Stocks to Buy Today
Five top U.S.-listed AI and semiconductor stocks were chosen after Monday’s close, as the selection process became more selective amid rising oil prices and long-term yields. The picks emphasize consistent earnings growth, strong cash flow, and solid forecasts, rather than reacting to recent price surges.
Selective risk-on • Buy in tranches
U.S. cash market closed — premarket not yet open
Monday close / overnight
Stocks saw only a slight retreat, while the 30-year Treasury yield hit its highest level in decades. S&P 500 futures slipped about 0.4% overnight. Investors are watching for July housing starts and import/export prices at 8:30 a.m. ET, with Home Depot’s earnings call scheduled for 9:00 a.m. ET. The July FOMC minutes are set for release Wednesday at 2:00 p.m. ET.
24% weight
NVIDIA
Nvidia (NASDAQ:NVDA)
The upcoming earnings report provides a clear snapshot of near-term demand for AI computing. Shares finished nearly unchanged on Monday, while memory and equipment stocks advanced, making this a less stretched entry point compared to the day’s top performers.
Price and analyst forecast
$225.01 close
The average price target stands at $314.29, suggesting a potential upside of 39.7%. With targets spanning a notably wide range, this average serves more as a reference point than an indication of fair value.
Latest confirmed results
Q1 FY27 revenue $81.6B
Revenue climbed 85% from a year earlier, with Data Center revenue hitting $75.2 billion, a 92% increase. Non-GAAP EPS came in at $1.87.
Forecast and valuation
Q2 revenue guide: $91.0B ±2%
The forecast excludes any revenue from China Data Center compute. The forward price-to-earnings ratio stands at roughly 25.2 times.
Model entry
First tranche at or below $225
Consider buying around $215, but only if yields steady. Avoid chasing a premarket jump above $232.
Next check
August 26, after close
Investors will be watching second-quarter FY27 results closely, with a particular focus on demand for the Rubin system, growth in networking, and how gross margins are tracking.
A revenue or margin shortfall, given high expectations, could quickly put pressure on the multiple. Ongoing restrictions in China continue to limit forecasts.
Micron Technology
Micron Technology (NASDAQ:MU)
Micron stands out with the sharpest earnings acceleration in the portfolio and the lowest forward earnings multiple. After Monday’s 4.1% gain, a limit order may be wiser than chasing the stock at market price.
Price and analyst forecast
$1,011.75 close
The average price target stands at $1,259.97, suggesting a 24.5% upside. Targets vary widely depending on memory cycle forecasts.
Latest confirmed results
Q3 FY26 revenue $41.46B
Revenue increased from $23.86 billion in the previous quarter. Non-GAAP earnings per share came in at $25.11, while adjusted free cash flow totaled $18.3 billion.
Forecast and valuation
Q4 revenue guide: $50.0B ±$1.0B
The company projects non-GAAP EPS of $31.00, plus or minus $1.00, and trades at a forward P/E of roughly 6.5 times, highlighting exposure to cyclical trends.
Model entry
Start at $990 or lower
Consider a second purchase if shares approach $950, but hold off on buying above Monday’s intraday peak of $1,035.96.
Next check
Fiscal Q4 report
HBM4 shipments are on track, pricing remains resilient, gross margins are holding close to the guided 86%, and the company continues to exercise supply discipline into FY27.
Memory prices tend to move in cycles, and factors like increased supply, customer inventory adjustments, or pressure on HBM pricing could challenge current margin expectations.
Alphabet
Alphabet (NASDAQ:GOOGL)
Alphabet provides direct access to enterprise AI and advertising, trading at the most reasonable large-platform valuation in the portfolio. Growth in its cloud segment and a strong backlog reinforce the investment case. Monday’s 0.5% dip offers a steadier entry point compared to high-flying semiconductor stocks.
Price and analyst forecast
$344.00 close
The average price target stands at $426.40, indicating a potential 24.0% upside. The consensus rating is Buy, with target estimates ranging from $340 to $515.
Latest confirmed results
Q2 revenue $119.8B
Revenue grew 24%, while operating income jumped 30% to $40.8 billion. Cloud revenue surged 82% to $24.8 billion.
Forecast and valuation
Cloud backlog: $514B
Management anticipates robust growth in Cloud, though near-term margins may see slight pressure due to third-party capacity costs. The forward P/E stands at approximately 16.6 times.
Model entry
Buy below $344
Consider adding around $330 if rising bond yields weigh on long-duration growth stocks.
Next check
Q3 operating update
Cloud backlog is being converted, Search is growing despite tougher year-over-year comparisons, and the company is executing within its $195 billion to $205 billion full-year capex guidance.
The investment cycle is draining cash, with second-quarter free cash flow at minus $5.9 billion as capital expenditures climbed to $44.9 billion. Uncertainties also linger around regulation and AI search monetization.
Applied Materials
Applied Materials (NASDAQ:AMAT)
Applied Materials continues to see robust demand for AI-focused wafer equipment and advanced packaging. Monday’s 5.5% rebound lifts momentum, but the higher entry point means the position is held at a lighter weight.
