Microsoft stock is trading down big despite solid growth for the company.
Nvidia and Broadcom see huge computing demand.
Taiwan Semiconductor Manufacturing is benefiting from increased spending across the board.
Artificial intelligence (AI) investing continues to be a great way to capitalize on a proven growth trend. There are several great stocks investors should be considering in March, but I’m going to focus my discussion on four of them.
All four of these stocks are direct beneficiaries of AI spending, and each looks like a great buy now.
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Microsoft (NASDAQ: MSFT) is spending big to shore up its AI-related offerings, building up massive data centers associated with its Azure cloud computing platform to power AI workloads. So, how is it benefiting from the AI buildout right now? Microsoft isn’t developing its own generative AI model; instead, it’s choosing to host any developer that’s willing to have their products used on Microsoft’s platform. One of its biggest partners is OpenAI. This is creating massive growth for Azure, and its revenue rose 39% year over year in Q2 of fiscal year 2026 (ending Dec. 31).
Azure is expected to deliver incredible growth rates throughout the duration of the AI buildout, and this revenue is sustainable over the long-term as its clients are relatively locked into using its infrastructure to run AI workloads. Despite this solid long-term outlook and strong recent successes, Microsoft’s stock is trading down about 25% off its all-time high, presenting long-term investors with a great buying opportunity right now.
Nvidia (NASDAQ: NVDA) is also having a rough go in the market at the moment. Its stock is down around 11% from its all-time high, yet its valuation is extremely depressed.
Data by YCharts.
At 21.6 times forward earnings, Nvidia is now cheaper than the broader market, as measured by the S&P 500, which trades for about 21.7 times forward earnings. With all of the growth Nvidia is expected to experience over the next five years due to the AI spending spree, Nvidia looks like a genius stock to buy right now.
While Nvidia may be the most recognizable AI computing company, Broadcom (NASDAQ: AVGO) is starting to make waves. Nvidia makes broad-purpose graphics processing units (GPUs) that can handle a variety of workloads, while Broadcom is developing custom AI chips with specific end users in mind. These custom AI chips can outperform GPUs at a lower price point in some applications, but lack the flexibility to be able to replace them permanently. As a result, there is room for more than one winner in the AI computing realm.
Over the next few years, Broadcom expects huge growth. During Q1 of FY 2026 (ending Feb. 1), Broadcom’s AI semiconductor division grew at a 106% pace to $8.4 billion. By the end of 2027, it expects its AI chip revenue to reach more than $100 billion. That’s huge growth in just two years, making Broadcom an excellent stock to add during March.
Taiwan Semiconductor Manufacturing (NYSE: TSM) doesn’t really care whose computing unit the AI hyperscalers are buying, as it’s making the logic chips that go into nearly every single one of them. TSMC is the world’s largest chip foundry and has positioned itself as a true neutral player in this field, making it a valuable partner to have.
TSMC expects strong growth for multiple years, as the projected compound annual growth rate (CAGR) for AI-related chips is nearly 60% from the period between 2024 and 2029. That’s huge growth powered by the AI buildout, and as long as there is continued spending on AI, TSMC will remain an excellent stock to buy and hold.
All four of these companies are smart buys now, but investors will need to hold them for several years in order to reap the long-term benefits of all of this AI spending. We’re still in the early innings of this buildout, and investors shouldn’t get too impatient with random drawdowns in the market.
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Keithen Drury has positions in Broadcom, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
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