AI Drives Market Growth: Top Picks for 2027
Investors are preparing for the final stretch of 2026 and positioning themselves for 2027. One theme that is expected to dominate the market for the fifth year in a row is artificial intelligence (AI). As AI continues to transform businesses, there is not enough computing capacity available to meet demand.
The hardware suppliers, including Nvidia, Taiwan Semiconductor Manufacturing, and Micron Technology, are well-positioned to benefit from this trend. These companies are expected to see significant growth due to increased demand for AI computing equipment.
Nvidia is closing in on generating over $100 billion in quarterly revenue from its GPU computing units, with management expecting a 70% growth rate next year. Taiwan Semiconductor and Micron Technology are also poised for rapid expansion, with expected sales growth rates of 34% and 85%, respectively.
AI hyperscalers such as Amazon Web Services (AWS) and Google Cloud from Alphabet are also set to benefit from the AI build-out. These companies are already generating impressive results, with AWS experiencing a 37% year-over-year growth rate in Q2 and Google Cloud's growth accelerating to 82%.