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The five largest hyperscalers—owners of massive data centers—are set to spend more than $700 billion on artificial intelligence (AI) infrastructure this year, an amount larger than the GDP of most countries. Against this backdrop, three AI-focused stocks are positioned to benefit from the buildout.
Nvidia is positioned as a key supplier of AI infrastructure. The company’s revenue has surged eightfold over the past three years, reaching $215.9 billion for fiscal year 2026 ended in January. Revenue also continues to accelerate, rising 73% year over year in the most recent quarter.
While Nvidia is widely known for its graphics processing units (GPUs), the company has expanded beyond chips. Its networking business has been the fastest-growing segment, with revenue up 264% last quarter to $11 billion. Nvidia is also offering end-to-end AI server solutions, which it says could help it capture a larger share of AI spending.
AI chips require high-bandwidth memory (HBM) to perform at their best. Demand for AI chips is driving demand for HBM, while supply remains constrained. HBM manufacturing is more complex and requires upwards of three times the wafer capacity of ordinary DRAM, contributing to tight conditions across the DRAM market and increasing prices.
As one of the major DRAM manufacturers—alongside Samsung and SK Hynix—Micron is positioned to benefit from this imbalance. In the latest quarter, Micron’s revenue rose 57% year over year. Gross margins improved from 38.4% a year earlier to 56%, supporting gains in profit and cash flow.
Micron’s shares are also described as relatively inexpensive due to the company’s historically cyclical business. The stock trades at a forward price-to-earnings (P/E) multiple of 11.5 times fiscal 2026 analyst estimates (ending in August) and just over 8.5 times the fiscal 2027 consensus. Micron has been seeking longer-term contracts for HBM, and the article notes that reducing cyclicality could create upside given the long-term growth outlook for AI infrastructure.
Taiwan Semiconductor Manufacturing (TSM) is expected to benefit from AI data center spending as the largest chip foundry in the world. The company’s technological expertise and scale give it a dominant position in producing advanced logic chips such as GPUs, making it a close partner to chip designers including Nvidia and supporting pricing power. The article also states that TSMC has already outlined a four-year planned price increase for its services.
TSMC’s growth has been strong. Revenue increased 25.5% year over year in the latest quarter. The company also reported a 37% increase in revenue in local currencies for January and a 22% rise for February. TSMC is projecting that its AI-related revenue will grow at a more than 50% annual pace through 2029.
Valuation is described as attractive as well, with the stock trading at a forward P/E of 24 times fiscal 2026 analyst estimates. Combined with the growth outlook, the article characterizes TSMC as a top AI stock to own.
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