The rapid expansion of artificial intelligence (AI) capabilities is transforming industries and driving record levels of investment in infrastructure worldwide. As enterprises and governments escalate their adoption of AI-driven systems, the infrastructure that powers these innovations—from data centers to advanced chips—has become the focus of both attention and aggressive capital allocation. Recent statements by Nvidia CEO Jensen Huang suggest that worldwide AI infrastructure spending could soar to a staggering $4 trillion by the end of the 2020s. This projection, considered bold yet credible, underscores the magnitude of the opportunity for technology and semiconductor investors.

AI Infrastructure Boom: The $4 Trillion Horizon

In recent years, companies such as Meta Platforms and Alphabet (Google’s parent) have significantly ramped up capital expenditures on data centers, server hardware, and next-generation AI accelerators. According to IDC, AI global spending already topped $166 billion in 2023 and continues to rise at over 26% CAGR. The intersection of generative AI, cloud computing, and edge applications is amplifying the need for robust, scalable AI infrastructure. As companies race to develop and deploy foundational large language models and complex neural networks, the core building blocks—compute resources and specialized chips—have become vital commodities.

This dynamic has fueled exceptional growth among hardware and infrastructure enablers. While Nvidia often dominates news cycles with its market-leading AI chips, savvy investors should consider other high-potential companies positioned to capture long-term share in the surging AI ecosystem.

1. Nebius Group: Rapid Growth and Cloud-Powered AI

Nebius Group (NASDAQ: NBIS) stands out as a dynamic AI infrastructure provider with a cloud-first strategy. The company offers clients on-demand access to high-powered GPUs, essential for AI model training and inferencing. Instead of investing tens of millions in proprietary AI server farms or grappling with hardware shortages—as many enterprises have in recent quarters—customers can rent Nebius’ compute capacity in the cloud, dramatically accelerating their AI development lifecycle while optimizing costs.

Recent financial results underscore Nebius’ explosive trajectory. In its latest quarterly report, the company posted a remarkable 625% year-over-year revenue increase to approximately $105 million. Even more notable was Nebius’ positive adjusted EBITDA from its AI cloud division, signaling early operational scalability in a fiercely competitive sector.

To further bolster its infrastructure, Nebius has committed to rapidly ramping capacity. The company aims to add 1 gigawatt of power to its data center network by the end of next year—comparable to powering 100 million LED bulbs. This aggressive expansion is designed to meet surging enterprise and research demand for AI compute, particularly as model sizes increase and the industry braces for ever-greater volumes of data.

Beyond mere compute, Nebius offers a full-service cloud AI experience. Managed offerings such as MLflow for machine learning lifecycle management enable clients to build, test, and deploy AI models at scale with paperless integration. In a market where operational flexibility and rapid deployment are paramount, Nebius’ platform approach could offer a distinct advantage over more specialized, hardware-constrained competition.

Despite a 300% stock surge in 2025, Nebius may still be undervalued relative to its growth potential as the sector transitions from niche deployments toward mass adoption. Importantly, the company is also forging partnerships with leading AI software vendors and open-source consortia, broadening its ecosystem footprint and long-term revenue prospects.

2. Taiwan Semiconductor Manufacturing Company (TSMC): The Foundry Powerhouse Behind the AI Revolution

Taiwan Semiconductor Manufacturing Company (NYSE: TSM) is another strategic AI play often overlooked by investors focused solely on chip designers like Nvidia. As the world’s largest and most advanced pure-play semiconductor foundry, TSMC manufactures not just Nvidia chips, but also those for AMD, Broadcom, Apple, and many others. In practice, this means TSMC stands to benefit directly from any surge in AI chip demand, regardless of which company emerges as the ultimate design leader.

In 2025, TSMC reported a 38% year-over-year revenue increase, propelled by demand from AI, 5G, and high-performance computing sectors.

Strategically, TSMC is rapidly expanding its global manufacturing footprint, particularly in the United States—the world’s largest market for AI adoption. The company recently raised its U.S. investment commitment to $165 billion, funding three state-of-the-art fabrication facilities (fabs), advanced research centers, and cutting-edge packaging plants. This not only enhances TSMC’s ability to serve American technology giants but also helps mitigate geopolitical risks and potential tariff pressures related to U.S.-China trade tensions.

TSMC is pioneering next-generation transistor designs, including its 2-nanometer process technologies—a critical edge as AI models become exponentially more complex and resource-intensive. These breakthroughs help TSMC retain leadership in performance and energy efficiency, both vital for data center scale AI operations and for clients like Apple and Nvidia in consumer electronics and autonomous vehicles.

At a time when semiconductor supply chains remain stretched and major cloud service providers plan multibillion-dollar annual capex budgets well into 2028, TSMC offers a diversified revenue base and proven execution. Currently trading at 29 times forward earnings, TSMC appears reasonably valued given its growth profile and unique, cross-industry exposure to secular AI trends.

Investment Considerations: Beyond the Usual AI Headlines

While high-profile AI and chip stocks like Nvidia remain core holdings for many investors, the infrastructure buildout underway presents underappreciated opportunities in companies such as Nebius Group and TSMC. These companies are not only delivering the tools and capacity necessary for AI’s next wave, they are positioned to capture long-term returns from diverse customer bases and new geographies as generative AI and advanced analytics scale across sectors.

As AI spending sprints towards the $4 trillion milestone, prudent investors should look past immediate hype cycles and identify firms with robust business models, compelling earnings growth, and clear strategic roadmaps for capacity expansion. In this context, both Nebius Group and TSMC check several critical boxes—offering participation in the infrastructure that will underpin the global AI revolution.

Given their current trajectories and the market’s insatiable appetite for AI-driven productivity gains, these two stocks merit close consideration as part of a balanced, forward-looking technology portfolio.