David Jagielski, The Motley FoolFri, Jun 27, 2025, 12:35 PM 5 min readIn This Article:The stocks listed here have all benefited from opportunities related to artificial intelligence.There is still much more room for these businesses to rise in value due to growth in the tech sector.Moreover, these stocks all trade at low earnings multiples and look incredibly cheap now.10 stocks we like better than Taiwan Semiconductor Manufacturing ›Invest in GoldIf you have $5,000 to invest in the market, one way to make the most of that money is to invest in stocks that have a lot of room for long-term growth, such as those involved in artificial intelligence (AI). Another way you can expand the potential of your investment is to focus on stocks that are also trading at cheap valuations, since they may be undervalued and possess even greater potential to generate significant returns.Three stocks that check off both boxes are Taiwan Semiconductor Manufacturing (NYSE: TSM), Alibaba Group Holding (NYSE: BABA), and Dell Technologies (NYSE: DELL). With their modest valuations and plenty of exposure to AI, these can be excellent stocks to buy with $5,000 today. Image source: Getty Images.A big player in the chipmaking world is Taiwan Semiconductor Manufacturing, or TSMC. The company is responsible for making the vast majority of the advanced chips in the world, supplying 90% of them. These include AI chips. And this leadership position makes it a crucial company for AI's present and future growth.Through the first three months of this year, sales totaled $25.5 billion, up 35% year over year. It generates high profit margins of around 40% as low-cost production in Taiwan gives it an advantage over chipmakers in North America. And the expertise it has developed over the years and economies of scale make its operations highly efficient.TSMC is an integral player in the AI world, and it would be hard to replace its production. As AI spreads, the company is likely to experience a significant uptick in demand.The stock currently trades at less than 23 times its future earnings (based on analyst estimates), which is an absurdly cheap valuation given that's roughly about the same multiple of the average S&P 500 stock.But TSMC is not an average stock, and it arguably deserves much more of a premium given its huge growth potential due to AI. Given the possible upside, this can be a great place to invest $5,000.China-based Alibaba Group is another tech company in the same part of the world that can make for a compelling AI investment. It has a broad business in China that encompasses cloud computing, e-commerce, digital media, and entertainment.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,173.07 +32.05 (+0.52%)Dow 3043,819.27 +432.43 (+1.00%)Nasdaq20,273.46 +105.54 (+0.52%)Russell 20002,172.53 +0.42 (+0.02%)VIX16.32 -0.27 (-1.63%)Gold3,286.10 -61.90 (-1.85%)PortfolioSign in to access your portfolioSign inTop gainersNKE NIKE, Inc. 72.04 +9.50 (+15.19%)SATS EchoStar Corporation 28.81 +3.35 (+13.16%)KTOS Kratos Defense & Security Solutions, Inc. 45.84 +4.51 (+10.91%)SNAP Snap Inc. 8.72 +0.58 (+7.13%)JHX James Hardie Industries plc 27.59 +1.82 (+7.06%)Top losersQS QuantumScape Corporation 6.62 -1.03 (-13.46%)NKTR Nektar Therapeutics 25.76 -3.92 (-13.21%)NEGG Newegg Commerce, Inc. 12.08 -1.49 (-10.98%)PLTR Palantir Technologies Inc. 130.74 -15.57 (-10.64%)MP MP Materials Corp. 32.90 -3.09 (-8.59%)Most activeNVDA NVIDIA Corporation 157.75 +2.66 (+1.72%)LCID Lucid Group, Inc. 2.1200 -0.0800 (-3.64%)PLTR Palantir Technologies Inc. 130.74 -15.57 (-10.64%)F Ford Motor Company 10.80 +0.17 (+1.60%)QS QuantumScape Corporation 6.62 -1.03 (-13.46%)Earnings eventsTrending tickers^GSPC S&P 500 6,173.07 +32.05 (+0.52%)PLTR Palantir Technologies Inc. 130.74 -15.57 (-10.64%)^DJI Dow Jones Industrial Average 43,819.27 +432.43 (+1.00%)BTC-USD Bitcoin USD 107,401.83 +423.57 (+0.40%)^IXIC NASDAQ Composite 20,273.46 +105.54 (+0.52%)Top economic eventsPowered by Money.com - Yahoo may earn commission from the links above.