Microsoft plans $500 billion AI spend as Google expands TPUs

Key Takeaways

• Microsoft and Amazon are projected to spend $500 billion on AI infrastructure in 2026, contributing to an overall AI infrastructure spending forecast of $1.4 trillion by 2026 (Gartner) and $1.4 trillion by 2030 (Ark Invest).
• Broadcom is a major beneficiary, designing custom AI chips (ASIC) for companies like Alphabet and Apple, and analysts predict its AI revenue could reach $100 billion by fiscal 2027.
• Taiwan Semiconductor Manufacturing (TSMC) is a key chip maker for Nvidia and AMD, with its advanced 2-nanometer chips in high demand and driving earnings growth.
• Alphabet's Tensor Processing Units (TPUs) are gaining traction, securing a deal with AI company Anthropic and reportedly being considered by Meta Platforms.
• Corning is a vital supplier for AI data centers, expanding optical cable manufacturing for Meta Platforms and reporting strong Q4 fiscal 2025 earnings with a 24% increase in its Optical Communications segment revenue.
• Micron, a key Apple supplier, benefits from high demand for high-bandwidth memory chips due to AI applications and record iPhone sales, with analysts forecasting its revenue to double this year.
• Meta Platforms' stock rose after its fourth-quarter earnings, indicating investor optimism about its increased AI investments.
• Prologis is expanding into data center construction, targeting a global market projected to exceed $900 billion by 2033.
• AI and robotics investments extend beyond big tech, with healthcare robotics installations increasing by 91% in 2024.
• TD SYNNEX, in partnership with Iterate.ai and HPE, launched "Generate for Healthcare," an AI-powered tool utilizing HPE and NVIDIA infrastructure to help hospitals recover unpaid insurance claims.

Two AI Stocks to Watch in 2026

FactSet Research predicts that major tech companies like Microsoft and Amazon will spend $500 billion on AI infrastructure in 2026. This spending will boost companies like Broadcom and Taiwan Semiconductor Manufacturing. Broadcom provides essential digital plumbing for data centers and helps design custom AI chips for companies such as Alphabet and Apple. Taiwan Semiconductor Manufacturing, also known as TSMC, manufactures chips for many top companies including Nvidia and AMD. Both companies are well-positioned to benefit from the growing demand for AI infrastructure and custom chips.

Ark Invest Sees Broadcom as a Top AI Stock

Cathie Wood from Ark Invest believes AI infrastructure spending will reach $1.4 trillion by 2030. Broadcom is a leading company expected to benefit greatly from this growth. It helps major tech companies, called hyperscalers, design their own custom AI chips using its ASIC technology. Broadcom worked with Alphabet on its Tensor Processing Units and has a large $21 billion order for TPUs. Analysts predict Broadcom's AI revenue could jump from $20 billion to $100 billion by fiscal 2027, making it a strong AI stock to consider.

Two AI Stocks Poised for Big Wins in 2026

Gartner predicts that AI infrastructure spending will increase to $1.4 trillion in 2026. Taiwan Semiconductor Manufacturing, known as TSMC, is a top chip maker for companies like Nvidia and AMD. Its advanced 2-nanometer chips are in high demand and priced higher, which should boost its earnings. Alphabet is also set to win big with its Tensor Processing Units, or TPUs. Google made a deal with AI company Anthropic to use its TPUs, and Meta Platforms is reportedly considering them too. These deals could significantly increase Alphabet's revenue in the coming year.

Corning Stock Soars 100 Percent on AI Demand

Corning, a company with 175 years of history in materials science, has become a vital supplier for AI data centers. Its stock, GLW, recently surged after announcing a deal with Meta Platforms to expand its optical cable manufacturing in North Carolina. Corning reported strong fiscal 2025 fourth-quarter earnings, with revenue up 15% to $4.8 billion and adjusted earnings per share up 26% to $0.72. The Optical Communications segment, which provides infrastructure for AI, saw its revenue increase by 24%. Corning also raised its long-term sales goals, showing confidence in continued AI-driven growth.

Apple's Success Boosts Micron AI Stock

Apple reported a strong quarter with record iPhone sales, but its CEO Tim Cook warned of significantly rising memory chip prices. This news is great for Micron, a major U.S. memory chip producer and key Apple supplier. Micron benefits from the high demand for high-bandwidth memory chips used in AI applications and data centers. The strong iPhone sales are expected to worsen the memory shortage, driving prices even higher through the summer. Analysts predict Micron's revenue will double this year, with AI demand continuing to boost the company through 2028.

SwingMax Tool Helps Traders Find Stock Reversals

SwingMax is a tool that helps traders identify stock trend reversals and protect their profits. It focuses on entering trades after a clear trend shift and exiting before risks become too high. For example, on November 26, SwingMax gave a buy signal for Bitmine Immersion Technologies Inc. at $32.20. The system uses staged profit taking, allowing traders to lock in gains at different price points, such as $36.32 and $39.40. SwingMax also alerts traders to rising risks, prompting them to exit positions, like the final exit for BMNR.A around $39.39 before the stock dropped.

Meta Stock Rises as AI Investments Show Results

Meta Platforms announced a significant increase in its planned spending on artificial intelligence. Despite these high costs, Meta's stock price rose sharply after the company released its fourth-quarter earnings on Wednesday. This positive reaction from investors differs from the stock's drop after its October earnings report. Wall Street now appears more optimistic that Meta is achieving good results from its growing AI investments.

Prologis Offers AI Growth at a Good Price

Prologis, a company known for its logistics properties, provides a way to invest in AI at a fair price. While it serves major tenants like Amazon and FedEx with distribution centers, Prologis is also building data centers. The global data center market is expected to grow significantly, reaching over $900 billion by 2033. Prologis is in a strong position to take advantage of this growth due to its solid financial health. The company offers a 3.1% dividend yield and trades at a reasonable valuation, making it an appealing AI stock.

AI Robotics Investments Go Beyond Big Tech

Investment opportunities in AI and robotics are much broader than just big technology companies. Experts at VettaFi's Exchange conference discussed how these opportunities extend to many different enablers and application developers. Healthcare robotics is a rapidly growing area, with medical robot installations increasing by 91% in 2024 to improve patient care. The robotics industry also includes companies that make essential components like robotic hands and battery technologies. Investors can access these diverse opportunities through specialized ETFs that cover the entire global AI and robotics market.

TD SYNNEX Launches AI Tool for Healthcare Claims

TD SYNNEX, working with Iterate.ai and HPE, launched a new AI-powered tool called "Generate for Healthcare." This solution helps hospital systems recover unpaid and underpaid insurance claims by automating tasks like creating Letters of Medical Necessity. The tool uses HPE and NVIDIA infrastructure and is sold through TD SYNNEX's wide distribution network. This new offering highlights TD SYNNEX's strategy to provide advanced AI solutions for specific industries, such as healthcare. While important, this tool is part of the company's larger effort to shift towards higher-value technology services.

Sources

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• TD SYNNEX (SNX) Is Up 6.2% After Launching AI Claims Tool With Iterate.ai And HPE