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The world is going to need more data centers and chips for AI workloads. Nvidia's GPUs remain the preferred choice for data centers, and its stock offers attractive value at the start of 2026.
Amazon is investing billions in AI spending, and management expects client spend to shift in a massive way. Taiwan Semiconductor provides core AI services to multiple high-level clients.
Taiwan Semiconductor remains a bullish value proposition, driven by superior operating leverage, record profitability, and dominant AI exposure. Q4 2025 saw revenue of $33.73B (+25.5% YoY) and net income of $16B (+35%), with guidance implying continued sequential growth. TSM's premium valuation—$14.50 per $1 sales—demands sustained 30%+ revenue CAGR; risks include hyperscaler spending slowdowns...
Gartner forecasts AI spending to increase by about 37% in 2026. Taiwan Semiconductor Manufacturing is expected to benefit from this due to its role as a leading chip manufacturer for smartphones and data centers.
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