The burgeoning artificial intelligence (AI) market boasts no shortage of high-flying stocks. Yet today's volatile macroeconomic climate, fueled by the Trump administration's ever-evolving tariff policies, necessitates choosing AI businesses that can thrive through this unpredictability.
Three AI companies with the ability to do so are Dell Technologies (DELL -0.78%), Nvidia (NVDA -1.44%), and Taiwan Semiconductor Manufacturing (TSM 0.39%), commonly called TSMC. Amid an uncertain economy, these companies have demonstrated AI success, indicating the potential for prosperity over the long run when economic conditions improve.
Not only that, but investing in all three gives you exposure to key segments of the AI ecosystem. Nvidia designs AI semiconductor chips, TSMC manufactures them, and Dell uses them in the hardware sold to customers. Here's a deeper look into each.
Image source: Getty Images.
1. TSMC
TSMC is one of the industry leaders in AI chip manufacturing thanks to its cutting-edge 3 nanometer (nm) process. The miniature size involved in 3nm, which is about the diameter of human DNA, allows more components on each chip. This delivers superior microprocessor speed and computational power.
The chipmaker's tiny tech has powered outsize sales growth. In the first quarter, its revenue rose 35% year over year to $25.5 billion, or 839.3 billion in New Taiwan dollars, as 3nm sales contributed 22% of income, up from just 9% a year ago.
Despite today's macroeconomic uncertainty, the company expects Q2 revenue to reach between $28.4 billion and $29.2 billion. That would be a substantial jump up from the prior year's $20.8 billion, continuing the strong year-over-year growth seen in the first quarter.
Along with growing revenue, TSMC possesses strong financials. Its Q1 balance sheet boasted total assets of NT$7.1 trillion with cash and marketable securities of NT$2.7 trillion, and that cash pile alone eclipsed total liabilities of NT$2.5 trillion. TSMC's combination of advanced tech and financial strength make it a great AI investment.
2. Nvidia
AI leader Nvidia is not immune to the current macroeconomic situation, but results for its fiscal first quarter, ended April 27, affirm that the semiconductor giant is still firing on all cylinders. Revenue rose 69% year over year to $44.1 billion.
The results are despite the Trump administration's trade policies diminishing Nvidia's sales to China, which led the semiconductor giant to incur a substantial $4.5 billion charge in Q1 associated with excess inventory previously earmarked for Chinese customers.
Nvidia's sales growth contributed to expanding profits. Q1 net income soared 26% year over year to $18.8 billion. The bottom-line growth benefited shareholders by driving diluted earnings per share (EPS) to $0.76, a 27% year-over-year increase.
The company's revenue expansion is thanks to its popular AI products, and that success is poised to continue. The company's new Blackwell platform brings artificial intelligence systems into the age of AI reasoning, where AI begins to mimic human thinking.
This marks the point at which AI becomes a must-have for organizations, with Nvidia positioned to benefit. CEO Jensen Huang said in the Q1 earnings report, "Countries around the world are recognizing AI as essential infrastructure -- just like electricity and the internet -- and Nvidia stands at the center of this profound transformation."
3. Dell
Dell made a name for itself with customizable PCs, but today, its bread and butter is selling AI-optimized hardware for businesses. The company is seeing exceptional customer demand for its products. Chief Operating Officer Jeff Clarke noted AI-related orders in its 2026 fiscal first quarter, ended May 2, exceeded "the entirety of shipments in all of FY25."
This positions Dell for a strong year ahead. In fiscal Q1, the company achieved record revenue of $6.3 billion in its servers and networking business. Overall, Q1 sales hit $23.4 billion, a 5% year-over-year increase.
Moreover, Dell estimates fiscal Q2 sales to accelerate, coming in between $28.5 billion and $29.5 billion. That would be at least a 14% jump up from the prior year's $25 billion.
Even better news for investors is the company's 2026 fiscal year forecast for diluted EPS, which Dell expects will grow 25% year over year to $7.99 at the midpoint of its guidance.
Clarke highlighted one of Dell's keys to success, stating, "Our industry-leading supply chain is a unique advantage in the dynamic environment we are operating in today." This helped Dell attain record Q1 cash flow from operations of $2.8 billion.
In addition, Dell's stock valuation is appealing, making now a good time to grab shares. Here's a look at Dell's, TSMC's, and Nvidia's forward price-to-earnings (P/E) ratios.
Data by YCharts.
Dell's forward P/E multiple is low compared to its AI brethren, indicating its stock is a good value. In fact, the current macroeconomic uncertainty caused the forward earnings multiple to drop for Dell, TSMC, and Nvidia, making all three stocks a better value than at the start of the year.
The secular trend of AI is delivering a tailwind to these businesses, and forecasts estimate the AI market to expand from 2024's $184 billion to a whopping $826 billion by 2030. This industry growth and the improvement in TSMC, Nvidia, and Dell's share price valuations make all three great stocks to buy now and hold over the long term.
