Billionaires Back Amazon and TSMC as Top AI Stocks

The AI infrastructure build-out is one of the hottest trends in the stock market since the internet's proliferation in the mid-to-late 1990s. Billionaire asset managers have flocked to two industry leaders with sustainable competitive advantages, and they're not Nvidia or Alphabet.

Form 13F filings show that Wall Street's top money managers have chosen Amazon and Taiwan Semiconductor Manufacturing as their preferred AI stocks. Amazon's Web Services (AWS) has seen tremendous growth since integrating generative AI and large language model capabilities, with year-over-year sales increasing to a 37% high in the June-ended quarter.

TSMC is foundational to the AI infrastructure build-out, providing chip-on-wafer-on-substrate (CoWoS) capacity that's essential for rapid data transfers in AI-accelerated data centers. The company has been expanding its CoWoS capacity at a breakneck pace and has had little trouble locking in future orders at advantageous prices.