In this article, we explore the 8 Best Blue Chip AI Stocks to Buy Now.
The sell-off in software stocks amid artificial intelligence shows no signs of slowing down. The S&P 500 has fallen as worries grow about the impact of this transformative technology on software companies. Even large tech firms announcing major AI investments have not yet found relief in the broader market downturn.
Nevertheless, the indiscriminate sell-off around AI is more of an opportunity than anything else. While the overall industry is suffering a reality check similar to what dot-com names experienced in early 2000, solar stocks in 2012, and cannabis stocks in 2019, the world still needs AI solutions.
Jeremy Siegel, professor emeritus of finance at Wharton, says the long-term outlook for AI stocks remains strong. “These [AI companies] are real firms with real cash flows, not concept stocks,” Siegel said.
Jessica Rabe of DataTrek Research agrees, noting that AI companies are not burning cash. “These companies have much better fundamentals now than in the late 1990s,” Rabe said.
Citi analyst Heath Terry sees the AI stock decline as a price reset, not a crisis, since profit growth for AI remains likely this year and next.
The deep pullback in blue-chip stocks could be a short-lived correction, as valuations had gotten out of hand. With that in mind, let’s take a look at some of the best blue-chip AI stocks to buy now.
Our Methodology
To compile the list of the Best Blue Chip AI Stocks to Buy Now, we sifted through blue chip ETFs and settled on companies with a market cap of more than $10 billion. We trimmed the list to companies with significant exposure to artificial intelligence. We further focused on stocks with an upside potential of more than 30% as of March 31 and are popular among elite hedge funds in the fourth quarter of 2025. Finally, we have ranked the stocks in ascending order based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best Blue Chip AI Stocks to Buy Now
8. ASML Holding N.V. (NASDAQ:ASML)
Stock Upside Potential: 30.90%
Number of Hedge Fund Holders: 101
ASML Holding N.V. (NASDAQ:ASML) is one of the best blue-chip AI stocks to buy now. On March 26, Bernstein SocGen Group reiterated an Outperform rating on ASML Holding N.V. (NASDAQ:ASML) and raised the price target to $1971 from $1,911.
The reiteration comes amid expectations that the company is well-positioned to benefit from DRAM capacity build-out, accelerating from 145,000 additional wafers per month last year to 245,000 in 2026. The build-out is expected to increase to 330,000 wafers per month in 2027 and 435,000 wafers in 2028. The increase will come from the top three DRAM makers, adding about 1 million monthly wafer capacities between 2026 and 2028.
Consequently, the research firm expects ASML to ship 44 EUV machines to DRAM in 2028, representing 45% of its total EUV shipments. It would be a significant increase from 18 units shipped in 2025. The research firm has also raised the ASML EUV shipment estimate in 2028 from 79 to 92 units.
ASML Holding N.V. (NASDAQ:ASML) is the world’s leading manufacturer of lithography systems for the semiconductor industry. They design and build complex machines that use light to print tiny circuit patterns onto silicon wafers, enabling chipmakers like TSMC, Intel, and Samsung to mass-produce powerful, energy-efficient microchips for electronics.
7. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Stock Upside Potential: 33.29%
Number of Hedge Fund Holders: 224
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best blue-chip AI stocks to buy now. On March 30, Citigroup reiterated a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and raised the price target to NT$2,800 from NT$2,600.
According to Citigroup, the company is well-positioned to benefit from the accelerating artificial intelligence chip market. Consequently, the firm expects the company’s earnings per share to increase by 18% in 2027 to NT$130.72 and by 28% in 2028 to NT$165.99. Net profit is also projected to increase to NT$2.43 trillion in 2026 from NT$1.72 trillion in 2025. Revenue is projected to increase in 2026 to NT$5.12 trillion.
Citigroup also expects Taiwan Semiconductor’s artificial intelligence revenue to grow by over 100% into 2027. The increase would come on CoWoS’ packaging capacity, growing from 1.3 million wafers in 2026 to 2 million in 2027.
The robust revenue and earnings increase would come at the back of N3 and N2 capacity growth. The N2 node is projected to account for 29% of total revenue in 2027, up from 15% in 2026. Citigroup expects Nvidia to become the first A16 customer for its Feynman GPU in 2028, with Google and AWS AI chips migrating to N2 late 2027.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest independent semiconductor foundry, manufacturing advanced microchips for companies such as Apple, Nvidia, and AMD. It specializes in fabricating chips designed by others for use in smartphones, AI data centers, and automobiles, and holds roughly 72% of the global foundry market.
