3 Artificial Intelligence Stocks With Strong Earnings and Compelling Value Right Now

3 No-Brainer Artificial Intelligence (AI) Stocks to Buy Right Now

Wall Street is deep in earnings season as the top companies report their midyear results for 2025. One clear trend stands out: AI is maintaining strong momentum. Several leading AI stocks have delivered solid earnings that confirm their key roles in AI’s growth. Here are three AI stocks with impressive recent results that still trade at attractive valuations, making them smart buys today.

1. ASML

ASML Holding (NASDAQ: ASML) is a Dutch company that manufactures highly complex machinery essential for producing advanced semiconductors used in AI applications. Despite reporting strong second-quarter earnings that beat expectations, its stock price has dropped nearly 40% from its all-time high.

The reason? Management issued cautious guidance for next year due to uncertainties around tariffs and geopolitical tensions affecting export controls. Still, ASML holds a unique position as the only company producing extreme ultraviolet (EUV) lithography machines, which are critical for etching the intricate patterns on silicon chips.

Given the rising demand for more powerful and complex chips, ASML’s technology remains indispensable. Analysts forecast the company’s earnings to grow over 17% annually in the next three to five years. Currently trading at a five-year low price-to-earnings (P/E) ratio of 25, ASML offers a rare value opportunity in AI infrastructure.

2. Alphabet

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), Google’s parent company, has faced pressure from concerns that AI models could hurt its core search advertising business. However, Google’s ad revenue still grew by 12% year-over-year in Q2 2025, showing resilience despite competition from emerging AI platforms like ChatGPT.

The stock trades just 8% below its record high and carries a P/E ratio around 20, significantly below its decade-average near 30. Beyond advertising, Alphabet’s Google Cloud is expanding rapidly, boosted by AI demand. Its autonomous driving subsidiary, Waymo, is also gaining traction with its ride-hailing services entering new markets.

Analysts expect roughly 15% annual earnings growth over the next few years. At current valuations, Alphabet provides a solid growth play with room for multiple expansion if sentiment improves.

3. Taiwan Semiconductor Manufacturing Company (TSMC)

TSMC (NYSE: TSM) is the world’s largest semiconductor foundry and a critical partner for AI chipmakers like Nvidia. Its market share has grown from 29.4% to an estimated 35.3% in Q1 2025, thanks in part to strong demand for AI chips.

With global data center investments expected to exceed $7 trillion over the next five years, TSMC is well positioned to benefit from sustained chip demand. The company posted strong Q2 results, and analysts project earnings growth above 21% annually over the next three to five years.

However, investors should consider the geopolitical risks linked to TSMC’s location in Taiwan amid ongoing tensions with China. Despite this, the stock’s P/E ratio of 27 remains attractive for the anticipated growth.

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• ASML: Leader in EUV lithography machines critical for chip manufacturing.
• Alphabet: Strong ad revenue growth and expanding AI-driven cloud and autonomous driving businesses.
• TSMC: Dominant semiconductor foundry with growing AI chip market share despite geopolitical risks.

These three stocks combine strong earnings momentum with attractive valuations, making them solid candidates for investors seeking exposure to AI’s growth without overpaying.