There has been a lot of volatility in the market lately, which has made many investors rethink which stocks should be invested in and which will stand the test of time.
While there are certainly no guarantees, three companies are in great shape to benefit from their technology leadership positions Nvidia(NASDAQ: NVDA), Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)and Taiwan Semiconductor(NYSE: TSM). Here’s why each is worth buying now and keeping in your portfolio for years to come.
Where to invest $1,000 right now? Our team of analysts just revealed what they think they are 10 best stocks to buy right now when you join Stock Advisor. View stocks »
Image source: Getty Images.
Many people are trying to figure out if we’re in an artificial intelligence bubble right now and if it’s still a smart idea to buy Nvidia, the leading designer of artificial intelligence (AI) processors.
There’s nothing wrong with making sure you’re not riding a trend at the end of its cycle, but ignoring Nvidia stock out of these fears could be a mistake. This is because tech companies continue to increase spending on AI data center infrastructure, which will drive more purchases of Nvidia processors.
Consider that Alphabet recently announced that it will double its capital spending to $185 billion this year, and Meta said it was doubling its spending and its investments reaching $135 billion. Just a few days after these announcements, Amazon said it is increasing spending by as much as $200 billion this year — all of these companies citing the need to build more data center infrastructure and AI computing power.
If all of that isn’t enough to convince you to buy Nvidia stock, consider that its stock has a price-to-earnings (P/E) ratio of about 47 right now, which is only slightly more expensive than the tech sector’s P/E average of about 43.
The first clear AI success for Alphabet was its Gemini chatbot, which now has 750 million monthly active users — a 67% jump from nine months ago. And the company recently entered into a new collaboration with Apple which will make Gemini the core AI model for a future version of Siri.
This collaboration will be worth several billion dollars to Alphabet over the next few years, according to the report Financial Timesand is structured as a cloud computing business. Those sales will build on Alphabet’s already impressive Google Cloud revenue, which rose 48% in Q4 to $17.7 billion.
And as we mentioned earlier, Alphabet is doubling its capital spending this year, which should help the company stay relevant in the rapidly changing AI market. Investors are also getting a relative bargain by buying shares right now, with Alphabet stock trading at a P/E ratio of just 30.
Taiwan Semiconductor, or TSMC, is the world’s leading semiconductor manufacturing company with a 70% market share. The company produces some of the most advanced chips in the industry, with yield rates higher than Samsung and Inteland is often the preferred choice for tech giants in need of AI processors.
If you really want a company with a long-term competitive advantage, consider researching from Morningstar says TSMC’s organic growth, driven by major technology trends, could take decades.
TSMC is already benefiting from increased AI processor needs, with revenue rising 30% to $122.4 billion in 2025 and diluted earnings rising 47% to $10.65 per American Depositary Receipt (ADR). TSMC management is confident in the company’s path and has issued guidance for a 30% increase in sales this year. And like the other two AI stocks on this list, TSMC stock is well priced with a P/E ratio of just 34.
Before buying Nvidia stock, consider the following:
The Motley Fool Stock Advisor the analyst team has just identified what they think they are 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you would have $414,554!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you would have $1,120,663!*
Now, it’s worth noting Stock advisor the total average return is 884% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss the latest top 10 list, available with Stock advisorand join an investor community created by individual investors for individual investors.
See the 10 stocks »
*The Equity Advisor returns as of February 15, 2026.
Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Intel, Meta Platforms, Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
3 Stocks to Buy and Hold Forever: A Long-Term Play for Your Portfolio was originally published by The Motley Fool
