The Motley Fool·2026-02-02 04:30Core Insights - AI spending is rapidly increasing, particularly in the computing sector, with companies investing heavily to expand their computing capabilities [1] - Companies selling computing equipment are expected to thrive, presenting strong investment opportunities in the AI sector [2] Company Summaries Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the world's largest chip foundry, crucial for AI computing, producing logic chips for nearly all AI devices [3][4] - The company plans to invest between $52 billion and $56 billion to increase production capacities, anticipating a nearly 60% compound annual growth rate (CAGR) in AI chip revenue from 2024 to 2029 [6][7] - Current market cap is $1.7 trillion, with a gross margin of 59.02% and a dividend yield of 0.93% [6] Nvidia - Nvidia is a leading name in AI, known for its GPUs that dominate AI data centers, with a market cap of $4.6 trillion and a gross margin of 70.05% [8][10] - Analysts project a 52% revenue growth for Nvidia in FY 2027, with global data center capital expenditures expected to rise to $3 trillion to $4 trillion annually by 2030 [10] Broadcom - Broadcom is focusing on designing application-specific integrated circuits (ASICs) for AI workloads, which can provide better performance at lower costs compared to general-purpose GPUs [11][13] - The company expects revenue from AI semiconductors to double in Q1, indicating strong momentum in the AI sector [13]