Investors are encouraged to consider three major stocks for exposure to artificial intelligence (AI): Nvidia (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Broadcom (NASDAQ: AVGO). Nvidia plays a crucial role in AI through its graphics processing units (GPUs), while Taiwan Semiconductor manufactures the advanced chips that Nvidia uses. Broadcom contributes to AI infrastructure with its connectivity switches and custom AI accelerators, known as XPUs.
All three companies project significant growth in the coming years. Nvidia anticipates a rise in data center expenditures from $400 billion in 2024 to $1 trillion by 2028. Taiwan Semiconductor expects a compound annual growth rate of 45% for AI-related revenue over the next two years, leading to an overall growth rate near 20%. Broadcom’s AI-related semiconductor revenue is expected to soar from $12.2 billion in fiscal year 2024 to between $60 billion and $90 billion by fiscal year 2027.
These projections suggest that Nvidia, Taiwan Semiconductor, and Broadcom will be primary beneficiaries of rising AI investments, making them potential strong additions to investors’ portfolios.
