Nvidia supplier sees $542.6 billion profit as Anthropic uses AI

Key Takeaways

• TSMC, a crucial supplier for Nvidia, anticipates record profits, with analysts predicting a net profit of T$542.6 billion for January-March and NT$220.6 billion on NT$590.6 billion revenue for Q1 2026, driven by AI chip demand.
• TSMC is investing $165 billion in new chip factories, including in Arizona, to meet the escalating demand for AI chips.
• Global chip sales are projected to exceed $1 trillion in 2026, primarily fueled by accelerating demand for artificial intelligence.
• ASML Holding N.V., a vital provider of chip manufacturing technology, is a significant player among AI stocks, with Susquehanna raising its price target to EUR 1,450.
• Taiwanese thermal management suppliers are experiencing rapid growth in 2026 due to the increasing adoption of liquid cooling systems for AI servers, while Aurotek achieved record revenues in Q1 2026 with AI-powered robotics.
• Israeli fund 10D focuses on early-stage investments in companies combining hardware with AI, covering areas like robotics and quantum computing.
• UK companies are making long-term strategic investments in AI, prioritizing productivity gains and better decision-making over immediate profits, despite challenges in measuring ROI.
• Cisco Systems is reportedly in talks to acquire Astrix Security for $250 million to $350 million to enhance its AI security capabilities, particularly for managing non-human identities like AI agents.
• Praxent, an AI consulting firm for fintech, secured investment from Delta-v Capital to accelerate AI adoption, utilizing Anthropic models for regulated environments.
• An AI system developed by Sakana AI, Oxford, and UBC successfully passed scientific peer review, demonstrating AI's advanced capabilities in research.

TSMC expects record profits driven by massive AI chip demand

TSMC, the world's largest maker of advanced AI chips, is likely to achieve its fourth consecutive quarter of record earnings. This is due to a significant increase in demand for AI infrastructure. Analysts predict a net profit of T$542.6 billion for January-March, a 50% rise from the previous year. The company's strong performance is attributed to the high demand for its 3-nanometre technology and advanced packaging for AI chips. TSMC is also investing heavily in new chip factories, including $165 billion in Arizona.

AI chip demand fuels record profits for TSMC

Taiwan Semiconductor Manufacturing Co (TSMC) is set for its fourth straight quarter of record profits, with net profit expected to jump 50% year-on-year in the first quarter of 2026. This surge is driven by the huge demand for AI chips, where TSMC is a key supplier, especially for Nvidia. Analysts forecast a net profit of NT$220.6 billion on revenue of NT$590.6 billion. The company's advanced packaging technology is also highly sought after, contributing to its strong market position in the growing AI sector.

Israeli fund 10D focuses on AI hardware and deep tech

Israeli early-stage investment fund 10D is concentrating on companies that combine hardware with artificial intelligence, a field many investors still avoid. The fund, which backed Mentee Robotics, believes the next big technological advancements will come from this intersection of deep engineering and AI. Founded in 2019, 10D invests in Israeli entrepreneurs from pre-seed to Series A, covering areas like robotics, quantum computing, and cybersecurity. The fund's partners have a strong track record in the Israeli tech scene, having been involved in successful companies like Waze, Onavo, and CloudEndure.

Taiwanese suppliers benefit from AI server growth and liquid cooling

Taiwan's thermal management suppliers are experiencing rapid growth within the AI hardware sector in 2026. This expansion is fueled by the increasing adoption of liquid cooling systems for AI servers. While their revenue is smaller than major semiconductor companies like TSMC, these suppliers are entering a significant growth phase. The trend highlights the evolving needs of AI infrastructure and the opportunities it creates for specialized hardware providers.

Aurotek achieves record revenue with AI-powered robotics

Aurotek reported its highest revenues in March and the first quarter of 2026. This achievement was driven by strong market demand for its robotics products that feature integrated artificial intelligence (AI) software. The company's success highlights the growing market for advanced robotics solutions enhanced by AI capabilities. This performance indicates a positive trend for Aurotek in the competitive AI and robotics sectors.

