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15 handpicked stocks

Powering The AI Revolution: The Hardware Backbone

Foxconn's record profits, driven by AI server demand, signal a massive investment cycle in the physical infrastructure of artificial intelligence. This theme focuses on the essential companies that manufacture the servers, components, and data center hardware that form the backbone of the AI revolution.

Author avatar

Han Tan | Market Analyst

Published on August 14

Your Basket's Financial Footprint

Market capitalisation breakdown for the specified AI hardware basket.

Key Takeaways for Investors:
  • Large-cap dominance generally implies greater stability and lower volatility; returns likely to track broad market movements.
  • Consider as a core holding within a diversified portfolio; not suited for speculative, high-risk positioning.
  • Expect steady long-term growth rather than rapid, short-term gains; upside likely incremental over time.
Total Market Cap
  • NVDA: $4.40T

  • TSM: $1.23T

  • ASML: $400.56B

  • Other

About This Group of Stocks

1

Our Expert Thinking

The AI revolution isn't just about clever software - it needs massive physical infrastructure. With companies like Foxconn reporting record profits from AI server demand, we're seeing a major investment cycle in the hardware that powers artificial intelligence. This creates opportunities for the companies building the essential components.

2

What You Need to Know

This group focuses on the physical backbone of AI - from server manufacturers to semiconductor designers and component suppliers. These companies benefit from the enormous capital flowing into data centres as businesses rush to build AI capabilities. It's a tactical play on current technology investment trends.

3

Why These Stocks

These companies were handpicked because they're essential to the AI hardware build-out. They manufacture servers, design semiconductors, produce memory chips, and supply critical components like cooling systems and networking equipment. Professional analysts identified them as key beneficiaries of the AI infrastructure boom.

Why You'll Want to Watch These Stocks

🚀

Riding The AI Infrastructure Wave

With Foxconn's 27% profit surge from AI server demand, we're seeing the start of a massive hardware build-out. These companies are positioned at the centre of this technological shift.

💰

Following The Smart Money

Billions are flowing into data centres as companies race to build AI capabilities. The hardware suppliers in this group are direct beneficiaries of this capital investment cycle.

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The Essential Building Blocks

AI needs more than clever algorithms - it requires servers, chips, cooling systems, and networking equipment. These companies make the physical infrastructure that powers the AI revolution.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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