AI Stocks: A Portfolio Manager’s Confession

Right. So, everyone’s saying AI is the next big thing. Which is…slightly terrifying, isn’t it? Like, what if the robots do take over? Still, can’t ignore the potential, can you? It’s just…a lot of money sloshing around. I keep telling myself it’s a generational opportunity, but then I check the market at 3 AM and wonder if I’ve made a terrible mistake. Units of Sleep Lost: 7. Number of Times I’ve Considered Becoming a Beekeeper: 3.

The thing is, while everyone’s obsessing over the shiny new generative AI (which, let’s be honest, mostly produces slightly unsettling images of cats), there are actual companies making money from this. Real, solid, hardware providers. And I’ve been looking at four in particular. Nvidia (NVDA +0.74%), Broadcom (AVGO 1.10%), Advanced Micro Devices (AMD +1.52%), and Taiwan Semiconductor Manufacturing (TSM +0.32%). I’m seriously considering ‘loading up,’ as they say. It feels…bold. And slightly reckless. But that’s investing, isn’t it? A constant negotiation between hope and despair.

The GPU Arms Race (and My Rising Blood Pressure)

Nvidia, naturally, is leading the charge. It’s been like this since 2023, when everyone suddenly decided AI was important. Their GPUs are everywhere. They’re apparently sold out of cloud GPUs, which is…a good sign, I suppose. Though it also makes me anxious. It’s like trying to find a decent avocado. Impossible. Nvidia’s management is predicting data center capital expenditures will hit $3 to $4 trillion by 2030. Trillion. It’s a number that makes my head spin. I keep picturing piles and piles of money. And then I remember taxes.

AMD is trying to catch up, which is admirable. But their ecosystem…well, it’s not quite as polished as Nvidia’s. It’s like the difference between a perfectly curated Instagram feed and…my kitchen. Still, there’s potential. If Nvidia can’t keep up with demand, people might turn to AMD. And if AMD can prove its technology is almost as good…well, that could be a game-changer. They’re projecting a 60% compound annual growth rate through 2030. Which sounds…optimistic. But hey, a girl can dream.

Broadcom is doing something completely different. They’re focusing on ASICs – application-specific integrated circuits. Apparently, GPUs are a bit of an overkill for some tasks. It’s like using a sledgehammer to crack a walnut. ASICs are more efficient, cheaper, and they’re partnering directly with AI hyperscalers. Which sounds…complicated. But also potentially lucrative. They expect AI semiconductor revenue to double year over year. Double! It’s enough to make me want to take up yoga. Or possibly hide under the duvet.

The thing is, none of these companies actually make the chips themselves. Which is…slightly unsettling. It’s like ordering a bespoke suit and discovering it was made in a sweatshop. Which brings us to…

Taiwan Semiconductor: The Quiet Power Behind the Throne

Taiwan Semiconductor (TSMC) is the company that actually manufactures the chips for everyone else. They’re the world’s largest chip foundry. They’re basically the engine room of the entire AI revolution. And they’re making a lot of money doing it. They’re projecting a mid- to high-50% CAGR between 2024 and 2029. Which is…unheard of. It’s like discovering a unicorn. Or a decent parking space in central London.

So, yeah. Nvidia, AMD, Broadcom, and Taiwan Semiconductor. That’s my current thinking. I’m still slightly terrified. But also…slightly excited. I’m telling myself it’s a rational investment decision. But deep down, I suspect it’s just another form of procrastination. A way to avoid dealing with the messy realities of life. Number of Times I’ve Checked My Portfolio Today: 17. Number of Times I’ve Considered Early Retirement: 4. Number of Cups of Tea Consumed: 6. It’s a work in progress.

2026-01-23 02:33

The GPU Arms Race (and My Rising Blood Pressure)

Taiwan Semiconductor: The Quiet Power Behind the Throne

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