UK firms invest heavily in AI despite unclear returns

UK companies are increasingly viewing AI as a long-term strategic investment for transformation, rather than focusing solely on immediate profits. While profitability has become less of a priority, metrics like productivity gains and better decision-making are highly valued. Measuring the return on investment for AI remains challenging, with many firms struggling to quantify indirect benefits. Despite this, a majority of companies plan to continue investing in AI, seeing it as essential like cloud technology, with a strong focus on AI agents.

Global chip sales to surpass $1 trillion in 2026 due to AI

Global chip sales are projected to exceed $1 trillion in 2026, driven by the accelerating demand for artificial intelligence (AI). Taiwan's semiconductor supply chain experienced stronger-than-expected results in the first quarter of 2026. This growth is attributed to AI demand, which is speeding up the adoption of advanced chip manufacturing processes and packaging techniques. The trend indicates a significant expansion in the semiconductor market, largely powered by AI applications.

Cisco reportedly eyes Astrix Security for AI security control

Cisco Systems is reportedly in talks to acquire Astrix Security, a startup focused on managing non-human identities like AI agents, for $250 million to $350 million. This move would enhance Cisco's AI security capabilities by providing visibility into how bots, API keys, and AI agents interact within enterprise systems. Astrix's platform discovers and inventories these non-human identities, addressing a critical gap in managing machine credentials. Such an acquisition would strengthen Cisco's Security Cloud by offering better control over AI agent access.

ASML Holding: A top AI stock pick for investors?

ASML Holding N.V. is highlighted as a significant player among high-flying AI stocks. Susquehanna recently raised its price target for ASML to EUR 1,450, showing increased confidence ahead of the first-quarter earnings season. The firm is also raising estimates for the broader semiconductor equipment sector. ASML's role in providing essential technology for chip manufacturing makes it a key company in the booming AI market.

AI system passes peer review, challenging scientific norms

An AI system developed by Sakana AI, in collaboration with Oxford and the University of British Columbia, has successfully navigated the scientific peer-review process. The AI Scientist can generate ideas, conduct experiments, analyze results, and write research papers. One of its manuscripts scored above the median of human submissions at a conference workshop. Researchers withdrew the submissions to avoid setting a precedent, but the achievement demonstrates AI's growing capability in scientific research and raises questions about the future of the scientific community.

Praxent secures Delta-v Capital investment for AI in fintech

Praxent, an AI consulting and engineering firm focused on financial technology, has received a strategic growth investment from Delta-v Capital. This funding will accelerate Praxent's mission to help financial services firms and fintech companies adopt AI. Praxent combines deep financial expertise with AI engineering, using Anthropic models for regulated environments. Their framework helps clients modernize legacy systems, deploy AI for automation, and drive continuous innovation, positioning them as a leader in AI for fintech.

Sources

• TSMC likely to book fourth straight quarter of record profit on insatiable AI demand
• TSMC likely to book fourth straight quarter of record profit on insatiable AI demand
• Israel's 10D bets on physical AI and deep tech as its next frontier
• AI server tracker: Taiwanese thermal solution providers entering structural AI growth phase as liquid cooling adoption accelerates
• Aurotek posts record 1Q26 revenue on AI software, robotics integration
• 'That shouldn’t translate into investing in AI blindly, without a clear strategy': Experts warn UK firms want to keep spending big on AI - even if they can't prove it makes a difference
• Global chip sales expect to top US$1 trillion in 2026 on AI demand
• Cisco’s reported Astrix bid highlights why identity is becoming the control layer for AI security
• Is ASML Holding (ASML) the Best High-Flying AI Stock to Buy?
• An AI System Passed Peer Review. The Scientific Community Isn’t Ready
• Praxent Announces Strategic Investment from Delta-v Capital to Drive Next Era of AI Growth in Financial Technology