Not Nvidia. Not AMD. This Chip Stock Will Be the Biggest Winner of the Historic AI Semiconductor Boom

7 hours ago 2

Harsh Chauhan, The Motley Fool

Sat, August 15, 2026 astatine 8:43 AM CDT 6 min read

The artificial quality (AI)-fueled semiconductor roar isn't showing immoderate signs of slowing, arsenic large hyperscalers and pure-play AI companies proceed to put aggressively successful infrastructure to conscionable the tremendous request for AI services and to fulfill their monolithic contractual backlogs.

Market probe steadfast Omdia estimates that the planetary semiconductor industry's gross could leap by an awesome 94% successful 2026. The steadfast notes that computing and information retention chips volition make conscionable nether $1 trillion successful gross this year. Importantly, semiconductor specializer Advanced Micro Devices (NASDAQ: AMD) predicts that the marketplace for high-performance and AI computing chips could scope $2 trillion by 2030.

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

This is large quality for semiconductor stocks specified arsenic AMD and Nvidia (NASDAQ: NVDA), which person been enjoying phenomenal maturation amid booming request for AI chips. However, I deliberation that determination is simply a amended mode to play the AI-driven semiconductor roar by investing successful a institution that plays an instrumental relation successful powering AMD and Nvidia's coagulated maturation -- Taiwan Semiconductor Manufacturing (NYSE: TSM).

Let's spot why.

Person wearing protective cogwheel and holding a chip.

TSMC is the astir important subordinate successful the AI spot ecosystem

AMD and Nvidia plan information halfway chips specified arsenic cardinal processing units (CPUs) and graphics processing units (GPUs). These are deployed successful AI information centers and borderline applications, specified arsenic idiosyncratic computers and vehicles. Both companies person been experiencing phenomenal maturation successful gross and earnings.

AMD precocious released its second-quarter results, posting a 50% year-over-year summation successful gross to $11.5 billion. Its non-GAAP net accrued astatine a overmuch stronger gait of 246% twelvemonth implicit twelvemonth to $1.66 per share. AMD attributed its awesome show to robust request for its server CPUs and GPUs, resulting successful a 107% year-over-year summation successful information halfway gross successful Q2.

The bully quality for AMD banal investors is that its coagulated maturation trajectory is present to stay. The institution anticipates a 41% year-over-year gross summation successful the existent quarter. However, it could transcend that estimation owed to the motorboat of its Helios rack-scale server level and the instauration of newer, faster AI compute chips.

Nvidia, meanwhile, is poised to merchandise its fiscal 2027 second-quarter results aboriginal this month. It expects $91 cardinal successful gross for fiscal Q2, pointing to a year-over-year summation of 95%. Nvidia tin prolong specified terrific maturation implicit the agelong run, fixed its ascendant presumption successful the AI spot ecosystem.

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