3 AI Stocks to Buy Hand Over Fist

Group 1: AI Industry Overview - Artificial intelligence (AI) is considered the story of the decade, with investment focus shifting from chatbot stocks to companies that enable AI, such as chip foundries, deployment platforms, and supporting software [1][2] - The AI market is likened to a construction project, emphasizing the importance of raw materials, skilled builders, and quality inspectors, highlighting the often-overlooked suppliers profiting from AI advancements [2] Group 2: Company Insights - Taiwan Semiconductor Manufacturing (TSMC) is central to the AI supply chain, reporting a 39% year-over-year revenue increase to $30.1 billion in Q2, with net income rising 61%. Advanced process technologies below 7 nanometers now account for 60% of wafer revenue, up from 52% the previous year, enhancing margins as demand for advanced chips grows [4][5] - TSMC's competitive edge lies in its scale and execution, maintaining a dominant position in AI chip manufacturing with a 70% foundry share, while competitors like Intel and Samsung struggle to keep pace [5][8] - Meta Platforms has successfully integrated AI into its business model, achieving a 22% year-over-year revenue increase to $47.5 billion in Q2, driven by AI-enhanced ad targeting. The company invests over $17 billion quarterly in AI infrastructure, leveraging its substantial free cash flow [6][7][8] - Meta's extensive user base across platforms like Facebook, Instagram, and WhatsApp creates a flywheel effect, where increased data improves AI performance, leading to better ad results and higher rates [9]