As the first month of the year comes to an end, it’s clear that one trend isn’t going away: artificial intelligence. Artificial intelligence will be big in 2026 (spoiler alert: it will be the same in the next five years), and there’s no better place to invest new capital than in computing leaders.
By investing in AI computing companies, you can choose stocks that are making money right now and are not dependent on the overall success of the generative AI trend. Investors won’t know the full impact of generative AI for many years, by which time trillions of dollars will have been spent on NVIDIA(NASDAQ: NVDA), Broadcom(NASDAQ:AVGO)and TSMC(NYSE:TSM).
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That makes these three top buys for February, and investors should consider buying them this month.
Image source: Getty Images.
Nvidia and Broadcom both make computing units, but they take different approaches. Nvidia designs graphics processing units (GPUs) for a variety of tasks. Broadcom designs custom AI chips designed for specific workloads. Revenues at these companies are growing rapidly, with Nvidia’s data center unit (which includes its AI-focused products) growing 66% in the third quarter of fiscal 2026 (ended October 26) and Broadcom’s AI semiconductor unit growing 74%.
As customers’ computing power increases, demand for each of its products is likely to continue to grow. This makes them all worth investing in. I think investors will be most successful by splitting your allocation evenly between the two.
Although Nvidia GPUs are designed to be more versatile, they will never be replaced because AI training often requires a variety of data sets, which may be in unstructured formats that only GPUs can process. Broadcom’s advantage is being ahead of the curve in terms of inference, with fairly common prompts and responses enabling a more streamlined approach to calculations.
Regardless, every company is vying for a huge market opportunity. Nvidia estimates that global data center capital expenditures will increase from US$600 billion in 2025 to US$3 trillion to US$4 trillion by 2030. This is the total expenditure, so it includes construction costs and computing costs, regardless of which company provides the computing units.
This is a significant, multi-year opportunity that every company is competing for, so Broadcom and Nvidia would be wise to buy and hold now.
While Nvidia and Broadcom design chips, they don’t make them. That falls to Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), the world’s leading chip foundry. It has a huge market share and generates significantly more revenue than any of its competitors.
TSMC has also diversified beyond its headquarters in Taiwan, building numerous facilities in the United States and other parts of the world. This reduces the risk of a single point of failure, making the stock look far less risky than some believe.
TSMC is also optimistic about the AI ​​layout and believes that AI chips will grow at a compound annual growth rate (CAGR) of nearly 60% from 2024 to 2029. However, TSMC also produces chips for non-AI applications, so the overall growth rate is dragged down by other segments. Overall, they expect growth this year in U.S. dollars to be close to 30%, suggesting the stock should be poised to beat the market.
The stock trades at a forward price-to-earnings ratio of 24 times, and its valuation is reasonable.
TSM P/E ratio (forward) data provided by YCharts.
I think the combination of these three companies is a great way to get into artificial intelligence. Investors should consider buying them this month. The AI ​​race will continue to thrive in 2026, and there are few better choices than these three.
Before buying Nvidia stock, consider the following factors:
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Keithen Drury has worked at Broadcom, Nvidia and TSMC. The Motley Fool owns and recommends Nvidia and TSMC. “Motley Fool” recommends Broadcom. The Motley Fool has a disclosure policy.
