Despite positive reports from Alphabet, Microsoft, and Amazon last week, their stock prices fell due to concerns about overspending on AI. Alphabet plans to spend $180 billion in 2026, Microsoft spent $37.5 billion in Q2, and Amazon plans to spend $200 billion in 2026. Investors can benefit from these spending sprees by investing in suppliers like Taiwan Semiconductor Manufacturing, Nvidia, and Applied Digital.

Taiwan Semiconductor Manufacturing (TSMC) works with major chip designers, benefiting from AI development. TSMC’s capex was $41 billion in 2025 and is expected to rise to $54 billion. The market is optimistic about TSMC’s expansion, as it efficiently meets rising AI demands and recently moved production to the U.S.

Nvidia, a leading GPU provider, is poised for growth as hyperscalers invest in powerful chips and platforms. Its products create high barriers to entry, and it continues to launch new, powerful solutions. With AI spend projected to reach trillions, Nvidia remains a top choice for clients seeking competitive edge.

Applied Digital shifted from crypto-mining to AI infrastructure, enjoying a 250% sales increase in Q2 2026. Despite being unprofitable, its net loss improved, and it secured a $5 billion deal for 15 years. Positioned to handle growing demand, Applied Digital is on track for sustained growth alongside hyperscalers and suppliers.

Read more at Nasdaq: Amazon, Microsoft, and Alphabet Stocks Plummet on AI Investments. These 3 Stocks Are Set to Win.