\nMeta Platforms\u00a0is planning to spend anywhere from $162 billion to $169 billion, up over 37% from 2025’s number.
\nAlphabet<\/a>\u00a0is set to double its capex to between $175 billion and $185 billion this year.
\nAnd Amazon<\/a> has projected a 51% increase in its capex to $200 billion for 2026.<\/p>\n
Hundreds of billions of dollars have already been funneled into AI hardware buildout because data centers aren’t cheap. They can cost anywhere from $7 million to $12 million per megawatt just to build. Add in the power bill and maintenance costs and it only gets pricier.<\/p>\n
And there are two pick-and-shovel plays in the tech industry that will profit (albeit indirectly) from just about every data center built anywhere in the world.<\/p>\n
![\"A](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/03\/1773115210_883_.jpeg\"\/)
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Image source: Getty Images.<\/p>\n
Chip and shovel<\/p>\n
Up first is Taiwan Semiconductor Manufacturing (TSM<\/a> +2.83%), the world leader in the pure foundry segment of the semiconductor industry. As of the end of Q3 2025 it controlled a 72%-and-growing share of the market with No. 2 Samsung Electronics controlling just 7%.<\/p>\n Taiwan Semiconductor doesn’t design any of its own chips; it simply manufactures them for other companies. And that client list includes Apple<\/a>\u00a0and Nvidia<\/a>, which has its Blackwell chip produced at Taiwan Semiconductor’s factory in Arizona. <\/p>\n This company is the reason the country of Taiwan produces 60% of the world’s semiconductors and 90% of its advanced chips, which are semiconductors of 7 nanometers or smaller and are necessary for advanced AI algorithms.<\/p>\n Taiwan Semiconductor has such control over the market, it’s nearing monopoly status, and it has the balance sheet to prove it.<\/p>\n For 2025, the company brought in revenue of $122.42 billion, up 35.9% year over year. It grew its diluted earnings per share (EPS) 46%, its operating cash flow surged 24.6%, and its free cash flow was up 15.2%.<\/p>\n Taiwan Semiconductor Manufacturing<\/p>\n Today’s Change<\/p>\n (2.83%) $9.58<\/p>\n Current Price<\/p>\n $348.47<\/p>\n Key Data Points<\/p>\n Market Cap<\/p>\n $1.8T<\/p>\n Day’s Range<\/p>\n $331.97 – $349.40<\/p>\n 52wk Range<\/p>\n $134.25 – $390.20<\/p>\n Volume<\/p>\n 1.1M<\/p>\n Avg Vol<\/p>\n 13M<\/p>\n Gross Margin<\/p>\n 58.73%<\/p>\n Dividend Yield<\/p>\n 0.91%<\/p>\n Every data center needs the semiconductor chips Taiwan Semiconductor produces, and it has an extremely large moat to protect its market dominance.<\/p>\n![\"Taiwan](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/03\/1773115211_209_.png\"\/)
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![\"ASML](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/03\/1773115211_810_.png\"\/)
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