Best Tech Stocks to Buy as AI Infrastructure Boom Accelerates

The artificial intelligence revolution is reshaping technology investments, and semiconductor manufacturers are emerging at the forefront of this transformation. Taiwan Semiconductor Manufacturing (TSMC) has positioned itself as a critical player in the AI chip supply chain, making it one of the most compelling tech stocks to buy for growth-oriented investors.

Understanding the AI Chip Demand Explosion

TSMC serves as the primary chip manufacturer for major technology companies including Nvidia, Advanced Micro Devices, Broadcom, Tesla, and Apple. The company doesn’t just produce chips—it manufactures the foundation upon which modern AI infrastructure is built. In Q3 2025, TSMC delivered remarkable financial performance with 41% year-over-year revenue growth and maintained an impressive 46% profit margin. The company subsequently raised its full-year 2025 revenue growth guidance to the mid-30% range, up from previous expectations of approximately 30%.

The scale of opportunity becomes clear when examining industry projections. Research firm Gartner forecasts that AI chip sales could exceed $476 billion in 2025, up substantially from $279 billion in 2024. This explosive growth reflects the massive computational demands of AI systems and the continuous deployment of data centers worldwide.

Next-Generation Chip Technology Drives Growth

TSMC is transitioning to 2nm chip production this quarter, representing a significant technological leap from the current 3nm standard. This advancement matters because 2nm chips consume 25% to 30% less power than their 3nm predecessors while delivering equivalent performance. For data center operators managing thousands of servers, energy efficiency translates directly into operational cost savings—making this technological progression a powerful catalyst for equipment upgrades.

The move to advanced node technology typically drives a replacement cycle across the industry. Companies designing next-generation AI hardware will likely specify the new 2nm chips for their superior energy profiles and computing capabilities. This creates a favorable environment for tech stocks to buy, as both chipmakers and the companies relying on their products position themselves for expansion.

TSMC currently trades at 23 times forward 2026 earnings, with Wall Street analysts projecting 20% revenue growth for the coming year. This valuation reflects investor confidence in sustained demand growth and the company’s technological leadership.

Data Center Infrastructure Drives Semiconductor Demand

The infrastructure supporting artificial intelligence requires massive capital deployment. McKinsey estimates that $5.2 trillion will be invested in AI data centers through 2030, with approximately $3 trillion directed toward semiconductors and computing hardware. This represents an unprecedented level of capital concentration in a single technology domain.

Applied Digital, a company operating in the AI data center sector, exemplifies the investment opportunity in supporting infrastructure. The company reported 84% year-over-year revenue growth to $64.2 million in its most recent quarter. More significantly, Applied Digital has secured $11 billion in contracted lease revenue for its North Dakota data center campus, with contracts spanning 15 years. This contracted revenue stream provides visibility into long-term growth and financial stability—characteristics that attract institutional investors to such technology stocks to buy.

Goldman Sachs projects data center demand could expand 50% by 2027, reaching 92 gigawatts of capacity. Applied Digital is developing a pipeline of 4 gigawatts specifically for AI workloads, positioning the company to capture meaningful market share in this explosive growth period.

Stock Performance and Investment Appeal

TSMC’s stock has surged dramatically, climbing from a 52-week low of $134.25 to recent trading near $301, reflecting investor recognition of the company’s strategic importance. The company maintains a robust 58% gross margin, providing financial flexibility for research investments and shareholder returns. These metrics underscore why semiconductor leaders have become essential holdings for technology-focused portfolios.

The convergence of technological advancement, massive infrastructure investment, and supply chain concentration makes this an opportune moment for investors evaluating which tech stocks to buy. Companies directly enabling the AI infrastructure build-out—from chip manufacturers to data center operators—stand positioned to benefit substantially from the ongoing digital transformation.