GET IN EARLY! I’m Watching These 3 AI Chip Stocks (Even Over NVIDIA Stock)

All right, here's a hot take for you. Fundamentally speaking, Nvidia isn't the hottest stock out there. Now, in Wall Street Zen's quant rating system, it does earn a B, which is above average, but it's not the highest grade there is. So, if you're interested in exploring stocks with a higher rating and more superior fundamentals, let's talk about it. I want to share with you three other AI chip stocks that all grade higher than Nvidia and that most people aren't even looking at. First, I want to start with Taiwan semiconductor, ticker symbol TSM. But before I dig in, I should probably tell you who I am. My name is Jacob Wade. I'm a financial coach that helps high income earners retire early. And if you like timely financial news just like this, hit the thumbs up button below. It helps me know to keep making more videos just like this one. And remember, the video should not be considered personalized investment advice. So, always do your own due diligence before buying or selling any stocks. All right, back to Taiwan Semiconductor Manufacturing. Here's the simplest way to understand this specific company. Taiwan Semiconductor doesn't design chips, they build them. Now, Nvidia designs a chip and then hands it to Taiwan Semiconductor to actually manufacture it. The same with Apple, same with AMD, same with a huge chunk of the entire AI world. Every advanced chip on the planet runs through this one company's factories, picks and shovels for the entire AI gold rush. And business is booming. In the most recent quarter, earnings came in over 60% higher than the same quarter a year ago. Not revenue. I'm talking earnings. Up more than 60% year-over-year. And that wasn't a one-time pop. This company has beaten Wall Street's earnings estimates quarter after quarter after quarter. And this isn't a thinly followed name. You've got five Wall Street analysts covering it and the consensus lands on a strong buy recommendation. But one in particular stands out. Now Medi Hoseni from Saskuhana who ranks in the top 1% of all analysts for stock picking performance. Their price target suggests the stock could see nearly a 50% upside from current levels as of the week that I'm recording this. So, when someone of that track record is pounding the table, it pays to listen. Also worth noting, even the minimum forecast suggests the stock could see a modest upside. And on the top end, there's over 60% potential upside according to the experts. Now, one thing I want to make sure I address head-on here. This stock is already up significantly over the past year. And I know what that does. It makes you feel like maybe you missed out. But here's why the move may not actually be over yet. The bottleneck in AI right now isn't chip design. It's advanced packaging. The technology for stacking these chips together, and Taiwan Semiconductor controls that specific capacity. Demand is booked out well into the future. So, I believe the runway here is about a whole lot more than what's already happened in the past. Now, here's where our own data comes in. On top of everything that Wall Street already sees, Taiwan Semiconductor earns an overall Zen rating of an A. That's a strong buy recommendation. And the overall fundamentals put the stock in the top 3% out of 4600 names that our system tracks. So, let me walk you through the details here. Our our system scores every stock across seven different components. And for Taiwan Semiconductor, the strong ones stack up beautifully. So on value, it comes in in the top 13%. The AI grade top 6% sentiment, which tracks what smart money is already doing, top 4%. Financials, top 2%, and the standout here, momentum in the top 1% of the entire market. Now, the one place it does get dinged is safety, which comes in at a C. And on top of that, the entire business sits on an island with real geopolitical questions hanging over it. That is the honest trade-off here. But a C on safety here means roughly middle of the road, not necessarily a red flag. And when you weigh it against the top 1% momentum, top 2% financials, and the simple fact that the entire AI industry cannot function without this specific company, the case tilts heavily toward the bulls. And by the way, finding these types of news stories and keeping a pulse on the market is exactly what Steve Wrightmeister, our editor-inchief here at Wall Street Zen, walks through in his free Monday training sessions at 700 p.m. Eastern time. You can sign up. Just scan the QR code right here and sign up for free or go to wall streetzen.com/live. Now, the next stock I have my eye on is Kulic and Sofa Industries. Ticker symbol KLIC. Now, say you've got the most advanced chip in the world. At some point, somebody has to physically connect it, bond it, and assemble it into something that actually works. Now, Culic and Sofa is one of the companies that makes the assembly and package equipment that this buildout runs on. They're a pick and shovels player in the exact packaging and assembly bottleneck I just told you about that's holding back the entire industry. Now, the growth story here is very public. Wall Street expects this company's earnings to grow around 92% a year going forward. To put that in context, that's roughly three times faster than the average for that industry that is already growing fast. And that fast growing earnings line is built on revenue that's forecast to grow close to 29% per year. So this isn't financial engineering. The earnings growth is riding real expanding sales here. And on top of that, the company has beaten earnings estimates four quarters running. So what does our system say about it? Well, Culich and Sofa earns an overall Zen rating of an A, a strong buy recommendation, and it lands in the top 1% of every single stock that we track. Now, walking through the components, sentiment lands in the top 8%, financials in the top 17%, but then it jumps. Growth comes in the top 3% and the standout here, momentum, is in the top 2% of the entire market. Value sits around the middle of the pack, which for a stock growing this fast is no knock at all, to