Nvidia is one of the most popular AI stocks right now because of its lead in the semiconductor space. The company's graphics processing units (GPUs) have been used in data centers for years, and once tech giants began competing for generative AI dominance, the chips were even more in demand.

Nvidia and TSM are two AI stocks that are trading at reasonable valuations and remain well-poised to deliver outsized returns.

Broadcom (NASDAQ: AVGO) has been an outstanding investment over the past three years, as shares of the semiconductor giant have shot up an impressive 240% during this time and outpaced the 27% gains clocked by the PHLX Semiconductor Sector index over the same period.

It’s been a record-breaking year for artificial intelligence darling Nvidia’s stock, with analysts overwhelmingly bullish about the year to come.