AI Infrastructure Spending Boosts Nvidia, SK Hynix, and Taiwan Semiconductor Manufacturing
Nvidia remains one of the top ways to invest in the AI infrastructure boom due to its rapid growth and low price-to-earnings ratio, trading at just 16 times fiscal 2028 analyst estimates.
The company's dominance in graphics processing units (GPUs) for AI model training, along with its CUDA software, gives it a wide competitive moat.
Nvidia has also developed other chips, such as central processing units (CPUs), data processing units (DPUs), and language processing units (LPUs), which are becoming increasingly important for agentic AI and inference.
Meanwhile, SK Hynix is the leader in the surging high-bandwidth memory (HBM) market, with more than 50% market share and a major $500 billion multiyear supply deal with Nvidia.
Taiwan Semiconductor Manufacturing (TSMC) has proven its ability to consistently produce advanced chips at high yields, giving it a virtual monopoly in the sector and strong pricing power.
With Alphabet and Amazon increasing their 2026 capital expenditure budgets and signaling they will spend even more in 2027, now may be a good time to invest in stocks set to benefit from this spending spree.