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3 Stocks Set to Benefit from Long-Term AI Tailwinds
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, ASML Holding and BWX Technologies 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).
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.
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.
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 the companies listed above 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.
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Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Taiwan Semiconductor Manufacturing, ASML and BWX Technologies
For Immediate Release
Chicago, IL – October 15, 2026– Today, Zacks Investment Ideas feature highlights Taiwan Semiconductor Manufacturing (TSM - Free Report) , ASML Holding (ASML - Free Report) and BWX Technologies (BWXT - Free Report) .
3 Stocks Set to Benefit from Long-Term AI Tailwinds
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, ASML Holding and BWX Technologies 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).
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.
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.
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 the companies listed above 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.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.