be honest. Now, the one risk I will flag, the stock has had an enormous run, up nearly 200% over the past year. So, this is not a quiet buy it and forget it kind of name and it can be volatile. But here's why I'm still watching it closely rather than just riding it off as too late. The AI packaging buildout is still in the early innings here and Kulic Sofa sells the equipment that the buildout requires. So, the earnings growth ahead may well justify the price that looks steep in the rearview mirror. And speaking of names that the market is mispricing right now, the third company on my list is actually falling. And I think that pullback is an opportunity. But before we move on to my next pick, if you're getting value out of these type of breakdown videos, then consider hitting the subscribe button below. We publish datadriven stock analysis like this every single week, and I'd hate for you to miss the next one. All right, so here's something you don't see very often. a toprated AI chip stock that's actually on sale right now because while most of these names have been running, this one has dipped. And as of this week I'm recording, it's down more than 20% in just the past month. And I think that's exactly why it's worth a look. So, let me back up and tell you what it is and why you should consider it. This company is Integress, ticker symbol ENTG. If culic sofa makes the machines, Integris makes the stuff that flows through them. Specialty chemicals, ultra pure materials, contamination control. Every single chip fabrication plant on Earth burns through these materials constantly every single day. It's a toll booth on the entire industry. Chips get made. Integris gets paid. Yes, that does run. You're welcome. Now, this isn't a story about someday. In the last two quarters, Integris actually beat Wall Street earnings estimates. This is the toll birth working exactly the way that it should. The more chips the industry makes, the more of this company's materials get consumed quarter after quarter. And the growth ahead is serious. Wall Street forecasts earnings growth of around 47% a year going forward. That's roughly double the average for its industry and well ahead of the broader market as well. Now, Wall Street is definitely paying attention here a way that it wasn't in our last pick. You've got nine analysts that are actually covering Integris landing on a buy recommendation. And the most bullish of them is an analyst from UBS who ranks in the top 1% for performance. And he believes the stock has a nearly 60% upside potential from current levels. And by the way, analyst recommendations are updated frequently. So the best way to stay up to date on the stocks that you're interested in is just to add them to your free watch list on wall streetzen.com. Again, you can just click the link below or just scan the QR code on the screen right here to sign up. Now, our Wall Street Zen ratings back this entire thing up. Integris earns an overall Zen rating of an A. An A is a strong buy recommendation. The overall fundamentals put it in the top 2% of every single stock that we track here. Now for the component grades, momentum comes into the top 16%, growth in the top 12%, sentiment in the top 9%, safety in the top 6%, and notice that specifically of all the three companies today, this is the one with the best safety grade. And then there's the standout grade, which is very fitting for a video about AI chips. The artificial intelligence grade itself is in the top 4% of the entire market. I'll say this is the only one of my three picks here where the AI factor is the single highest mark on the card. Now, what that grade measures is a price pattern our model ties to future outperformance. Now, I will say where I'd pump the brakes on this is potentially the balance sheet. Integris carries more debt than the other two names today and debt slightly higher than its total equity. In a higher rate world, that's definitely something worth watching. But set that against the best safety score in the group, a top 4% AI grade, and a stock that's already down 24%. And what you've got is actually a high quality toll booth on the AI boom, which is on sale with top tier analysts pounding the table as a buy recommendation. That's a combination that I'll take a close look at every single time. And by the way, if you like stock talk like this, then I once again remind you, check out Wall Street Zen's nocost live training sessions. You can join our editor-in chief Steve Wrightmeister on Mondays at 700 PM Eastern time. And he doesn't just talk about what he's buying, but how he's finding the stocks so you can do the same in the days ahead. He also shares his trade of the week, combining the best of the Zen ratings with his 40 plus years of investing experience. So, if you're liking this type of content, I strongly recommend just pause the video for a sec and scan the QR code on the screen right here or register for free at wall streetzen.com/live. It's free, but you do need to sign up to join. Okay, so let's bring it home here. There's three stocks, three different links in the same chain. And between the three, you cover the bases of the big AI buildout that's underway. And every single one of them grades higher in our system than Nvidia. And here's the good news. The Zen ratings are updated daily. So type in any of these tickers. Just go to watchres.com and you can look up any stock, over 4,600 of them, and you can see the current rating for yourself live right now. And if you want to stay up to date on that, you can just bookmark the site while you're at it. And now, let me turn it over to you. Of these three picks, which one are you most interested in? And is there an AI chip name that I didn't mention that maybe you think deserves a spot? Drop it in the comments below and let's talk it all through as a community. And if you want to check out another corner of the market that's actually full of opportunities, we just put together a breakdown of the best quantum computing stocks to buy right now. You'll see a video pop up on the screen right now where we go through it, and you can see all the details right here.