With the first month of the year complete, it's clear that there is one trend that isn't going away: artificial intelligence. AI is going to be prevalent throughout 2026 (spoiler alert: It will also be that way for the next five years), and there are few better places to invest fresh capital than the computing leaders.
By investing in AI computing companies, you're picking stocks that are making money right now and aren't dependent on the overall success of the generative AI trend. Investors won't know the full impact of generative AI for many years, and by then, trillions of dollars will have been spent with Nvidia (NVDA 1.36%), Broadcom (AVGO 1.35%), and Taiwan Semiconductor (TSM 4.74%).
This makes these three the best buys of February, and investors should consider loading up on them this month.
Image source: Getty Images.
Nvidia and Broadcom
Nvidia and Broadcom are each making computing units, but they are taking different approaches. Nvidia designs graphics processing units (GPUs), which are suited for a wide variety of tasks. Broadcom designs custom AI chips, which are designed for a specific workload in mind. Each of these companies is seeing rapid revenue growth, with Nvidia's data center division (which encompasses its AI-focused products) growing to a 66% pace in the third quarter of fiscal year (FY) 2026 (ending Oct. 26) and Broadcom's AI semiconductor division rising at a 74% pace.
NASDAQ: NVDA
Key Data Points
As its clients build increased computing capacity, demand for each of their products will likely continue to rise. This makes them both worthy investments. By splitting your allocation evenly between the two, I think investors are best set up for success.
Even though Nvidia GPUs are designed for a broader purpose, they won't ever be replaced because AI training often requires a wide variety of data sets that can come in unstructured formats that only a GPU could handle. Broadcom's advantage lies in leading toward the inference side where fairly common prompts and responses can allow for a more streamlined computing approach.
NASDAQ: AVGO
Key Data Points
Regardless, each company is competing for a massive market opportunity. Nvidia estimates that global data center capital expenditure will reach $3 trillion to $4 trillion by 2030, up from $600 billion in 2025. That's total spend, so it includes construction costs and computing costs, regardless of which company provides the computing units.
That's a major, multiyear opportunity each company is vying for, making Broadcom and Nvidia smart buys and holds now.
Taiwan Semiconductor Manufacturing
While Nvidia and Broadcom design the chips, they don't manufacture them. That falls to Taiwan Semiconductor Manufacturing, or TSMC, the world's leading chip foundry. It has a substantial market share and generates significantly more revenue than any of its competitors.
NYSE: TSM
Key Data Points
TSMC is also diversifying away from its home base in Taiwan, with massive facilities being constructed in the U.S. and other locations around the globe. This reduces a single point of failure risk, making the stock seem far less risky than some believe.
TSMC is also bullish on the AI build-out, and it believes that AI chips will grow at nearly a 60% compounded annual growth rate (CAGR) between 2024 and 2029. However, TSMC also makes chips for non-AI applications, so its overall growth rate is dragged down a bit by other segments. Overall, they expect nearly a 30% growth rate in U.S. dollars this year, a sign that this stock should be primed to beat the market.
With the stock trading for 24 times forward earnings, it's also reasonably valued, too.
TSM PE Ratio (Forward) data by YCharts.
I think the combination of all three companies is a great way to play the AI space. Investors should consider scooping them up this month. The AI race will continue thriving throughout 2026, and there are few better options than this trio.
