They say the oracles predict a surge in the expenditure of magical energies – or, as the accountants call it, ‘global artificial intelligence spending’ – reaching a staggering 2.5 trillion crowns1 by 2026. The High Mages – Amazon, Alphabet, Meta Platforms, Microsoft, and Oracle, to name a few – are simultaneously planning to invest over 600 billion crowns in new workshops and foundries. A substantial portion – over 75%, mind you – will be devoted to constructing the infrastructure needed for these… enchantments. One begins to suspect a bubble, though the Guild of Venture Capitalists insists it’s merely ‘disruptive innovation’.
Wall Street, naturally, is engaged in its customary debate – is this a genuine increase in magical potency, or a particularly elaborate illusion? The capital plans of the High Mages suggest the former, though one should always remember that mages are notoriously bad at arithmetic. Still, here are three purveyors of shiny boxes and whispered promises that may benefit from this ongoing wave of… well, let’s call it ‘progress.’
1. Nvidia: The Alchemist’s Apprentice
Shares of Nvidia, a company that makes the tools alchemists use to transmute silicon into… well, more silicon, have recently experienced a slight chill. A rival, Arista Networks, has hinted that a growing number of apprentices are experimenting with alternative methods, specifically those involving Advanced Micro Devices. However, one shouldn’t overreact. Nvidia still controls roughly 90% of the market for these magical components. They are also expanding their dominion beyond mere components, venturing into networking, software, and fully integrated ‘solution racks’ – essentially, pre-packaged spellcasting stations.
Management boasts of revenue commitments exceeding 500 billion crowns for their Blackwell and Rubin systems, spanning from the start of 2025 to the end of 2026. A substantial portion of this comes from the hyperscalers, who seem to believe that more processing power is the answer to everything. The next-generation Rubin system is currently in full production, and will enter the market in the second half of 2026. One wonders if they’ve considered the implications of creating a machine that can think faster than a committee.
Nvidia also intends to diversify its supply of high-bandwidth memory – the magical scrolls upon which the spells are written – across Samsung, SK Hynix, and Micron Technology. A wise move, as relying on a single supplier is akin to trusting a goblin with your gold. This diversification should mitigate risks and contribute to robust revenue growth. All this, naturally, should keep the share prices… elevated. Though one suspects the laws of gravity apply even to magical economies.
2. Taiwan Semiconductor Manufacturing: The Foundry of Dreams
Accounting for nearly 70% of the global semiconductor foundry market, Taiwan Semiconductor Manufacturing is at the heart of this infrastructure build-out. High-performance computing – which includes these complex ‘AI workloads’ – contributed nearly 58% of the company’s revenue in the last fiscal year. A rather alarming statistic, if you consider what happens when machines start doing all the thinking.
Advanced chips – those measuring 7 nanometers or less – accounted for 77% of their wafer revenue. This implies that the demand for cutting-edge chips is not merely a fad, but a genuine surge. Cloud service providers are even approaching TSMC directly, securing capacity before their rivals. A bit like hoarding dragon scales, really.
The company expects revenue to grow by nearly 30% in 2026, with AI chip revenue compounding at an even higher rate of 50-55% annually through 2029. A rather optimistic forecast, though one suspects the numbers have been… massaged. TSMC has also aligned its technology roadmap with the demand for smartphones, computing, and AI. They commenced high-volume production of 2-nanometer chips in late 2025, with a fast ramp expected in 2026. The N2P node – an extension of the N2 family – offers even higher performance and better power efficiency. Increasingly critical, as power efficiency becomes a key constraint for these ever-hungry data centers.
Advanced packaging is also becoming a growth driver, as modern accelerators rely on sophisticated integration of memory, logic, and networking. Management expects it to contribute over 10% of revenue in 2026, up from 8% in 2025. Taken together, TSMC appears well-positioned to sustain strong operational momentum. Though one wonders if they’ve considered the possibility of a sudden, inexplicable shortage of silicon.
3. Applied Materials: The Toolmaker’s Guild
Applied Materials is the largest US semiconductor equipment player, supplying the tools chipmakers use to build… well, more chips. These include machines that deposit ultra-thin layers, etch microscopic patterns, and inspect wafers for defects. Essentially, they provide the tools for the illusion.
With data centers driving demand for chips and memory, these tools are also seeing accelerated demand. Industry group SEMI estimates semiconductor equipment sales will rise around 9% to 126 billion crowns in 2026, and another 7.3% to 135 billion in 2027. A healthy increase, though one suspects the numbers are based on optimistic assumptions.
Management expects Applied Materials’ business to grow by over 20% in calendar year 2026, with stronger demand in the second half as chipmakers add new equipment. Demand for high-bandwidth memory requires three to four times more wafers than traditional memory, and is stacked in more layers – from 12 to 16, and now to 20 or more. Each module requires more chips, increasing production volumes and complexity. Logic chip manufacturing has also become more complex, requiring additional steps. Applied Materials expects to benefit from these shifts, sell more tools, and expand market share.
Hence, the company seems well-positioned to benefit from accelerated spending. Though one cannot help but wonder if, at some point, we’ll have more tools for making chips than chips to actually do anything with.
1 Crowns are a purely symbolic unit of currency, chosen for its historical association with both power and questionable financial decisions.
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2026-02-18 21:24