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The market started to recover at the end of March, but it still has a way to go before returning to its highs. In particular, many tech stocks are even further off their highs than the broader market. I'm willing to bet that these stocks will start to recover in April and could even return to their all-time highs.
Three stocks that I think will rebound strongly in April are Nvidia (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing (NYSE: TSM), and ASML (NASDAQ: ASML). All are huge players in the AI arms race and show no signs of slowing down.
These three could see their stocks rebound as quarterly results trickle in
Although we won't have financial results from these three until late April or May, Taiwan Semiconductor (also known as TSMC) gives investors monthly updates on its revenue. In January, revenue was up 36% year over year, and in February, it was up 43%.
That doesn't look like a company that's slowing down, and with TSMC's unique position within the industry, it acts as a great bellwether stock for the tech sector.
It's a chip fabricator that supplies companies without production capabilities (like Nvidia and Apple) with manufacturing capacity. So, if TSMC's sales continue to climb, it's a sure sign that companies like Nvidia are doing just fine.
Nvidia had strong sales throughout 2023 and 2024, and 2025 is also expected to be quite strong. While we won't know the most recent results until May (which is when it reports is fiscal 2026 first quarter), management projects 65% revenue growth in the period, which is impressive considering the base it's starting from.
In addition, Nvidia CEO Jensen Huang is projecting that companies will spend $1 trillion to build out data centers by 2028. That is a huge tailwind for Nvidia stock.
As results start to trickle in from Nvidia's largest clients, the artificial intelligence (AI) hyperscalers, it will be evident that their massive capital expenditure plans for 2025 are still intact. This should ease fears of the business coming up against difficult headwinds and push the stock higher throughout the month.
ASML is in a unique position in the chip industry. It makes extreme ultraviolet (EUV) lithography machines, which lay tiny electrical traces on microscopic chips. It's the only company in the world with this technology, giving it a monopoly.
With TSMC announcing a $100 billion expansion into the U.S., it will need to purchase machines from ASML. As chip demand grows from the AI race, more ASML machines will be needed, which will become a strong tailwind.
All three of these companies are much cheaper now than they have been in some time, which is why I think each is a great buy now, even after they have started to rise a bit from their lows. From a forward price-to-earnings ratio (P/E) perspective, each is cheaper than it has been in around a year, which indicates that investors shouldn't be worried about overpaying for them.
This suggests that all three are solid buys for April, and their long-term outlooks are even better.
The future looks bright for this trio
As long-term investors, we're looking for short-term deals that allow us to buy the best companies at a discount. All three of these stocks are clearly trading at a discount, but each company's management team has also given fantastic guidance.
For a revenue outlook, ASML's management believes it can attain between 44 billion euros ($47.4 billion) and 60 billion euros ($64.7 billion) in sales by 2030. Considering that it generated around 28 billion euros ($30.2 billion) over the past 12 months, that's huge growth over the next five years.
As impressive as that is, TSMC's and Nvidia's revenue is expected to rise even faster. Taiwan Semiconductor's management believes it can grow its revenue at a 20% compound annual rate over the next five years, putting its total revenue at $224 billion. Nvidia's forecast is even more bullish when you consider Huang's projection of data center revenue.
Those are fantastic long-term predictions, and if each one of these companies hits those goals, they will not only beat the market, they will crush it. Investors should also keep these long-term projections in mind as fears of tariffs swirl around the market, since we're focused on the long run, not what will happen in April to affect these stocks.
With each stock still on sale from its recent highs, I think April is an excellent time to take a position, with the mindset of holding on to them for multiple years.
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Keithen Drury has positions in ASML, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
