3 Top Artificial Intelligence (AI) Stocks to Buy Before 2027 Arrives
With the end of August nearing, there are only four months until the calendar flips to 2027. While that may seem like an odd prospect, it’s the reality. Investors need to start thinking about which stocks will be the best performers in 2027, in order to buy them before the new year arrives.
Major funds do a lot of buying and selling in the last and first months of the year to position themselves based on where they think the markets will head, and getting in front of that can ensure success.
The trend I think will prevail in 2027 is the same one that was successful over the past few years: AI hardware investing. There is still unmet demand for AI computing power, and many data centers need to be built to meet it. These data centers are filled with various components, including those from some major providers like Nvidia (NVDA +1.76%), Taiwan Semiconductor (TSM +1.23%), and Micron Technology (MU +1.57%). All three of these companies are trading at attractive price tags and are well-positioned to dominate in 2027.
As a result, I think now is the perfect time to scoop up shares of each of these three.
Image source: Getty Images.
Nvidia
Nvidia rode the AI build-out trend all the way to the top to become the world’s largest company. It achieved this status through continued innovation and industry dominance, and despite its monstrous size, it’s one of the fastest-growing companies on Earth. Thanks to Nvidia’s position, it also has great foresight into what’s coming because clients are placing orders years in advance. Nvidia noted that it believes data center capital expenditures among the AI hyperscalers will surpass $1 trillion in 2027, and that the industry is on a path for $3 trillion to $4 trillion in annual data center capital expenditures by 2030 worldwide.
Today’s Change
(1.76%) $3.66
Current Price
$212.14
Key Data Points
Market Cap
Day’s Range
$210.11 – $214.73
52wk Range
$164.07 – $236.54
Volume
67.1M
Avg Vol
140.1M
Gross Margin
74.15%
Dividend Yield
0.13%
That’s an impressive projection, and it shows that even after 2027, Nvidia’s growth case won’t be wrapped up. That makes me confident investing in Nvidia before 2027 arrives, as there are still several more years of strong AI growth ahead.
Taiwan Semiconductor
While Nvidia may be the face of the AI build-out, it’s only a chip designer; it doesn’t fabricate its chips. That work is farmed out to other companies, with Taiwan Semiconductor being arguably the most important. It is a chip foundry that takes other companies’ designs and fabricates them for them.
Taiwan Semiconductor is the top logic chip fabricator in the world, and often produces chips for competing companies, such as being a top supplier for both Nvidia and AMD (AMD +4.32%).
Taiwan Semiconductor Manufacturing
Today’s Change
(1.23%) $5.06
Current Price
$415.18
Key Data Points
Market Cap
Day’s Range
$414.03 – $419.77
52wk Range
$225.63 – $479.00
Volume
4.2M
Avg Vol
13.6M
Gross Margin
63.08%
Dividend Yield
0.85%
This places the company in a great spot to benefit from the AI build-out, regardless of whose computing units are currently the most popular. As long as there is more money being spent on the AI build-out, Taiwan Semiconductor’s stock is tempting.
With Nvidia’s projections that AI data center spending will continue to rise over the next few years, I think it’s a great stock to buy now.
Micron
Micron is a different style of investment. It makes memory chips, which are also in huge demand thanks to the AI build-out. However, there isn’t much that separates one memory chip producer from another, so this industry is fairly commoditized. Right now, there is a shortage of memory chips, causing prices to soar. However, more production capacity is being brought online, so this dynamic may not last forever.
Micron’s management team has told investors that they expect the tightness in the memory chip market to persist beyond 2027. This means Micron is well-positioned to have a great 2027, and with how cheap the stock is right now, that makes it a perfect stock to consider buying.
MU PE Ratio (Forward 1y) data by YCharts.
At only 6 times fiscal year 2027 earnings (ending August 2027), it’s a very cheap stock. But if its valuation rises to low double-digit levels or more, Micron could be the best performer on this list.
