This is an election year in the United States, and it’s increasingly looking as though U.S. citizens will be treated to a Biden-Trump rematch. If President Joe Biden can successfully surmount his opponent, investors should expect a continuation of the well-known Biden administration’s legislative achievements. Notably, the administration has signed several legislations, including the CHIPS Act, the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act. All of these have earmarked billions of dollars of investment in various sectors related to renewable energy, semiconductor manufacturing and infrastructure.

Here are three smart Biden stocks to choose from in anticipation of a second Biden presidency.

Taiwan Semiconductor Manufacturing Company (TSM)

It is no secret that Taiwan Semiconductor Manufacturing (NYSE:TSM), sometimes dubbed TSMC, has been courted by the current administration to build semiconductor manufacturing facilities in the United States. From the Biden administration’s point of view, this will not only create manufacturing jobs in the U.S. but will also help keep semiconductors, a vital part of the modern digital economy, in the United States.

If Biden were to win his reelection, I believe investors should expect more of the same policy incentives to entice contract manufacturing behemoth TSMC to set up factories in the U.S.

The company specializes in advanced manufacturing processes, such as 5-nanometer and 3-nanometer technologies, enabling smaller, faster and more power-efficient chips. Due to its competencies in chip manufacturing, TSM also plays a key role as a supplier of AI chips for ChatGPT. Not to mention, its shares trade at an attractive multiple of 17 times forward earnings, well below many of its semiconductor counterparts.

A recent earnings report from TSMC saw the company boost its outlook for 2024 due to what it sees as a rising demand for chips.

First Solar (FSLR)

Renewable energy companies will also likely benefit if Biden administration policies remain intact. President Joe Biden signed the Inflation Reduction Act (IRA) into law in August 2022, earmarking billions in subsidies for renewable energy companies. These economic incentives have led solar panel manufacturer First Solar (NASDAQ:FSLR) to formulate plans for a new $1.1 billion manufacturing site in Louisiana.

Despite investor sentiment souring on clean energy stocks in 2023, First Solar, with its relatively low forward earnings multiple of 11x, could be a good bet in 2024. Moreover, as analysts predict interest rates will decrease in the latter half of 2024, investors can expect First Solar to ramp up manufacturing in the coming quarters.

NextEra Energy (NEE)

NextEra Energy (NYSE:NEE) is the second renewable energy stock to make this list. Similar to a plethora of renewable energy stocks, NextEra Energy, which has a number of solar and wind assets in its portfolio, had a rough time in 2023. In fact, shares fell more than 25%. However, this slip in valuation could be a good buying opportunity for investors betting on the continuation of renewable energy economic incentives from a second Biden term.

NextEra has fully committed to renewable energy despite having started in the utilities space as a provider of electricity through natural gas. Now, not only does NextEra plan to sell the remainder of its natural gas pipelines by 2025, but the company also owns NextEra Energy Resources, the world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage.

Last year seemed to have been a record time for NextEra’s renewable energy business. In the first quarter of 2023, NextEra Energy benefitted tremendously from its solar and wind assets, reporting a net income of $1.522 billion on a GAAP basis, up 26% year-over-year (YoY), and $1.011 billion on an adjusted basis, up 24% YoY. Second quarter results also came in above Wall Street estimates. In the third quarter, NextEra beat earnings estimates, and its renewable energy and storage backlog totaled a record 21 gigawatts.

As the business continues to wean itself off of fossil fuels, it could be a prime beneficiary of a second Biden presidency.

On the date of publication, Tyrik Torres did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.