This year has been a strange one for the markets. If you only looked at the S&P 500 (^GSPC 0.01%) on Jan. 1, lived in a cave for five months, then emerged in June, you would have thought it has been an extremely boring year for the markets. But investors know that's not the case as tariff turmoil has rattled the market, which subsequently caused it to rise when levies were decreased as concessions were made.
Despite all the market turmoil, I still think there are several compelling stocks to invest in during June. My top three are Taiwan Semiconductor Manufacturing (TSM 2.41%), Alphabet (GOOG 1.07%) (GOOGL 1.19%), and Nvidia (NVDA 0.51%). This trio represents all types of companies in the investment range but is focused on one of the biggest growth trends the market has ever seen: artificial intelligence (AI).
Image source: Getty Images.
1. Nvidia
Nvidia has been the name to own since 2023, as its graphics processing units (GPUs) are powering the AI revolution. A GPU's ability to process multiple calculations in parallel sets it apart from other computing methods. Furthermore, connecting thousands of these GPUs in clusters multiplies this effect. Several AI hyperscalers have assembled supercomputers with 100,000 GPUs, allowing them to train AI models rapidly.
Nvidia has made a fortune from these GPUs, and it's not yet done. In Q1 FY 2026 (ended April 28), its revenue rose 69% year over year. Although the U.S. government restricting chip sales meant for China had some impact, it was still an impressive quarter and shows that Nvidia is maintaining its growth rate.
During its 2025 GTC event, Nvidia touted a third-party estimate that stated data center capital expenditures were $400 billion in 2024, but were slated to rise to $1 trillion by 2028. If that prediction comes true, Nvidia's jaw-dropping growth will continue, making this a must-own stock.
2. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (TSMC) is a key supplier to Nvidia and many other big tech companies. Its chip fabrication abilities are second to none, which is why most innovative tech companies choose TSMC as their chip fabricator.
TSMC is in a unique and enviable position because it can stay neutral. Since it isn't trying to sell its chips on the market, only its chip-producing abilities, companies that compete with each other are often also TSMC clients. So, as long as the prevailing tech trend is to use increasingly advanced chips and more of them, TSMC will continue to be a winning stock pick.
Additionally, because these chip orders are placed years in advance, management has a great vision of the future. It expects AI-related revenue to grow at a 45% compound annual growth rate (CAGR) for the next five years and overall revenue to increase at a near-20% CAGR. On top of that, TSMC's stock really isn't all that expensive.
TSM PE Ratio (Forward) data by YCharts
With the stock trading for 21.2 times forward earnings compared to the broader market's 22.1 times forward earnings valuation (as measured by the S&P 500), TSMC offers an excellent combination of growth and value.
3. Alphabet
Alphabet is more on the value side of the investment spectrum, although it also provides excellent growth. In Q1, Alphabet's revenue rose 12% while diluted earnings per share rose 49%. If all you do is read news headlines about Alphabet's stock, then you may be shocked to find that the company is still doing excellent despite increasing headwinds.
Alphabet faces three primary headwinds:
- Artificial intelligence taking over its search business.
- An economic slowdown harming advertising sales.
- A potential government breakup.
It's hard to predict the third headwind, as it will still be years before investors know what will happen with Alphabet's business. There are many appeals processes and settlements to be reached, and I'm ignoring that possibility right now. However, if you're uncomfortable with ignoring the impending government action, that's also OK.
Economic slowdowns happen occasionally, and Alphabet has always bounced back stronger after each slowdown, so this is only a short-term tailwind (if it occurs at all).
Lastly is AI taking over search. This is a real threat, but management has already implemented an AI search overview on Google and launched an AI mode. Furthermore, Google Search's revenue increased by 10% during Q1. If there were serious problems stemming from generative AI threats, observers likely would have seen some weakness, as widespread generative AI use has been occurring for nearly three years.
Alphabet is still doing fine as a company, yet the stock trades for less than 18 times forward earnings due to various fears surrounding it. I think now represents an excellent buying opportunity, and investors should be scooping up shares of this value play in June.
