That’s right, $190 billion of mostly AI spending in just one year.<\/p>\n
And next year will be even higher, with Alphabet’s management saying spending will “significantly increase compared to 2026.”<\/p>\n
That’s very good news for semiconductor stocks, especially these three.<\/p>\n
![\"A](\"https:\/\/www.europesays.com\/ai\/wp-content\/uploads\/2026\/05\/790cde6300ca61744263c63f2a0bcd3d.jpeg\")
Image source: Getty Images. 1. Broadcom could be the biggest winner <\/p>\n
Broadcom (NASDAQ: AVGO) designs custom processors for its clients, which include Alphabet. The company’s Google Tensor Processing Units (TPUs) are used in AI data centers and the Broadcom-designed chips are increasingly in demand. Just a few weeks ago, Broadcom scored a deal<\/a> that will extend through 2031 to increase its chip designs for Alphabet.<\/p>\n That was a huge win for Broadcom<\/a>, and with Alphabet saying that it could increase spending even more next year, Broadcom will likely benefit even further. Even before the announced increase in spending, Broadcom said that its AI revenue will reach $100 billion by 2027 — up from just $15 billion in fiscal 2025.<\/p>\n Much of the company’s AI revenue could come from Alphabet in the coming years, but I don’t believe the company is overexposed to just one customer. Broadcom is expected to hold approximately 60% of the application-specific integrated circuit (ASIC) market by 2027.<\/p>\n Its other customers, including Meta, are ramping up AI spending too, giving Broadcom multiple angles to benefit from the surge.<\/p>\n 2. Taiwan Semiconductor benefits whenever chip demand spikes <\/p>\n Taiwan Semiconductors (NYSE: TSM) is the world’s leading semiconductor manufacturer, accounting for an estimated 70% of all processors.<\/p>\n Its position looks even better when viewed in the context of advanced processors, specifically AI chips. In that area, Taiwan Semiconductor, also referred to as TSMC, holds about 90% of the market.<\/p>\n The combined capital spending for Microsoft, Amazon, Alphabet, and Meta this year is nearing about $700 billion. With much of that going toward AI infrastructure, including making processors, TSMC will likely see ongoing demand for years to come.<\/p>\n Story Continues <\/p>\n Some investors may worry that manufacturing capacity is an issue for TSMC right now, but the company is building new factories to help alleviate bottlenecks. The bigger picture is that TSMC’s management expects sales to increase more than 30% this year.<\/p>\n With Alphabet and other tech giants still banging on the doors demanding more processors, TSMC’s growth isn’t slowing down anytime soon.<\/p>\n 3. Don’t forget about Nvidia <\/p>\n Nearly any ramp-up in AI infrastructure spending is almost certainly good for Nvidia (NASDAQ: NVDA). The company’s GPUs are the leading processors in AI data centers, and it’s not likely to lose that lead.<\/p>\n While Google uses its own TPUs for some of its AI processing capacity, they don’t fully replace Nvidia’s processors. Alphabet will still need to purchase Nvidia GPUs to meet compute demand, which management says is “constrained” right now.<\/p>\n I believe one of the main benefits of Alphabet’s ramp up in spending for Nvidia is that it could spur more AI investments by Alphabet’s rivals. And that, in turn, could lead to greater demand for Nvidia’s processors.<\/p>\n For example, Meta raised its capex estimate recently, too, and will now spend up to $145 billion this year. Other tech giants continue to invest piles of cash, partly out of fear of falling behind.<\/p>\n With about 86% market share for AI data center revenue, Nvidia is an important winner as tech companies duke it out in the AI arena.<\/p>\n There’s no telling when AI infrastructure spending will slow down, but with Alphabet and other tech giants continuously increasing their investments, investors should be cautious about calling the end of the AI spending boom too early.<\/p>\n Should you buy stock in Broadcom right now? <\/p>\n Before you buy stock in Broadcom, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Broadcom wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $496,473!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,216,605!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 968% \u2014 a market-crushing outperformance compared to 202% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of May 3, 2026. <\/p>\n Chris Neiger<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Broadcom, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy<\/a>.<\/p>\n