TSMC Makes the List! Foreign Media Names 3 AI Giants with Stronger Fundamentals Than SpaceX

The AI investment boom continues to heat up—should investors bet on future potential or choose companies already generating profits? Foreign media analysis suggests that while SpaceX captures market attention with its space economy narrative, commercialization will take time. In contrast, companies already benefiting directly from the artificial intelligence (AI) wave and possessing stable profitability are more attractive to investors. Among them, The Motley Fool analyst Keithen Drury names NVIDIA, TSMC, and Broadcom as three tech giants positioned at the forefront of the AI industry, poised to continue reaping growth benefits from AI infrastructure development. SpaceX is currently valued at approximately $1.5 trillion (about NT$44.25 trillion), making it one of the world's most valuable private companies. However, Drury points out that while SpaceX is expected to generate around $18.7 billion (NT$551.7 billion) in revenue in 2025—a 33% year-on-year increase—it has yet to achieve net profitability. The company's future goal is to reach a 45% net profit margin. In other words, investing in SpaceX today is essentially a bet on the long-term development of the space economy and the possibility of future commercial success, rather than on current earnings performance. Therefore, with its valuation already reflecting high growth expectations, investors must also bear significant uncertainty. In contrast, analysts are more optimistic about three companies that have already secured core positions in the AI supply chain: NVIDIA, TSMC, and Broadcom. NVIDIA dominates the global AI computing market through its GPU technology. Whether it's training large language models, generative AI, or building AI data centers for major tech firms, its products are highly dependent on NVIDIA's offerings. With rising AI demand, NVIDIA has seen rapid growth in revenue and profits in recent years, becoming one of the biggest beneficiaries of the AI wave. As the world's leading semiconductor foundry, TSMC plays an indispensable role in the AI supply chain. International chipmakers like NVIDIA and Broadcom rely on TSMC's advanced manufacturing processes to produce high-performance AI chips. As global tech companies continue to expand investments in AI data centers, demand for high-end chips is rising, providing TSMC with stable and sustained order momentum. Analysts believe that TSMC, with its advanced process technology and leading edge, will remain a key long-term beneficiary of the AI industry. In addition to NVIDIA and TSMC, Broadcom has also benefited from the rapid growth in demand for AI-customized ASIC chips. Analysis shows that Broadcom's revenue over the past year has already far exceeded that of SpaceX. As major cloud service providers continue investing in AI infrastructure, the growing demand for customized AI chips has become a key driver pushing Broadcom's performance. Analysts note that the biggest common advantage of NVIDIA, TSMC, and Broadcom is that all three directly benefit from global AI infrastructure investment. Major tech companies are continuously expanding AI data centers, purchasing high-performance computing equipment, and increasing chip production capacity—generating stable demand across the supply chain. The market widely expects that as long as the AI investment boom continues, these three companies will maintain revenue and profit growth. While the long-term potential of the space economy is undeniable, and SpaceX may become a key player in global space commerce, the current market valuation of SpaceX already reflects substantial future growth expectations. In contrast, NVIDIA, TSMC, and Broadcom have already established robust profit models and are directly riding the fast-growing AI industry train. For investors seeking to capitalize on AI trends while prioritizing solid fundamentals, these three tech giants are currently seen as more attractive investment targets. Source: The Motley Fool Editor: Wei Fucheng