Price and analyst forecast
$535.31 close
The average price target is $640.17, suggesting a potential upside of 19.6%. While analyst ratings are generally positive, the stock price continues to show significant volatility.
Latest confirmed results
Q3 FY26 revenue $9.12B
Revenue climbed 25% from a year earlier, while non-GAAP EPS hit a record $3.50, up 41%. Operating cash flow totaled $3.04 billion.
Forecast and valuation
Q4 revenue guide: $10.25B ±$0.50B
The company forecasts non-GAAP EPS at $4.02, plus or minus $0.20, with a forward price-to-earnings ratio around 29.5.
Model entry
Wait for $520 or lower
Allocate $500 for a second tranche; Monday’s close, following a 5.5% gain, isn’t an optimal point for a full-position entry.
Next check
August 20 ex-dividend
Watch for fourth-quarter deliveries, advanced packaging growth projected to exceed 70% by 2026, and gross margin holding near the guided 50.4%.
The stock reflects expectations of a prolonged equipment upcycle, but postponed fab investments, export restrictions, or margin squeeze from expanding capacity may challenge its current valuation.
Taiwan Semiconductor Manufacturing
Shares of NYSE:TSM
TSMC serves as the portfolio’s core foundry holding, with revenue, margins, and next-quarter guidance all reflecting strong demand for advanced nodes. The ADR gained 1.1% on Monday, and a phased approach to entry helps manage geopolitical and capital expenditure risks.
Price and analyst forecast
$430.97 close
The average price target is $524.25, suggesting a potential upside of 21.6%. Price targets range widely from $330 to $650, reflecting significant uncertainty.
Latest confirmed results
Q2 revenue $40.20B
Revenue climbed 33.7% from a year ago, while net income and diluted EPS jumped 77.4%. Gross margin stood at 67.7%.
Forecast and valuation
Q3 revenue guide: $44.6B–$45.8B
The company projects a gross margin between 65% and 67%, and an operating margin of 56% to 58%. Its forward P/E ratio stands at approximately 27.4 times.
Model entry
Start at $425 or lower
Consider adding near $410, but keep the first tranche small if overnight futures stay weak.
Next check
September monthly sales
Monitor Q3 revenue trends, advanced node utilization, and the impact of overseas fab expansion on margins.
The company’s ADR remains closely tied to geopolitical risks in Taiwan. Aggressive global expansion could pressure margins if capacity utilization or pricing fails to meet expectations.
Forecast and valuation comparison
| Ticker | Price | Forecast | Fwd P/E | Avg target | Upside | Entry |
|---|---|---|---|---|---|---|
| NVDA | $225.01 | Q2 FY27 rev. $91.0B ±2% | 25.2× | $314.29 | 39.7% | ≤$225 |
| MU | $1,011.75 | Q4 FY26 rev. $50.0B ±$1.0B | 6.5× | $1,259.97 | 24.5% | ≤$990 |
| GOOGL | $344.00 | Strong Cloud growth; slight FX headwind | 16.6× | $426.40 | 24.0% | ≤$344 |
| AMAT | $535.31 | Q4 FY26 rev. $10.25B ±$0.50B | 29.5× | $640.17 | 19.6% | ≤$520 |
| TSM | $430.97 | Q3 rev. $44.6B–$45.8B | 27.4× | $524.25 | 21.6% | ≤$425 |
Prices reflect official closing levels from Monday. Forward multiples and analyst targets are consensus figures from third parties, reviewed prior to this update; some data may not update in real time. Targets are subject to change, may lag after sharp market moves, and do not offer guarantees.
Portfolio structure
How the model ranks today’s list
Let the first data and price discovery pass
Premarket trading begins at 4:00 a.m. ET, with the main cash session starting at 9:30 a.m. ET. Use limit orders exclusively: allocate 40% of each planned position following the 8:30 a.m. ET release of housing and import-price data, another 30% after the opening 30 minutes of regular trading, and reserve the remaining 30% for the second-tranche price levels indicated. Cancel purchasing orders if both Brent crude and Treasury yields climb while Nasdaq futures weaken.
Good reports, weaker entries today
Long-term prospects remain solid. Shares jumped 8.9% Monday, building on last week’s 35.4% surge. However, entry risk is now elevated.
AI optics demand continues to provide support, but after a 7.8% jump to $351.22 in a single session, there’s limited margin for error on entry.
AI server demand continues to underpin the investment case, but with shares recently reaching $514 and fiscal Q2 results scheduled for September 3, investors may want to wait for a clearer base or the upcoming earnings report.
7.4/10
Constructive, not complacent
Earnings and forecasts remain robust throughout the sector, though a heavy focus on semiconductors, rapid recent gains, and higher discount rates prevent the score from reaching aggressive-risk levels.
Oil and long-term yields are the immediate pressure points
Brent crude has climbed above $91, and the 10-year Treasury yield is near 4.74%, tightening financial conditions even as the VIX stays low. Another jump in energy prices could stoke inflation worries and pressure high-multiple AI stocks. Investors will also watch Wednesday’s FOMC minutes for signs of deeper policy divisions than markets are pricing in.