There are plenty of artificial intelligence (AI) stocks that look like smart buys right now. Whether they’re trading at a discount to levels normally seen or have huge growth opportunities ahead, the market isn’t fully valuing these companies, so now it’s time to strike.
I’ve got three stocks that look like smart buys if you’ve got $1,000 ready to deploy. Each has excellent long-term upside and can deliver market-crushing returns.
Image source: Getty Images.
1. Nvidia
There’s still no better buy in the market than Nvidia (NVDA 1.38%), in my opinion. While Nvidia has been the face of the AI investing trend since it started, I think it’s not being fully valued because of its current size. There’s a general sentiment among investors that Nvidia can’t get any bigger, and that’s just not true. Despite being the world’s largest company by market cap, it has tremendous growth opportunities ahead.
Data center spending is expected to reach new heights again next year, and Nvidia’s new Rubin architecture is starting to ship later this year. Both of these will be further boosts to Nvidia’s growth rate. For this fiscal year (FY 2027, ending January 2027), Wall Street analysts expect 81% revenue growth. Next year, they expect 41%. Those are impressive growth rates, but it’s clear that the market isn’t pricing in next year’s phenomenal growth just yet.
NVDA PE Ratio (Forward) data by YCharts
In years past, Nvidia was trading at well over 30 times forward earnings by the time July hit. It doesn’t look like it will reach the same point this year, but it could later in the year as investors start to realize 2027’s potential. I think Nvidia could have a major rally toward the end of the year, making it a smart buy now.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (TSM +1.60%) (widely known as TSMC) is a major contributor to Nvidia’s operation. Nvidia only designs the chips; TSMC takes their design and actually manufactures it. Nvidia is just one of its customers; TSMC also has several of Nvidia’s competitors as clients, as well as unrelated entities like Apple. TSMC is the world’s largest semiconductor producer by revenue, and will thrive as long as there is a need for increased chip supply, as there is right now.

Taiwan Semiconductor Manufacturing
Today’s Change
(1.60%) $6.82
Current Price
$432.64
Market Cap
$2.2T
Day’s Range
$431.67 – $442.50
52wk Range
$206.20 – $450.16
Volume
7.6K
Avg Vol
13.4M
Gross Margin
60.72%
Dividend Yield
0.81%
The company has informed investors that it believes 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. That’s a solid and sustained growth projection, and if TSMC can deliver on expectations, it makes for a great buy now, as long as you’re willing to hold on to the stock for a few years to realize the gains.
3. Nebius
Last is Nebius (NBIS +5.91%). Nebius is an Nvidia-backed company that’s rapidly growing. It’s a neocloud company that provides AI-focused cloud computing. Nvidia and Nebius have a partnership that provides Nebius with cutting-edge technology first, making it a popular partner for several AI hyperscalers, like Meta Platforms and Microsoft. Nebius has seen unbelievable demand for its platform and is working to expand its footprint to meet the need rapidly.

Today’s Change
(5.91%) $15.67
Current Price
$280.77
Market Cap
$71B
Day’s Range
$264.35 – $297.88
52wk Range
$43.89 – $297.93
Volume
6.1K
Avg Vol
17.3M
Gross Margin
7.48%
At the end of 2025, Nebius only had one 100 megawatt data center. Now, it has seven. With new facilities coming online, Nebius’s revenue growth is expanding. In the first quarter, its revenue rose 684% year over year. By the end of this year, it believes it will reach $7 billion to $9 billion in annual recurring revenue.
That level of growth hasn’t been seen in the AI realm in a while, and showcases that it’s still the early innings of building out the required AI computing resources. I think that makes Nebius a smart, long-term buy-and-hold, and it looks like a solid stock to scoop up now.
Keithen Drury has positions in Meta Platforms, Microsoft, Nebius Group, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

