Beyond Chips: AI Infrastructure Spending Is Projected to Hit $490 Billion -- Who Benefits Most?

Group 1: AI Market Overview - Artificial intelligence (AI) continues to drive stock market performance despite economic concerns such as high interest rates and a sluggish job market [1] - AI infrastructure spending is projected to reach $490 billion next year and could soar to $2.9 trillion by 2029, attracting significant investment into AI stocks [2] Group 2: Taiwan Semiconductor Manufacturing (TSMC) - TSMC holds approximately 70% of the semiconductor foundry market and is a key player in producing high-performance chips, particularly 3nm and 5nm chips [6] - The company is in high demand as it is one of the few capable of manufacturing 3nm chips and is working on mass production of 2nm chips [6] - TSMC is expected to benefit significantly from the AI infrastructure boom as it fabricates chips for major companies like Nvidia and AMD [7] Group 3: ASML - ASML is the sole manufacturer of extreme ultraviolet (EUV) lithography machines, essential for producing advanced semiconductor circuits [8] - EUV machines outperform deep ultraviolet (DUV) machines by using mirrors to reflect light, enabling the production of smaller and more powerful chips [9]