5 Brilliant Stocks to Buy in June

Yahoo

2 days ago

Nvidia and Taiwan Semiconductor are still benefiting from the AI race.
Alphabet and Adobe are beaten down due to fears of AI replacing them.
Amazon investors should be focused on cloud computing, not commerce.
10 stocks we like better than Nvidia ›
As the calendar flips to June and we have nearly reached the halfway point of 2025, stocks are nearly flat for the year despite the turmoil in the market. As of the time of writing, the S&P 500 is basically flat for the year.
Although the landscape has shifted since 2025 began, stock prices are generally the same. That may worry some investors, but I'm focused on the long term, and it still looks bright for many companies.
If you shift your mindset from five months to five years, all five of these stocks look incredibly attractive, which is why I think they're solid buys for June.
Nvidia (NASDAQ: NVDA) is a leading artificial intelligence (AI) stock, providing graphics processing units (GPUs) widely used in training and running AI models. However, we haven't come close to the computing capacity needed to run an AI-first business approach across the entire economy, which is why Nvidia cites third-party estimates that data center capital expenditures will rise from $400 billion in 2024 to $1 trillion by 2028.
That's huge growth, and the company will be a massive beneficiary from that trend because it gets the majority of its revenue from GPUs specific to data centers.
The company crushed it during its 2026 first quarter (ending April 27), with revenue rising 69%. While some headwinds are brewing with its China business, Nvidia still offers a compelling growth case that makes me want to purchase more shares.
Taiwan Semiconductor Manufacturing (NYSE: TSM) is an even more neutral way to play the AI race, as nearly all high-tech companies use TSMC (as its known for short) as their chip foundry. Its business model is to offer the most advanced chip production available to attract clients that want to have their chips fabricated. Because it isn't marketing its own chips to its clients, it removes the conflict of interest facing other chip foundries.
Because it's one of the most widely used foundries in the world, it has phenomenal vision into the future, because chip orders are often placed years in advance. Over the next five years, management expects AI-related revenue to have a 45% compound annual growth rate (CAGR), and overall revenue to rise at nearly a 20% CAGR.
That's impressive growth over five years, and the stock can still be purchased for around 21 times forward earnings, which is less than the S&P 500 trades at (22.1 times forward earnings). That's an incredible deal for a company expected to outgrow the market, making Taiwan Semiconductor Manufacturing a no-brainer buy in June.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is even cheaper than TSMC, at a mere 18 times forward earnings.
That's well below the S&P 500, and even further behind its big tech peers. There is a lot of pessimism surrounding Alphabet's stock, including AI disruption and a potential breakup forced by the U.S. government. This has caused the stock to drop and have a less-than-market multiple, but I think that's a mistake.
The company already entered the AI race and is offering AI-powered search and AI overviews to bridge the gap between traditional search and a full generative AI experience. And we're years away from learning the outcome of its various court cases.
As a result, I think the fear concerning Alphabet's stock is overblown, and I think it's an excellent value play right now.
Adobe (NASDAQ: ADBE) faces the same AI-induced fears as Alphabet does. Investors are worried that images created by generative AI could steal market share from Adobe.
But most of these image-creation engines lack the control that a product like Adobe provides. Furthermore, its Firefly -- its own generative AI software -- dovetails nicely into its existing product line. Adobe hasn't seen a ton of disruption yet, and its revenue is still rising at a steady pace.
The stock trades around 20 times forward earnings. That's a cheap price tag, especially when you consider the pace at which the company is repurchasing shares, which will cause its earnings per share (EPS) to rise much faster than revenue.
This makes Adobe a great value pick for June. If you're patient, the stock will reward shareholders with market-beating performance.
Lastly, Amazon (NASDAQ: AMZN) has many investors worried about how tariffs will impact its e-commerce business, which is a reasonable fear. However, they need to understand that the majority of the company's profit doesn't come from its commerce divisions; it comes from Amazon Web Services (AWS).
AWS is Amazon's cloud computing wing, and it accounted for only 19% of revenue in the first quarter. However, because its operating margin is superior to the commerce side of the business, it accounted for 63% of total operating profits.
As AWS goes, so will Amazon's stock, since it is the profit driver. Cloud computing benefits from two trends: AI and the general migration to the cloud. AWS is slated to grow rapidly over the next few years, which will push company profits higher because it accounts for the majority of the profits.
With the market concerned about how tariffs will affect Amazon's commerce business, I'm using its weakness to buy shares. I'm looking at it as more of a cloud computing play than a commerce one.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Adobe, Alphabet, Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Adobe, Alphabet, Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
5 Brilliant Stocks to Buy in June was originally published by The Motley Fool