Amazon commits $125 billion while Nvidia backs Baseten

Key Takeaways

• Amazon plans to invest over $125 billion in its AI program in 2026, anticipating a major shift to cloud services.
• Taiwan Semiconductor Manufacturing (TSMC) expects nearly 30% growth from AI chip demand and produces 85% of global start-up semiconductor prototypes.
• Nvidia continues to lead in AI hardware with new Rubin and Ferryman architectures and backed AI inference startup Baseten's $300 million funding round.
• TE Connectivity reported a 25% year-over-year increase in AI server component sales, indicating strong market demand.
• Micron Technology projects its HBM market to grow 100% in 2026 due to AI infrastructure buildout.
• Qualcomm plans to launch 150 Snapdragon-powered AI PC designs by 2026, capitalizing on the AI PC upgrade cycle.
• Microsoft CEO Satya Nadella emphasized the need for wider AI adoption to prevent a loss of public support.
• SoundHound AI expects its revenue to increase by 37% to $230 million in 2026, despite recent stock performance.
• Nansen launched an AI-powered onchain crypto trading product for all users on January 21, 2026, offering conversational trading.
• Software companies like Datadog, Fastly, and Atlassian face potential disruption from AI-native tools, while Google and Meta need to show clearer returns on AI spending.

Amazon and Taiwan Semi are top undervalued AI stocks

Amazon and Taiwan Semiconductor Manufacturing are two undervalued AI stocks to consider in 2026. Amazon plans to invest over $125 billion in its AI program in 2026, expecting a major shift from traditional IT spending to cloud services. Taiwan Semiconductor, a key player in AI production, makes 85% of global start-up semiconductor prototypes and saw sales rise 21% in Q4 2025. Both companies show strong growth potential in the booming AI sector.

Amazon and Taiwan Semi are top undervalued AI stocks

Amazon and Taiwan Semiconductor Manufacturing are two undervalued AI stocks to consider in 2026. Amazon plans to invest over $125 billion in its AI program in 2026, expecting a major shift from traditional IT spending to cloud services. Taiwan Semiconductor, a key player in AI production, makes 85% of global start-up semiconductor prototypes and saw sales rise 21% in Q4 2025. Both companies show strong growth potential in the booming AI sector.

Amazon and Taiwan Semi are top undervalued AI stocks

Amazon and Taiwan Semiconductor Manufacturing are two undervalued AI stocks to consider in 2026. Amazon plans to invest over $125 billion in its AI program in 2026, expecting a major shift from traditional IT spending to cloud services. Taiwan Semiconductor, a key player in AI production, makes 85% of global start-up semiconductor prototypes and saw sales rise 21% in Q4 2025. Both companies show strong growth potential in the booming AI sector.

TE Connectivity earnings reveal strong AI market

Electrical components maker TE Connectivity reported positive earnings and guidance on Wednesday. The company's results show that the artificial intelligence trade remains strong. This indicates a healthy demand for their products in the current market.

TE Connectivity beats earnings forecasts with strong AI demand

TE Connectivity Ltd. reported strong fiscal first-quarter earnings, beating Wall Street expectations with $2.72 EPS and $4.7 billion in sales. The company also announced a new $1.5 billion share repurchase program. CEO Terrence Curtin noted robust demand in data center and automotive markets, with AI server component sales up 25% year-over-year. These results highlight TE Connectivity's strong position in AI and electrification growth trends.

Nvidia TSMC lead AI hardware stocks for 2026 growth

AI remains a dominant theme in the stock market, with hardware companies like Nvidia and Taiwan Semiconductor Manufacturing (TSMC) expected to lead in 2026. TSMC anticipates nearly 30% growth from AI chip demand, while Nvidia continues to innovate with its Rubin platform and Ferryman GPU architecture. Both are projected to deliver high-20% returns in 2026. Meanwhile, software giants Alphabet and Meta Platforms, though investing heavily in AI, need to demonstrate clearer returns on their AI spending for strong 2026 performance.

Nvidia and Navitas Semiconductor compete in AI chip market

This article compares Nvidia and Navitas Semiconductor as AI chip stocks. Nvidia dominates the discrete GPU market, powering major AI companies with its chips and CUDA platform, and plans new Rubin and Ferryman architectures. Navitas produces advanced GaN and SiC power chips, and Nvidia will use them in its AI data centers starting in 2027. While Nvidia shows consistent growth, Navitas faces near-term revenue declines in 2025 and 2026 before an expected surge in 2027 tied to its Nvidia partnership.

