The AI revolution continues to fuel strong demand across the semiconductor industry, with companies that manufacture advanced chips and the equipment needed to produce them seeing significant benefits. The massive buildout of AI infrastructure has also created opportunities beyond the semiconductor space, particularly within the energy sector.
For those seeking exposure to the favorable AI-related tailwinds, Taiwan Semiconductor Manufacturing TSM, ASML Holding ASML, and BWX Technologies BWXT fit the criteria. All three recently posted strong quarterly results, with growth forecasts also remaining strong.
Taiwan Semiconductor Sees Huge Growth (Again)
Taiwan Semiconductor has undoubtedly been among the biggest beneficiaries of the AI boom, with its advanced manufacturing capabilities critical for producing the powerful chips that AI applications demand.
The company's latest quarterly results reflected continued momentum, with revenue climbing 41% YoY to $46.7 billion. Earnings similarly soared 58% from the same period last year, with demand for advanced chips remaining red-hot.
Importantly, its advanced 2nm, 3nm, and 5nm technologies accounted for 69% of total wafer revenue, reflecting the continued shift toward leading-edge manufacturing.
Both the earnings and sales outlook remain bright as well, with management forecasting Q4 revenue between $52.3 billion and $54.3 billion and the stock currently sporting a favorable Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
BWXT Benefits from Nuclear Demand
BWX Technologies is similarly positioned to benefit from the AI revolution, though in a much different way. Its nuclear-related offerings are increasingly attractive as the massive buildout of AI data centers drives electricity demand higher.
The company recently delivered a solid quarterly release, posting $901.6 million in revenue and adjusted EPS of $1.07, reflecting YoY growth rates of 18% and 5%, respectively. Its backlog also climbed 40% YoY to $8.4 billion, providing solid visibility for the periods to come.
While government contracts and broader nuclear demand remain the primary drivers of its current results, the AI-related electricity boom adds another favorable longer-term catalyst. The strong performance also led management to raise its FY26 adjusted EPS guidance to $4.70-$4.8, with annual EPS revisions remaining on a bullish trajectory over the past year.
Image Source: Zacks Investment Research
The AI-related nuclear opportunity remains promising, but much of the potential upside is longer-term, contrasting the more immediate benefits semiconductor companies have been experiencing, helping explain the weakness in shares we’ve seen throughout 2026.
ASML Sees Strong Demand
ASML Holding is another major beneficiary of the AI revolution, providing critical lithography equipment used to manufacture advanced semiconductors. The company's offerings have become increasingly important as chipmakers expand capacity to meet robust AI-related demand.
Its latest quarterly release was solid again, with revenue climbing 52% YoY to $13.4 billion alongside 132% YoY growth in adjusted EPS. The favorable backdrop led the company to raise its FY26 revenue guidance, with EPS revisions also remaining on an upward trajectory across the board.
Image Source: Zacks Investment Research
The longer-term outlook remains bright as AI infrastructure investments continue to drive demand for increasingly advanced chips, with ASML's lithography technology playing a critical role in their production.
Bottom Line
The AI revolution continues to create opportunities, with Taiwan Semiconductor TSM, BWX Technologies BWXT, and ASML Holding ASML each positioned to continue benefiting.
TSM and ASML remain the most direct beneficiaries from a near-term standpoint, while BWXT’s outlook is considerably more long-term focused as the energy industry evolves to meet the soaring demands of power stemming from the boom.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ASML Holding N.V. (ASML): Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
BWX Technologies, Inc. (BWXT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).