Hyperscalers are pouring billions into AI infrastructure, shrugging off bubble fears as data center spending surges. With global AI chip demand exploding at a 41.1% CAGR to $223.95 billion by 2030, three chip giants stand poised to dominate.
TSMC Powers the Core
Taiwan Semiconductor Manufacturing (TSM), the world’s top foundry, crafts logic chips for nearly every AI device. Its Q4 2025 revenue hit $33.73 billion, up 20.5% year-over-year, with full-year sales topping $120 billion, a 31-36% jump. Trading at $332.71 as of late January 2026 with a $1.7T market cap, TSMC plans $52-56 billion in 2026 capex, up 25% from last year, targeting near-30% revenue growth.
Said TSMC’s Chief Financial Officer Wendell Huang during an earnings call, adding that the company’s profit margins have been increasing.
We expect our business to be supported by continued strong demand for our leading edge process technologies.
Nvidia’s GPU Reign
Nvidia (NVDA), at $191.12 with a $4.6T cap, owns 85% of AI accelerators. Analysts eye $320 billion FY2027 revenue, up 50% from FY2026’s $213 billion, as data center capex climbs from $600 billion in 2025 to $3-4 trillion annually by 2030. Its GPUs fuel hyperscalers’ buildouts, delivering unmatched performance.
Broadcom’s Custom Edge
Broadcom (AVGO), hovering at $331.22 and $1.6T market cap, challenges with ASICs tailored, cost-efficient AI chips. AI semiconductor revenue soared 74% to $6.5 billion in Q4 FY2025; Q1 FY2026 guidance hits $8.2 billion on a $73 billion backlog.
The Zacks Consensus Estimate for fiscal 2026 earnings is $9.69 per share, up 5.7% over the previous 30 days and indicating a 42.1% increase over the reported figure for fiscal 2025.
Outlook
These leaders thrive amid AI’s early innings, but risks like supply chains linger. Critically, TSMC’s capex bets signal sustained demand, Nvidia’s moat holds against rivals, and Broadcom’s backlog ensures diversification. Expect growth through 2026-2030, rewarding bold investors.
