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 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).

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 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.

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This article originally published on Zacks Investment Research (zacks.com).

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