AI Stocks to Watch: Nvidia, TSMC, CoreWeave, SoundHound AI

AI Stocks to Watch: Nvidia, TSMC, CoreWeave, SoundHound AI

In a landscape characterized by a strong focus on dividend-paying stocks known for their stability, a number of companies are emerging as compelling choices for investors eager to secure substantial long-term gains. Four standout companies are noteworthy for their impressive performance and future projections, particularly in the realm of technology and artificial intelligence (AI).

SoundHound AI has made significant strides since its public debut in 2022 via a special purpose acquisition company (SPAC). With an average annual gain of 82% over the past three years, this music recognition and AI firm briefly captivated the stock market. However, its journey hasn’t been without challenges; investors faced volatility, including a notable 42% drop in 2025. Despite this, the company’s management has recently raised its projections, expressing confidence in a promising future.

CoreWeave presents another intriguing opportunity, particularly in light of the surging demand for data centers driven by the AI revolution. This relatively undiscovered company saw its revenue balloon from $16 million in 2022 to an impressive $229 million in 2023, with expectations to soar to $4.3 billion in the coming year. While the soaring revenue suggests robust growth, it is important to note that the company is operating at a loss as it invests heavily in developing its infrastructure and has accrued significant debt. Despite a recent 25% drop in its stock price, CoreWeave could present a valuable bargain for investors.

Nvidia, a renowned leader in the semiconductor industry, has successfully shifted its focus from traditional gaming chips to AI and data center solutions. Over the past five years, the company has averaged an impressive annual gain of 69% and continues to attract investor attention due to its strong earnings potential relative to competitive pricing. Nvidia’s recent third-quarter report revealed record revenues, solidifying its status as a key player in the technology sector. Although some analysts express concerns about rising expectations and competition from firms such as Advanced Micro Devices and Broadcom, Nvidia’s forward momentum remains strong.

Taiwan Semiconductor Manufacturing Company (TSMC) holds the position of the largest chipmaker globally, with an approximately 68% market share in semiconductor manufacturing and around 90% in the advanced processing segment. Over the past 15 years, TSMC has maintained an exceptional average annual growth rate of nearly 25%. Recent advances in producing smaller, more power-efficient transistors position TSMC favorably to meet the burgeoning demand in AI technology. An additional appeal for investors is TSMC’s dividend, currently at around 1%, which has seen significant growth over the past five years, indicating its potential for long-term investment.

For investors exploring these promising companies, a deeper understanding of their operations and market strategies may yield fruitful insights. Whether choosing to invest directly in individual stocks or considering high-growth exchange-traded funds (ETFs), these four companies can present exciting opportunities in the continually evolving technology and AI landscape. As such, these firms not only highlight the potential for capital appreciation but also showcase the innovation driving the future of technology.

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