According to FactSet Research, AI developers are projected to spend $500 billion on infrastructure in 2023, driving significant growth in the semiconductor industry. Major players like Microsoft, Alphabet, Amazon, Meta Platforms, and OpenAI are ramping up data center construction and chip procurement, with expectations of continued investment through 2026.
In this landscape, Broadcom (NASDAQ: AVGO) and Taiwan Semiconductor Manufacturing (NYSE: TSM) are positioned as key beneficiaries. Broadcom is essential for providing networking equipment that supports AI workloads, while TSMC, holding a 70% market share in chip manufacturing, services leading chip designers like Nvidia and AMD, ensuring they can meet expanding demand. Analysts largely view these companies favorably, suggesting they are smart investment opportunities as the infrastructure boom unfolds.
