The prevailing currents of the market, as any attentive observer will note, are still largely dictated by the spectral hand of artificial intelligence. Eight of the most substantial holdings now bear its mark – a concentration of power that invites scrutiny. These entities are not merely adapting; they are undergoing a fundamental reshaping, driven by the relentless logic of the algorithm. Opportunities, undoubtedly, remain. But one must approach with a clear gaze, unblinded by the prevailing euphoria.
Two holdings, in particular, warrant consideration, not as mere vehicles for speculative gain, but as points of observation within this unfolding phenomenon: Alphabet and Taiwan Semiconductor Manufacturing. Their stories, though distinct, reveal much about the nature of this new order.
Alphabet: The Cartographer of Attention
Alphabet, the parent of the ubiquitous Google, is more than a search engine; it is a cartographer of attention, charting the desires and anxieties of billions. It holds near-monopolistic sway over domains essential to modern life – search, mobile operating systems, video sharing. This dominance, while impressive, is not without its implications. It is a concentration of influence that demands careful consideration.
The company has, predictably, sought to incorporate artificial intelligence into its core offerings. The initial anxieties – that independent language models might usurp Google’s position – proved, at least for the moment, unfounded. Instead, Google has absorbed the threat, integrating summaries generated by its own “Gemini” models directly into search results. A shrewd maneuver, though one that raises questions about the future of information access. The current reported 75 million daily users of this AI mode, and 650 million monthly active users, are not merely statistics; they are data points in a larger experiment – one whose ultimate outcome remains uncertain.
Recent financial reports indicate an acceleration of revenue growth – 16% in the third quarter of 2025 – with artificial intelligence cited as a key driver. The announced increase in capital expenditure – a projected $92 billion in 2026 – is not merely an investment in technology; it is a fortification of its existing power. Furthermore, the development of “Tensor Processing Units” (TPUs) – specialized semiconductors – is a strategic move towards self-sufficiency, a desire to control the very foundations of its operations. The cloud division, with a backlog of $155 billion, and a 46% year-over-year increase, is a testament to its expanding reach. Advertising revenue, up 15%, continues to fuel the machine. But one should not mistake growth for virtue.
Taiwan Semiconductor: The Fabricator of Dreams
Taiwan Semiconductor Manufacturing (TSMC) occupies a different, yet equally crucial, position. It is the fabricator of the dreams of others, the manufacturer of the chips that power the artificial intelligence revolution. Its partnerships with companies like Nvidia and Alphabet are not merely commercial arrangements; they are symbiotic relationships, each dependent on the other. The company’s recent performance is inextricably linked to the surge in demand for artificial intelligence hardware. High-Performance Computing (HPC) revenue, encompassing AI, accounted for 58% of total revenue in 2025, a 48% increase over the previous year. Total revenue rose by 26%, and management projects a compound annual growth rate of at least 25% through 2029. A formidable trajectory, but one built on a foundation of increasing complexity and geopolitical risk.
Like its clients, TSMC is investing heavily in expanding its production capacity. Management notes that such expansions historically precede periods of increased opportunity. But one must ask: at what cost? The opening of facilities in the United States – including a planned 12 plants in Arizona – is a strategic move to mitigate tariffs and bring production closer to key clients. But it is also a recognition of the growing tensions in the global order. The company’s dependence on a single geographic location – Taiwan – is a vulnerability that cannot be ignored.
TSMC, therefore, represents a compelling investment for 2026, not because it is immune to the vagaries of the market, but because its technology is essential to so many industries. It is a company that is less prone to fleeting fads and more likely to benefit from long-term trends. But it is also a company that operates within a complex and increasingly precarious system. The careful investor will recognize both the opportunities and the risks.
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2026-01-25 22:02