A few stocks in the AI sector are performers today and can have the potential to remain performers in the long term.
Meta’s AI Power Play: Big Bets, Bigger Brains, and the Race to Monetize
Key Takeaway: Meta isn’t just experimenting with AI. It’s reorganizing itself around it. With revamped infrastructure, billions in daily engagement, and now the mind behind Scale AI joining its ranks, Meta is taking AI from science project to strategic advantage.
The Quarter That Rewired Meta’s DNA
Meta Platforms Inc., home to Facebook, Instagram, WhatsApp, and Threads, is no longer just a social networking powerhouse. It is actively rebuilding its foundation with AI at the center. For the quarter ended March 31, 2025, Meta posted $42.31 billion in revenue and $16.64 billion in net income, a 35 percent year-on-year jump. But what’s more compelling than the numbers is how they’re being driven.
The company now reaches over 3.43 billion daily users, with strong momentum across Asia Pacific. AI recommendations continue to improve user engagement, particularly among younger audiences, while advertising algorithms become increasingly personalized and effective. In FY24, Meta spent over $75 billion scaling infrastructure across its Family of Apps segment, prioritizing AI models, smart data routing, and long-term server efficiency.
Meanwhile, Meta invested nearly $20 billion into Reality Labs, focusing on AR wearables like the Ray-Ban Meta glasses and emerging tech like neuromuscular interfaces. The company’s push for embodied computing isn’t just theoretical. It is well-funded and already on shelves.
The market has responded. Meta’s stock doubled in a year, climbing from $276.40 on June 20, 2024, to $573.20 by June 20, 2025.
Why Meta Hired the Brain Behind 70 Percent of AI Models
In one of its boldest moves yet, Meta brought in Alexandr Wang, the 28-year-old founder of Scale AI, to lead a new internal AI division focused on superintelligence. Wang isn’t just another tech visionary. He has led a company that played a role in developing nearly 70 percent of AI models globally. His deep knowledge of how competitors like Google and OpenAI train and deploy models gives Meta a rare strategic edge.
But the move isn’t just about talent. It is also about disruption. By onboarding Scale’s founder, Meta has pulled a valuable ally away from rivals who relied on Scale’s services. This strengthens Meta’s internal capabilities and forces competitors to reconfigure their own strategies. According to industry sources, companies like Google will need to rebuild trust and partnerships elsewhere, a delay Meta can use to gain ground.
Wang is expected to help Meta shift from using AI as an internal enhancer to building direct monetizable services from its LLaMa models and consumer-facing features. His rare mix of technical and business expertise could be what finally turns Meta’s AI potential into revenue reality.
This Isn’t Just Ambition. It’s Execution
Meta Platforms Inc., based on FY24 and Q1 FY25 data and recent strategic shifts, is showing what, a full-scale AI reinvention looks like. Its infrastructure is being modernized. Leadership has been upgraded with one of the AI world’s most connected minds. Product rollouts are grounded in real user ecosystems.
There are still hurdles. LLM monetization will take time, and new regulations, particularly in Europe, will test flexibility. But Meta has proven it is not just reacting to the AI wave. It is working to shape it. With the vision, tools, and talent now in place, the company is no longer positioning itself as a tech giant playing catch-up. It is defining the next era of digital intelligence.
TSMC’s Silent Strength: Powering the AI Race from Behind the Scenes
Key Takeaway: While flashy names dominate AI headlines, Taiwan Semiconductor quietly builds the chips that make it all possible. As the industry’s ultimate enabler, it powers everyone from Nvidia to Alphabet, yet trades at a valuation that still feels like a steal.
The Chipmaker Everyone Depends On
Taiwan Semiconductor Manufacturing Company (TSMC) remains the quiet backbone behind the AI revolution. Giants like Nvidia, AMD, Meta, and Google all rely on TSMC’s advanced manufacturing expertise to fabricate their cutting-edge chips. With nearly 90% of global AI chip production flowing through its facilities, TSMC is more than dominant - it’s indispensable.
In just the first quarter of 2025, the company generated $25.5 billion in revenue (a 41% jump YoY), with EPS climbing to $2.12 per ADR. Nearly every major innovation in AI starts with chips built by TSMC - a fact often overlooked by markets still obsessed with software names.
Pioneering the Next Generation of Chip Technology
TSMC is now pushing the frontier with its next wave of nanosheet technologies: N2, N2P, and A16. The N2 logic node, its most advanced yet, promises major gains in performance, speed, and chip density with improvements of 25-30% in speed and over 15% in efficiency versus its N3E predecessor. Mass production is expected to kick off in the second half of 2025, and early projections suggest stronger adoption than any previous 3nm or 5nm node.
Meanwhile, the N2P node, launched in Q1 2025, builds on N2 with better power efficiency and performance, serving as a bridge to A16 - a nanosheet-based upgrade tailored specifically for high-performance computing and AI. A16 itself is forecasted to deliver up to 20% performance improvements and over 10% chip density gains compared to N2P.
Big names are already lining up. Apple plans to use N2 chips in its upcoming iPhones and Macs, while AMD is targeting enhanced CPU and GPU performance using the same advanced nodes.
The Pick-and-Shovel Play for the AI Gold Rush
Unlike companies competing to own AI models, TSMC wins regardless of who takes the lead. It builds the foundational chips that fuel every major player’s ambitions. From Nvidia’s AI-dominant GPUs to Amazon’s and Meta’s custom silicon it all flows through TSMC’s fabs.
CEO C.C. Wei has reaffirmed that AI chip revenues are expected to double by 2025. The company’s neutrality manufacturing for everyone from Big Tech to startups cements its place at the center of the AI supply chain.
Undervalued for Now, But Not for Long
Despite its critical role, TSMC remains attractively priced with a forward P/E around 23, and trailing P/E near 28. Even with a 142% gain over three years, it trades well below peers like Nvidia and AMD. The stock is up roughly 8% in 2025 and sits just 5% below all-time highs.
But valuation doesn’t reflect its massive capital deployment. After pumping $65 billion into Arizona operations, TSMC recently unveiled another $100 billion commitment to U.S. expansion - including three new fabs, two chip packaging facilities, and a full-scale R&D center.
With fabs in both Taiwan and Arizona preparing for volume production of N2P and A16 in the second half of 2025, the company is well-positioned for the next wave of AI and HPC growth. With over $700 billion in trailing 12-month free cash flow, it’s funding the expansion through sheer financial strength.
Why the AI Boom Can’t Happen Without TSMC
Whether Nvidia retains its GPU lead or new challengers rise, the one constant is TSMC. It turns silicon blueprints into reality. No chip designer - from Apple to AMD - can operate at scale without its fabrication ecosystem.
In the AI arms race, TSMC isn’t just a supplier. It’s the foundation.
(Source: Company Announcements)
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