2 Best Growth Stocks

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2 Best Growth Stocks

Best Growth Stocks To Hold For Long Term

According to analysts, trillions of dollars will be poured into the AI infrastructure. And two companies that stand to gain the most from it are Taiwan Semiconductor Manufacturing (TSMC) and Nvidia (NVDA).

Taiwan Semiconductor Manufacturing

TSMC has managed to emerge as a big player in the AI revolution and for all the right reasons. They remain a leader when it comes to the manufacturing of advanced chips.

The chips from TSMC are used in cloud servers, smartphones, AI models, and tons of other applications. So, wherever there is a chip, you are sure to find TSMC as well.

The revenue of TSMC jumped by 40.8% y/y and reached $33.1 billion during Q3 2025. In addition, the operating margin of the company is 50.6%, which is also quite impressive.

Looking ahead, management believes the operating margin will be 49%-51% which is very reasonable. But what's more impressive is that they have $900 billion in cash, which means they can keep investing to develop new tech and stay competitive.

The trading price of TSMC is also very reasonable, given that it has a strong position in the semiconductor industry. Also, they are very profitable, which makes them a good stock to hold for the long term.

Nvidia

When we talk about chips, we can't ignore Nvidia. They have recently formed a consortium with other companies and are going to acquire Aligned Data Centers. It will be a $40 billion deal and will further improve the company's position and income sources.

Nvidia's GPUs, along with its software and other tools, also remain critical for the global AI infrastructure. Looking ahead, the management of Nvidia expects the global AI market to touch $3 trillion by 2040. And out of that, around $600 billion will be used in the data center infrastructure.

Right now, Nvidia is trading at 28x of its forward earnings, which is very good since it remains a major player in the AI field.

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