Nvidia, Micron Technology, and Taiwan Semiconductor Manufacturing Company (TSMC) are positioned to benefit significantly from a projected $700 billion in AI infrastructure spending in 2023 by the five largest hyperscalers. Nvidia’s revenue surged to $215.9 billion for the fiscal year ending January 2026, with a 73% year-over-year growth last quarter. Micron experienced a 57% revenue increase and gross margins rising to 56% last quarter, largely due to soaring demand for high-bandwidth memory (HBM) amid AI chip shortages.
TSMC, the largest foundry globally, reported a 25.5% year-over-year revenue increase last quarter and anticipates its AI-related revenue will grow at over 50% annually through 2029. The company’s strategic pricing power allows for a planned increase in service rates over the next four years, solidifying its dominant market position.
Overall, these companies are not only witnessing substantial growth but are also attractively valued, with Nvidia trading at a forward price-to-earnings (P/E) ratio of 22, Micron at 11.5, and TSMC at 24.
