The 4 Best Stocks to Buy Right Now

The piece recommends buying Nvidia, TSMC, Broadcom and Alphabet on the strength of AI-driven demand and solid recent results: Nvidia reported $57 billion in revenue (up 62% YoY) and is sold out of cloud GPUs; TSMC saw sales rise 41% YoY in Q3 and is ramping 2nm production with ~25–30% lower power consumption; Broadcom’s AI semiconductor division grew 63% YoY to $5.2 billion (projected $6.2 billion in Q4); Alphabet posted third-quarter sales up 16% and diluted EPS up 35% aided by Gemini and Google Cloud. The article argues these firms occupy structural positions in the AI supply chain and are likely to continue revenue and share gains into 2026, supporting a bullish investment stance.

Analysis

Market structure: Winners are NVDA, TSM, AVGO and GOOG — Nvidia gains immediate pricing power from being sold out, TSMC captures fab premium with 2nm (potential ~25–30% power efficiency edge), Broadcom wins hyperscalers by offering lower-cost, higher-throughput ASICs, and Alphabet monetizes generative search. Losers are general-purpose CPU vendors and smaller fabless GPU competitors as hyperscalers internalize or customize AI silicon, compressing their TAM and pricing over 2024–2026.

Risk assessment: Tail risks include tightening U.S./export-control actions or a Taiwan military incident that could erase 30–50% of TSM/NVDA value in a crisis; demand shock (enterprise AI spend cut by >20%) could halve near-term multiples. Immediate (days) risks: earnings/positioning volatility; short-term (weeks–months): supply-chain/capex updates from TSMC; long-term (quarters–years): adoption curves and energy/infra constraints that favor more efficient silicon.

Trade implications: Position sizes should be tactical (2–4% each) with explicit hedges: buy NVDA and TSM for structural AI exposure while using options to cap drawdowns; favor AVGO for margin resilience versus NVDA for pure growth. Expect to reweight into 2nm production milestones (TSMC guidance) and hyperscaler design wins (Broadcom wins) over the next 6–18 months; use delta-targeted LEAPs and collar structures to manage volatility.

Contrarian angles: Consensus underprices geopolitics and power/infrastructure constraints—if energy costs rise or data-center build slows, custom ASIC adoption accelerates, capping Nvidia pricing by 2026. NVDA’s current premium may be partly overdone in implied-vol term-structure; Broadcom’s bespoke-chip model may be underappreciated and is a feasible multi-quarter winner if hyperscalers scale production away from GPUs faster than markets expect.

Key Decisions for Investors

• Establish a 3% long position in NVDA (ticker NVDA) sized to portfolio risk budget; implement a 6–12 month protective collar: buy 6-month puts ~20% OTM and sell 6-month calls ~10% OTM to finance protection. Add to the position on any pullback >10% and trim if NVDA rallies >40% from entry.
• Allocate 2.5% to Taiwan Semiconductor (TSM) for secular 2nm exposure via buying 12-month LEAP calls with delta ~0.40 (captures upside to 2026 ramp) and set an actionable political-risk trigger: reduce position by 50% if Taiwan-related export-control headlines cause a >12% intraday drop or if TSMC delays 2nm mass production beyond Q3 2026.
• Take a 2% long position in Broadcom (AVGO) as a relative-quality play on bespoke AI ASIC wins; pair this with a 2% short in AMD (AMD) or another GPU-focused small-cap to express share-shift risk — unwind the pair if AVGO QoQ AI-segment growth <20% or Broadcom AI revenue guidance misses by >5ppt.
• Buy 9–12 month GOOG LEAP calls (delta ~0.45) sized 2–3% of portfolio to capture Gemini/cloud monetization while selling near-term (3-month) covered calls to generate income until material cloud margin or ad-revenue catalysts appear. Monitor ad growth and Google Cloud operating margins; reduce exposure if GAAP/adjusted cloud margins compress >300 bps quarter-over-quarter.