SoundHound AI stock dips but shows strong growth potential

SoundHound AI, a company providing voice AI solutions for various industries, has seen its stock drop over 41% in the last three months. Despite this, the company holds over 400 patents in voice AI and partners with industry leaders like Nvidia and Qualcomm. Analysts expect SoundHound AI's revenue to increase by 37% to $230 million in 2026. The voice AI market is projected to grow 28% annually through 2029, suggesting a significant long-term opportunity for SoundHound AI.

Micron and Qualcomm are undervalued AI leaders for 2026

Micron Technology and Qualcomm are identified as potentially undervalued AI stocks that could lead the next bull market. Micron sees strong demand for its memory products, driven by a multi-year AI infrastructure buildout, with its HBM market expected to grow 100% in 2026. Qualcomm is set to benefit from the AI PC upgrade cycle, planning 150 Snapdragon-powered AI PC designs by 2026, and is expanding into AI data centers. Both companies are well-positioned for growth as the global AI market is projected to reach $3.5 trillion by 2033.

Nansen launches AI crypto trading for all users

On January 21, 2026, Nansen opened its AI-powered onchain trading product to all users, moving beyond just analytics. The platform offers trading on Solana and Base with fees starting at 0.25% for free users and 0.10% for Pro users. It includes a non-custodial embedded Nansen Wallet and routes trades through top DEX aggregators like Jupiter Exchange. Mobile users can use AI agents for conversational trading, which leverages Nansen's vast database of labeled on-chain wallet data to suggest trades.

AI threatens three software stocks Datadog Fastly Atlassian

On January 20, 2026, an analysis suggested investors consider selling three software stocks: Datadog, Fastly, and Atlassian, due to potential AI disruption. Datadog, a cloud observability platform, faces a high valuation despite strong revenue growth and AI partnerships. Fastly, an edge cloud platform, also has a high valuation, though its security revenue is growing. Atlassian, known for Jira and Confluence, is investing in AI features but also carries a premium valuation. The article suggests AI-native tools could challenge their business models, leading to a sideways or downward stock performance.

Microsoft CEO Nadella warns AI needs wider adoption

Microsoft stock slipped after CEO Satya Nadella warned that artificial intelligence could lose public support without wider adoption. Nadella believes AI is not a bubble if it moves beyond just tech partnerships and infrastructure to become commonly used by people. He suggested job seekers should master AI skills, similar to mastering Microsoft Excel. However, AI faces challenges like creative industry pushback, data center bans, and consumer frustration over high PC part prices, which could hinder its widespread acceptance.

Applied Digital names Jason Zhang President focuses on AI

Applied Digital appointed co-founder Jason Zhang as its new President, signaling a stronger focus on AI infrastructure. For the period ending November 30, 2025, the company reported $126.59 million in quarterly revenue and a reduced net loss of $19.08 million. This strategic shift builds on Applied Digital's existing large data center leases with major clients like CoreWeave. Investors should watch how the company capitalizes on the growing AI market and executes its AI infrastructure growth plans.

AI startup Baseten raises 300 million with Nvidia backing

On January 20, 2026, AI inference startup Baseten raised $300 million in a funding round, doubling its valuation to $5 billion. Nvidia reportedly backed this investment, though it declined to comment. This funding is Baseten's third in 12 months, following a $75 million Series D round that tripled its valuation to $2.15 billion six months earlier. CEO Tuhin Srivastava aims to help companies become AI-first by providing speed and enabling them to delegate non-core tasks.

Sources

• 2 Undervalued AI Stocks to Buy in 2026 and Hold for Decades
• 2 Undervalued AI Stocks to Buy in 2026 and Hold for Decades
• 2 Undervalued AI Stocks to Buy in 2026 and Hold for Decades
• TE Connectivity’s Earnings Show AI Trade Is Alive and Well
• TE Connectivity’s earnings show AI trade is alive and well
• 3 of My Top 4 AI Stock Picks for 2025 Rose At Least 38%. Are They Still Best Buys for 2026?
• Better AI Chip Stock: Nvidia vs. Navitas Semiconductor
• This AI Stock Is Down Big, but Its Story Is Just Beginning
• These AI Stocks Could Lead the Next Bull Market, and They Are Still Cheap
• Nansen Opens AI-Powered Onchain Trading to All Users With 0.25% Fees and Built-In Wallet
• 3 Software Stocks to Sell Before AI Replaces Them Entirely
• Microsoft Stock (MSFT) Slips as CEO Warns AI Could Lose ‘Social Permission’ Without Progress
• Should Leadership Shift Toward AI Infrastructure at Applied Digital (APLD) Require Action From Investors?
• AI Inference Startup Baseten Raises $300 Million and Gains Backing From Nvidia