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Key Points
- If you missed out on Nvidia, consider the company that builds its AI chips.
- AI-powered robots are set to boost Amazon’s profit margins — and deliver handsome gains to investors.
The AI market is projected to grow to $4.8 trillion by 2033, according to the United Nations Conference on Trade and Development. Companies that can harness this technology may deliver substantial shareholder returns.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing Company (TSMC), listed on NYSE as TSM, holds a commanding 70% share of the global semiconductor manufacturing market, serving major clients including Apple and Alphabet. TSMC reported over 11,878 distinct products for 522 customers last year and has experienced an 18% annual growth in revenue since its IPO in 1994. Its earnings surged by over 60% to $2.47 per ADR in Q2, driven by AI chip sales.
Amazon
Amazon Web Services (AWS) is the largest cloud computing platform, projected to reach $1.2 trillion in revenue by 2030, according to Goldman Sachs. Despite competition, AWS remains a dominant $100 billion business with over 30% operating margins, and Q2 sales grew by 17%. Recent partnerships, including one with OpenAI, are expected to enhance growth. Additionally, Amazon plans to invest in automation, recently deploying its one millionth robot, which could lower labor costs in fulfillment centers.
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