With the Nasdaq Composite in bear market territory (marked by the index falling more than 20% from its all-time high), there is some panic in the market. Investors are worried about the effect of tariffs on the consumer and would rather be in more conservative investments than artificial intelligence (AI) stocks, which have more upside but with more risk.
However, this selling is short-sighted. Anyone selling right now has a one-year time frame in mind, rather than the three- to five-year time frame that individual investors should have. If you stretch your investing horizon out longer, today’s stock prices don’t seem as scary; instead, they look like a buying opportunity.
So, if you can invest in the market now, here are three stocks that I think have a very high chance of being worth a lot more over the next few years.
AI investing has mainly centered around the buildout of AI infrastructure, which has benefited companies like Taiwan Semiconductor Manufacturing (NYSE: TSM), Nvidia (NASDAQ: NVDA), and Broadcom (NASDAQ: AVGO). Each of these companies supplies important components in the AI value chain, and they have also sold off dramatically over the past few weeks.
Broadcom is faring the worst, down over 40% from its highs. Nvidia and TSMC are faring a bit better, with each off around 35%. However, I don’t think that’s warranted, as the AI arms race is bigger than the tariff fears.
When President Donald Trump announced tariffs on April 2, many were shocked at the high rates. One of the highest rates was levied on Taiwan, an astounding 32%. This could be a huge problem, as Taiwan Semiconductor makes a ton of chips for Nvidia and Broadcom (along with many other companies) that would instantly go up in price due to the tariff. However, semiconductors are exempt from this rate, so this isn’t something investors should be worried about at the moment.
Still, with how high some of the other rates were, many are worried that it will severely affect the consumer and cause them to spend less money. Many of the AI hyperscalers (like Meta Platforms,…
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