Artificial intelligence (AI) investing is a great way to capitalize on a steady growth trend. There are several great stocks investors should consider in March, but I will focus my discussion on four.
All four of these stocks are direct beneficiaries of AI spending, and each looks like a great buy right now.
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Microsoft(NASDAQ: MSFT ) It is spending big to improve its AI-related offerings, building large data centers connected to its Azure cloud computing platform to power AI workloads. So, how does it benefit from the creation of AI now? Microsoft isn’t building its own generative AI model; Instead, it chooses to host any developer who wants to use their products on Microsoft’s platform. One of its biggest partners is OpenAI. This creates massive growth for Azure, and its revenue grew 39% year-over-year in the second quarter of fiscal 2026 (ended December 31).
Azure is expected to deliver incredible growth rates during AI deployments, and this revenue is sustainable over the long term as its customers are relatively committed to using its infrastructure to run AI workloads. Despite its strong long-term outlook and strong recent successes, Microsoft stock is down about 25% from its all-time high, currently presenting a great buying opportunity for long-term investors.
Nvidia(NASDAQ: NVDA ) The market is going hard right now. Its stock is down about 11% from its all-time high, but its valuation is still very depressed.
Data by YCharts.
At 21.6 times forward earnings, Nvidia is now cheaper than the broader market, as the S&P 500which trades at about 21.7 times forward earnings. With all the growth Nvidia is expected to experience over the next five years due to AI spending, Nvidia looks like a genius stock to buy right now.
While Nvidia may be the most well-known AI computing company, Broadcom(NASDAQ: AVGO ) Starting to make waves. Nvidia makes general-purpose graphics processing units (GPUs) that can handle a variety of workloads, while Broadcom makes custom AI chips with specific end users in mind. These traditional AI chips can outperform GPUs at a lower price point in some applications, but are not capable of replacing them permanently. As a result, there is room for more than one winner in the AI computing field.
In the next few years, Broadcom expects huge growth. During the first Q1 of fiscal 2026 (ending February 1), Broadcom’s AI semiconductor division grew at a 106% pace to $8.4 billion. By the end of 2027, it expects its AI chip revenue to reach $100 billion. That’s huge growth in just two years, making Broadcom a great stock to add during March.
Taiwan Semiconductor Manufacturing(NYSE: TSM ) It doesn’t really care which computing unit AI Hyperscaler buys, because it makes logic chips that go into almost every one. TSMC is the world’s largest chip foundry and has positioned itself as a true neutral player in this space, making it a valuable partner to have.
TSMC expects strong growth for several years, as the estimated compound annual growth rate (CAGR) for AI-related chips is approximately 60% over the period between 2024 and 2029. This is huge growth driven by AI manufacturing, and as long as there is continued spending on AI, TSMC will remain an excellent stock to buy and hold.
All four of these companies are smart buys now, but investors will need to hold on for several years to reap the long-term benefits of all this AI spending. We’re still in the early stages of this build, and investors shouldn’t get too impatient with random dips in the market.
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Keith Drury has held positions at Broadcom, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool owns and offers positions in Microsoft, Nvidia, and Taiwanese semiconductor manufacturing. The Motley Fool recommends Broadcom. Motley Fool has a disclosure policy.
Top 4 Artificial Intelligence (AI) Stocks on My Buy List for March Originally Posted by Motley Fool
