward investors over the next decade. The Motley Fool identifies Nvidia and TSMC as prime candidates, emphasizing their established advantages in the rapidly evolving AI landscape.

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Demand has been explosive, and the reason is simple: the agentic AI era has arrived.

Nvidia stands out due to its impressive profitability, commanding market share in AI processors, and a valuation that is considered relatively reasonable. The company reported a 140% year-over-year increase in earnings per share in its latest quarter, driven by soaring demand for its AI chips. Nvidia CEO Jensen Huang highlighted the "explosive growth" fueled by the "agentic AI era," where AI can perform productive tasks and generate revenue. Despite potential slowdowns in data center investment growth, the demand for AI processing power is expected to remain robust. Nvidia holds approximately 86% of the data center AI chip market revenue share, far ahead of its closest competitor, AMD, which holds about 7%. With a price-to-earnings ratio of around 32, Nvidia's stock is seen as attractively valued compared to the tech industry average of 43.

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AI can now perform productive, value-generating work. Tokens can now generate revenue, so model developers are racing to increase their capacity.

TSMC, the world's leading contract chip manufacturer, is identified as the essential backbone for the AI technologies that capture headlines. The company produces about 68% of the world's chips, including 90% of advanced-process chips. This dominant market position has fueled strong financial performance, with first-quarter revenue increasing 41% year-over-year to nearly $36 billion. TSMC anticipates the global chip market to reach $1.5 trillion by 2030, indicating significant growth potential. Management remains confident in the "AI Megatrend" and the sustained importance of semiconductors. Similar to Nvidia, TSMC's P/E ratio of around 38 is below the tech industry average. Given its seemingly unshakeable lead in advanced chip manufacturing, investing in TSMC for a decade is presented as a potentially wise decision.

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In the AI era, compute is revenue and profit.

While new AI companies emerge, the article suggests that long-term investors should focus on established tech giants with deep technological moats and scale advantages. Nvidia controls the core of AI computing, and TSMC manufactures the advanced chips, positioning both companies to be major beneficiaries of the AI industry's continued high-speed growth over the next ten years.

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We remain confident in the AI Megatrend for many years to come.