Every decade, it seems, a new promise flickers on the horizon. A technology arrives, heralded as transformative, capable of reshaping the world. Companies, eager to catch the light, position themselves, hoping to benefit from the inevitable rush. One recalls the internet, a similar fever dream, and then the smartphones, clutched in every hand. Growth, of course, rarely follows a straight line. There are always shadows, disappointments, and the quiet realization that even the most brilliant inventions are, in the end, just tools.
This decade’s illusion, if one may be so bold, is generative artificial intelligence. The capabilities are undeniably impressive, a mimicry of thought that touches nearly every industry. But the market, like a fickle lover, is easily distracted. Three companies, at least for the moment, appear to be favored. Whether this affection will endure is, as always, uncertain.
Meta Platforms
Meta Platforms, once a simple network for connecting acquaintances, now aspires to something more. They speak of immersive experiences, of virtual worlds. It’s a grand vision, and one that requires considerable investment. Perhaps, more than any other, they seem determined to harness the power of generative AI, weaving it into the fabric of their advertising, their messaging, even their augmented reality endeavors. One wonders if the effort will justify the expense.
The most immediate benefit, predictably, lies in advertising. They are developing an AI agent, a tireless worker that can design and refine ad campaigns, optimizing budgets with cold efficiency. It’s a sensible move, though one suspects it will primarily benefit Meta itself, rather than the small businesses they claim to serve. The algorithms, of course, will continue to learn, to refine, to extract every possible advantage. A relentless process, and a rather impersonal one.
Ad revenue has indeed increased, a modest 21% through the first nine months of the year. But growth is rarely guaranteed. The company is pouring capital into data centers, a staggering $100 billion planned for 2026. A bold gamble, and one that will undoubtedly weigh on earnings. Still, the stock, trading at a forward P/E of 22, appears reasonably priced. Though, one should remember that “reasonable” is a subjective term, particularly in the realm of finance.
Salesforce
Salesforce, a purveyor of enterprise software, now seeks to infuse its offerings with the magic of generative AI. The hope, naturally, is to attract more users and extract more revenue from each one. But the true potential, they believe, lies in Agentforce, a platform for automating tasks with AI agents. A promising development, though one cannot help but wonder if it’s merely a repackaging of existing technologies.
Agentforce has seen some momentum, with annual recurring revenue climbing a substantial 330% year over year. A remarkable figure, to be sure, though it’s important to remember that it’s starting from a very small base. Combined with Data 360, the revenue is still a modest $1.4 billion. The company expects customers to increase their spending by 200% to 300% over the long run. A hopeful forecast, and one that depends on a great many things going right.
They project revenue of $60 billion by 2030, with an operating margin of 40%. Ambitious targets, and perhaps overly optimistic. Even if they fall short, they are likely to be directionally accurate. The stock, trading at 19 times forward earnings, appears to offer some value. Though, one should remember that the market rarely rewards prudence.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing, or TSMC, has become something of a kingmaker in the world of AI chips. They possess the technology and capacity to meet the demand for these complex components. A fortunate position, and one that has allowed them to see sales grow by 35.9% in the last year. Their market share now stands at 72%, a dominant position that is unlikely to be challenged anytime soon.
They are planning to spend between $52 billion and $56 billion on capital expenditures this year, a substantial increase from the previous year. A bold investment, and one that reflects their confidence in the future. They project five-year compound annual revenue growth of 25%. A reasonable expectation, though it depends on a continued surge in demand. The stock, trading at 23 times forward earnings, appears to offer some value. Though, one should remember that even the most solid companies are vulnerable to unforeseen circumstances.
The market, of course, will continue to fluctuate, driven by forces beyond anyone’s control. Companies will rise and fall, fortunes will be made and lost. The cycle will continue, relentlessly and predictably. One can only observe, with a mixture of amusement and resignation, as the drama unfolds. It is, after all, just a market. And life, as always, goes on.
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2026-01-28 14:04