The Only 3 Stocks You Need to Capitalize on AI Spending | The Motley Fool

Spending on artificial intelligence (AI) is projected to reach new heights in 2026. It’s clear that hyperscalers see huge potential in this technology, and none of them wants to risk being left behind by their peers.

As a result, they’re spending record amounts on data centers and the computing equipment that goes into them. While there are several ways to invest in the AI building boom — among them, energy companies, construction businesses, or other equipment providers — I view Nvidia (NVDA 2.21%), Broadcom (AVGO 1.87%), and Taiwan Semiconductor Manufacturing (TSM 0.51%) as no-brainer buys to capitalize on the trend.

All three are making plenty of money from it right now, and odds are, they will make even more over the next few years as the huge spending continues.

The AI building boom is just beginning

Over the past few weeks, we’ve heard from Amazon, Alphabet, and Meta Platforms about what they plan to lay out this year on capital expenditures. Amazon told investors to expect $200 billion, while Alphabet gave a range of $175 billion to $185 billion. Meta’s guidance was the lowest of the group — it expects to spend in the range of $115 billion to $135 billion. Together, that’s over $500 billion if each lands at the midpoint of its forecast range, and it doesn’t even include what Microsoft will spend.

Where is all of that money going? To build data centers and…