2 Top Artificial Intelligence Stocks to Buy in June 2025#

Artificial intelligence (AI) investing remains a major market theme in 2025. While some AI hyperscalers have successfully rolled out AI models, profitability from these ventures is still emerging. For investors, a compelling strategy is to buy shares of companies benefiting from the AI boom’s underlying infrastructure and chip production.

Two standout picks this month are Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC) — both essential players in the AI arms race.

1. Nvidia (NASDAQ: NVDA)#

Nvidia has cemented its dominance in the data center GPU market, controlling approximately 90% or more of the market share. Its graphics processing units (GPUs) excel at highly parallel computations, which are critical for training and running AI models at scale.

Why Nvidia?#

Massive growth: Nvidia reported a 69% revenue increase in Q1 2025 and projects 50% growth in Q2.
Data center leadership: Its GPUs form the backbone of many AI data centers worldwide.
Strong market cap: $3.5 trillion as of June 20, 2025.
Solid margins: Gross margin of 70.11%.
Future upside: Record data center spending by Nvidia’s clients points to sustained demand.

As AI adoption grows, Nvidia’s infrastructure role positions it to reap outsized benefits, making it one of the best AI stocks to own going forward.

2. Taiwan Semiconductor Manufacturing Company (NYSE: TSM)#

While Nvidia designs GPUs, Taiwan Semiconductor (TSMC) manufactures them along with chips for other top tech players, including Apple. TSMC’s cutting-edge fabrication capabilities power advanced devices and AI hardware worldwide.

Why Taiwan Semiconductor?#

Key AI manufacturer: Serves Nvidia and many other clients in AI and consumer electronics.
Global expansion: Growing manufacturing footprint beyond Taiwan to the U.S., Japan, and Germany.
Robust growth: Management forecasts a 45% compound annual growth rate (CAGR) in AI-related revenue over five years, with total revenue growing near 20% CAGR.
Attractive valuation: Trades at a forward P/E of 22.8, roughly in line with the broader market’s 22.9.

Despite geopolitical risks tied to Taiwan’s location, TSMC remains a critical and compelling buy for investors seeking exposure to AI semiconductor growth.

Should You Buy Nvidia Now?#

While Nvidia boasts tremendous growth and market share, it was not among the Motley Fool Stock Advisor’s current top 10 picks. Their historical recommendations have yielded impressive returns—such as Netflix and Nvidia itself in prior years—underscoring the value of disciplined stock selection.

For those looking to ride the AI wave, Nvidia and Taiwan Semiconductor provide two of the most promising investment opportunities today, grounded in essential AI hardware and infrastructure.