3 Top Tech Stocks to Consider Buying in May

With global markets stabilising, these leading tech companies are well-positioned to benefit from the AI boom

With markets calming following the easing of US-China trade tensions, May presents a timely opportunity to strengthen your portfolio with high-potential tech stocks. Here are three top picks that are leading the charge in artificial intelligence and data infrastructure.

1. Nvidia (NVDA) – Powering the AI Revolution

Nvidia remains at the heart of the AI ecosystem. Its graphics processing units (GPUs) are the industry standard for AI development, dominating the global GPU market with more than 80% market share.

What sets Nvidia apart is its CUDA software platform, which makes it easier for developers to unlock the full power of its chips. Add to that a robust library of AI tools and frameworks, and you get a company embedded in every stage of modern AI deployment.

Big Tech continues to spend heavily. Major cloud providers—Amazon, Microsoft, and Google—are expected to invest $250 billion this year alone in data centre capacity. Nvidia believes AI infrastructure spend will top $1 trillion by 2028.

Despite its recent gains, Nvidia stock still looks attractively valued with a forward P/E of 28 and a PEG ratio of 0.56—well below 1, which signals potential undervaluation.

2. Advanced Micro Devices (AMD) – A Rising Challenger in AI Inference

While AMD trails Nvidia in GPU market share, it’s quietly carving out a strong position in AI inference—the process of using trained models to make real-time decisions. This is expected to become an even larger market than training.

On its most recent earnings call, AMD announced that one of the largest AI model developers is already using AMD’s GPUs for a significant portion of its daily inference processing. Major cloud platforms are also adopting AMD hardware to power generative AI applications like search, ranking, and recommendations.

Additionally, AMD is a market leader in data centre CPUs, where it's gaining ground against rivals. With CPUs playing a critical role in AI workloads, AMD’s balanced position in both GPU and CPU markets makes it a strong AI infrastructure contender.

Its valuation remains appealing, trading at a forward P/E of 27.5, offering significant growth potential.

3. Taiwan Semiconductor Manufacturing Company (TSMC) – The World’s Leading Chip Manufacturer

TSMC is the world’s foremost semiconductor foundry, producing chips for industry giants like Nvidia. As chip design companies increasingly outsource fabrication due to its complexity and cost, TSMC becomes an indispensable partner in the AI supply chain.

The company’s massive scale and advanced technology allow it to deliver cutting-edge chips at high efficiency. With sustained investment in R&D and expansion—including new facilities in the United States—TSMC is securing future growth.

Its ability to meet rising demand while maintaining pricing power has helped support strong margins and profitability. TSMC currently trades at a forward P/E of 20.5 and a PEG ratio of 0.62, making it a compelling value in the semiconductor space.

Invest with Confidence in AI-Driven Growth

All three companies—Nvidia, AMD, and TSMC—are positioned to benefit from the continued expansion of AI infrastructure. As cloud computing, machine learning, and data processing demands surge, these tech leaders are set to deliver long-term returns.

With attractive valuations and robust fundamentals, May could be the ideal time to add these forward-thinking companies to your investment portfolio.

Source: (MotleyFool.com)