In the current market environment, identifying high-quality stocks suitable for immediate purchase and long-term holding is quite challenging. Such companies need to possess a solid operational foundation and diversified, sustainable growth paths. Their growth potential should also surpass the market average to avoid holding underperforming stocks that contradict the original intent of active investing.
As the parent company of Google, YouTube, Waymo, Android, and many other businesses, Alphabet’s foundation still lies in advertising revenue, particularly relying on the continuous innovation of its search engine. By integrating generative AI summaries into search results, this core business is expected to maintain its competitiveness and profitability for years to come. At the same time, Alphabet is rapidly emerging as a leader in the field of generative artificial intelligence, with its models gaining widespread recognition. Although the current revenue from this area remains limited, the potential for future growth is substantial.
Cloud computing is another key growth driver for Alphabet. Its Google Cloud ranks among the top three global cloud computing giants. As the influence of its AI model, Gemini, grows, this business is poised to replicate the rapid growth seen by Azure through its collaboration with ChatGPT. With its resources and execution capabilities, Alphabet has demonstrated strong prowess both in deepening its core business and expanding into new areas like artificial intelligence. Even if temporarily lagging, it has the ability to catch up quickly. This makes Alphabet a groundbreaking choice worthy of inclusion in an investment portfolio.
The production of cutting-edge chips globally heavily relies on TSMC. Due to the extremely high barriers to entry in the chip foundry industry, there are few competitors. The company has built a deep moat with its near-monopoly market position. TSMC continuously drives technological innovation, having begun mass production of 2-nanometer chips, which offer significant improvements in energy efficiency—reducing power consumption by 25% to 30% compared to the previous generation of 3-nanometer chips. Ongoing technological iterations ensure that its future products will outperform previous generations.
Investing in TSMC essentially means betting on the sustained and growing future societal demand for advanced chips. Additionally, TSMC is actively promoting the globalization of its production capacity by building foundries in the United States, Japan, Germany, and other locations. Considering TSMC’s technological leadership and industry indispensability, the long-term potential it embodies makes it a stock worthy of close attention and holding.
