Even though the market has slightly recovered from the lows it experienced not long ago, it's still well off its all-time highs. Despite this, there are plenty of bargains to be found in the market.
Two that I'm most excited about are Taiwan Semiconductor (TSM 1.86%) and The Trade Desk (TTD 6.35%). Although they operate in completely different industries, they will be OK over the long term.
Taiwan Semiconductor
Taiwan Semi is the leading contract chip manufacturer and has contracts with many of the largest tech companies around the globe. Companies like Apple (AAPL 0.17%) and Nvidia (NVDA +1.90%) don't have chip production capabilities; they just handle end assembly of their chips. Instead, they source their chips from Taiwan Semi, which acts as a fabrication facility.
NYSE: TSM
Key Data Points
While there may be some concerns with TSMC's geographical location outside the U.S. and potential exposure to tariffs, there are no tariffs on semiconductors right now. However, the Trump administration has stated that one will come soon. Taiwan Semiconductor is already taking steps to sidestep these tariffs by building facilities in the U.S. In addition to the $65 billion facility already built in Arizona, Taiwan Semi announced a $100 billion investment to stand up six new facilities in the U.S.
However, those facilities will take some time, which leaves TSMC on the hook if semiconductor tariffs are eventually implemented. However, the fear of tariffs didn't stop Taiwan Semiconductor's CEO from stating:
We understand there are uncertainties and risks from the potential impact of tariff policies. However, we have not seen any change in our customers' behavior so far. Therefore, we continue to expect our full year 2025 revenue to increase by close to mid-20s percent in U.S. dollar terms.
That's bullish news for investors, yet the stock has barely budged after that announcement.
TSM PE Ratio (Forward) data by YCharts
At 17 times forward earnings, Taiwan Semiconductor's stock is a steal at these levels, and investors should use this market-wide weakness as their opportunity to scoop up the top player in the chip production industry. The market is valuing TSMC's stock like it will lose substantial business, yet management is stating the exact opposite.
The Trade Desk
The Trade Desk has been hit by two sell-offs in 2025: one from the broader market and the other from a bad earnings report. In the fourth quarter, The Trade Desk missed revenue expectations for the first time in company history, which caused the stock to sell off by more than 30% the next day. This occurred in mid-February, which was right before the broader market sell-off began. These two events compounded each other, which is why The Trade Desk's stock is down around 65% from its all-time high.
NASDAQ: TTD
Key Data Points
However, this is a very shortsighted reaction. The Trade Desk is one of the most dominant companies in the digital advertising space. It helps ad buyers (those with a product or service to sell) find the most opportune spaces to place their ads on the Internet. This can range from the margins of a website to connected TV to podcast ads. Targeted ads are the most effective form of advertising, and using AI to power that feature is key to success.
The Trade Desk has been urging clients to migrate from its old offering to the new AI-powered platform, and the company largely wrapped up that process in Q4. This is what caused the revenue miss, as The Trade Desk prioritized long-term customer relationships rather than short-term revenue. This will pay off over the next few years, but the market really only cares about the next few months.
The digital media space still has a massive growth runway, and The Trade Desk is primed to benefit from this migration. But after the sell-off, all the optimism in The Trade Desk's stock seems gone.
TTD PE Ratio (Forward) data by YCharts
Thought 28 times forward earnings may not seem like a bargain compared to other stocks in the market (like Taiwan Semiconductor), the company's dominance in this growing industry can't be ignored. As a result, I think investors should be taking advantage of the market's sale price on The Trade Desk's stock.
