With the end of August nearing, there are only four months until the calendar flips to 2027. While that may seem like an odd prospect, it’s the reality. Investors need to start thinking about which stocks will be the best performers in 2027, in order to buy them before the new year arrives.
Major funds do a lot of buying and selling in the last and first months of the year to position themselves based on where they think the markets will head, and getting in front of that can ensure success.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
The trend I think will prevail in 2027 is the same one that was successful over the past few years: AI hardware investing. There is still unmet demand for AI computing power, and many data centers need to be built to meet it. These data centers are filled with various components, including those from some major providers like Nvidia (NASDAQ: NVDA), Taiwan Semiconductor (NYSE: TSM), and Micron Technology (NASDAQ: MU). All three of these companies are trading at attractive price tags and are well-positioned to dominate in 2027.
As a result, I think now is the perfect time to scoop up shares of each of these three.
Nvidia
Nvidia rode the AI build-out trend all the way to the top to become the world’s largest company. It achieved this status through continued innovation and industry dominance, and despite its monstrous size, it’s one of the fastest-growing companies on Earth. Thanks to Nvidia’s position, it also has great foresight into what’s coming because clients are placing orders years in advance. Nvidia noted that it believes data center capital expenditures among the AI hyperscalers will surpass $1 trillion in 2027, and that the industry is on a path for $3 trillion to $4 trillion in annual data center capital expenditures by 2030 worldwide.
That’s an impressive projection, and it shows that even after 2027, Nvidia’s growth case won’t be wrapped up. That makes me confident investing in Nvidia before 2027 arrives, as there are still several more years of strong AI growth ahead.
Taiwan Semiconductor
While Nvidia may be the face of the AI build-out, it’s only a chip designer; it doesn’t fabricate its chips. That work is farmed out to other companies, with Taiwan Semiconductor being arguably the most important. It is a chip foundry that takes other companies’ designs and fabricates them for them.
