Amazon’s rapidly growing AWS business and massive AI infrastructure investments position it as a major beneficiary of the AI boom.
TSMC plays a crucial role in meeting hardware demand for AI infrastructure buildout.
Strong financial momentum and aggressive capacity expansion can help both companies capitalize on this AI wave.
Global markets in 2026 are facing a host of problems, including geopolitical tensions, higher oil prices, and renewed inflation concerns. In this environment, investors are increasingly opting for companies with sustainable competitive advantages and robust financials.
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In case you have $1,000 that is not required to pay bills or set aside for contingencies, two stocks worth considering in this environment are Amazon (NASDAQ: AMZN) and Taiwan Semiconductor Manufacturing (NYSE: TSM).
Amazon has emerged as one of the biggest beneficiaries of the ongoing artificial intelligence (AI) infrastructure buildout. Through Amazon Web Services (AWS), the company provides the critical cloud infrastructure that many businesses rely on to train, deploy, and run AI applications at scale.
In the fourth quarter of fiscal 2025 (ending Dec. 31, 2025), AWS revenue grew 24% year over year to $35.6 billion, marking its fastest growth in the past 13 quarters. AWS exited fiscal 2025 as a $142 billion annualized run rate business. Amazon plans to spend about $200 billion in capex in 2026, with a large portion directed toward expanding AWS infrastructure to meet soaring demand for both traditional cloud and AI workloads.
Amazon is further strengthening AWS' position with custom silicon. Its proprietary Trainium and Graviton chips now generate more than $10 billion in annual revenue run rate and offer better price-performance than many traditional chips. These custom chips are helping reduce AI computing costs and will boost AWS' margins over time.
Amazon has also entered into long-term agreements with strategic players such as OpenAI, Visa, and Salesforce. These deals are ensuring long-term revenue visibility for AWS and reinforcing its position as a critical AI platform.
Finally, Amazon has another powerful profit engine in advertising, with revenues rising 22% year over year to $21.3 billion in the fourth quarter of 2025.
Hence, considering Amazon's accelerating AWS growth, massive AI infrastructure investments, custom silicon strategy, and rapidly expanding advertising business, the company seems a safe and reliable pick in the current uncertain economic environment.
Taiwan Semiconductor Manufacturing (or TSMC) manufactures advanced chips for major AI chip designers such as Nvidia, Advanced Micro Devices, and Broadcom. Operating the largest global foundry, TSMC sits at the center of the global AI boom.
The demand for the company's cutting-edge chips has been rising. Nvidia CEO Jensen Huang has said that TSMC may need to double its production capacity over the next decade, just to meet Nvidia's AI demand. Broadcom is also reported to have secured TSMC's advanced node production capacity for AI chip production through 2028.
TSMC's recent financial performance already reflects the strong demand trends. In the fourth quarter of fiscal 2025 (ending Dec. 31, 2025), revenues were up 26% year over year to $33.7 billion. The company also reported record gross margins of 62.3% and a net profit margin of 48.3%. The financial momentum seems to be accelerating, with the company's revenues rising nearly 37% year over year in January 2026.
TSMC already plans to invest $52 billion to $56 billion in capex in 2026. Of this, 70% to 80% will be directed toward advanced chip manufacturing. With AI and high-performance computing workloads heavily reliant on the company's advanced process nodes, TSMC will continue to enjoy strong pricing power.
All these factors position TSMC as a smart pick in March 2026.
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Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Nvidia, Salesforce, Taiwan Semiconductor Manufacturing, and Visa. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.