This has been an interesting year so far for stocks. At the time of writing, the broad market is up around 7%, which would normally be considered a stellar performance for the first half of the year. A lot has happened between the start of 2025 and now, and there are some questions about how much further the market can rise.
Still, I think there are a few excellent investment options out there that are poised to deliver strong multi-year growth, making them great buys now, even if they appear a little expensive. By shifting your focus from the next few months to the next few years, you can pick up shares of stocks now at prices that will look cheap down the road.
Here are four excellent stocks to consider now.
Image source: Getty Images.
1. Nvidia
Nvidia (NVDA +0.19%) remains one of my top stock picks to buy despite its incredibly strong multi-year run. Demand related to artificial intelligence (AI) is still growing and expected to continue increasing for some time. The company's graphics processing units (GPUs) remain the industry standard for AI computing, positioning it well to capitalize on future growth.
NASDAQ: NVDA
Key Data Points
Nvidia cited a third-party projection in its latest conference for developers, stating that global data center capital expenditures were $400 billion in 2024, but are expected to rise to $1 trillion by 2028. Should that projection come true, Nvidia's sales are expected to continue increasing rapidly over the next few years, making it a great long-term investment to consider now.
2. Taiwan Semiconductor
Taiwan Semiconductor Manufacturing (TSM 1.17%) is also riding the wave of AI demand, and management has made several bold predictions for the next five years. TSMC's management team is well-positioned to make these predictions, as it is the primary chip supplier for many of the top tech companies, including Nvidia. Over the next five years, they anticipate their AI-related revenue will grow at a 45% compound annual growth rate (CAGR).
That's a huge rise, but there are still other parts of TSMC's business that aren't AI-related. As for overall company growth, management believes its CAGR can approach 20%, which is still impressive, considering Taiwan Semiconductor's size.
NYSE: TSM
Key Data Points
TSMC is poised to deliver substantial growth over the next five years, making it a savvy move to scoop up shares now.
3. Alphabet
Alphabet (GOOG 1.19%) (GOOGL 1.26%) is easily one of the most disliked tech stocks on the market these days. In the past quarter, it delivered excellent revenue growth of 12% alongside a 49% rise in diluted earnings per share. That's significantly better performance than most other big tech companies, and yet the market has priced Alphabet's stock at a dirt cheap level.
GOOGL PE Ratio (Forward) data by YCharts
At less than 19 times forward earnings, Alphabet trades at a significant discount to the S&P 500, which sits at 23.2 times forward earnings. Alphabet's stock trades at a discount because the market assumes that its primary business, the Google Search engine, will be disrupted by generative AI.
While generative AI has certainly challenged Alphabet, it's an error to say that it has been defeated. Google has integrated AI search overviews, which millions have used as an alternative to a full generative AI experience. Additionally, Google Search's revenue rose by 10% in the last quarter, which showcases its strength in the current environment.
Alphabet's stock may take some time to recover and trade at normal big tech valuations, but if it does, the gains will be substantial, making Alphabet a compelling stock to consider now.
4. Meta Platforms
Social media giant Meta Platforms (META 2.56%) has made significant investments in AI. CEO Mark Zuckerberg has laid out a roadmap for where he thinks generative AI will take Meta, and it will undoubtedly be a significant boost to results.
Meta Platforms derives most of its revenue from sites like Facebook and Instagram, and integrating AI into those platforms is key to maintaining its status as a must-advertise area. The company offers several generative AI products that make ads more tailored to viewers and can be easily created for advertising clients.
Additionally, Meta is focusing on leveraging the power of AI to make the company more efficient, which could significantly reduce operating costs by deploying a team of AI agents that can perform the work of a mid-level engineer.
NASDAQ: META
Key Data Points
These two catalysts should drive top-line growth and make the company more efficient, supercharging Meta's earnings growth over the next few years. This makes the stock an excellent choice to consider buying now, as its earnings growth is expected to drive significant stock price appreciation.
