The AI chip market is entering a decade-long expansion that’s hard to ignore. Forecasts now peg the sector’s growth from $94.4 billion in 2025 to $927.76 billion by 2034. That’s a compound annual growth rate of 28.9%, not a typo. The demand for compute is exploding, and the companies building the silicon, the tools, and the infrastructure are lining up for a windfall.
The foundation layer starts with ASML, TSM, and AMAT. These are the enablers. ASML trades at $801.93 with a $318 billion market cap. It supplies the extreme ultraviolet lithography machines that make advanced chips possible. TSM is sitting at $230.40 with a $976 billion valuation. It’s the world’s largest contract chipmaker and the backbone of every major AI chip rollout. AMAT is priced at $197.93 and holds a $158.8 billion market cap. It builds the tools that fabricate the wafers. Without these three, there is no AI chip market.
Tier two is where the chips get built. Nvidia is the obvious leader, trading at $164.92 with a $4.02 trillion market cap. It’s already deploying Blackwell GB300 units and dominates the training stack. AMD is priced at $146.42 with a $237.4 billion valuation. It’s pushing MI325X units and gaining traction in inference. Broadcom sits at $274.38 with a $1.29 trillion market cap. It’s building custom ASICs for hyperscalers and telecoms. These are the chipmakers. They’re not guessing. They’re shipping.
Tier three is the infrastructure layer. NBIS, CRWV, and CDNS are building the scaffolding. NBIS trades at $133.46 with a $13.2 billion market cap. It’s converting legacy compute into AI-ready clusters. CRWV is in the middle of a $9 billion acquisition of Core Scientific, adding 1.3 gigawatts of data center power. CDNS is priced at $320.60 with an $87.5 billion valuation. It builds the software tools that design the chips before they ever hit silicon. These are the picks and shovels.
The market is not pricing in the full stack. Most investors are chasing the obvious names. But the real upside may sit in the companies that enable, fabricate, and deploy the infrastructure. The CAGR is aggressive. The estimates are directional. But the buildout is real.
Sources:
https://www.precedenceresearch.com/artificial-intelligence-chip-market
https://finance.yahoo.com/quote/ASML
https://finance.yahoo.com/quote/TSM
https://finance.yahoo.com/quote/AMAT
https://finance.yahoo.com/quote/NVDA
https://finance.yahoo.com/quote/AMD
https://finance.yahoo.com/quote/AVGO
https://finance.yahoo.com/quote/NBIX
https://finance.yahoo.com/quote/CDNS
https://finance.yahoo.com/news/coreweave-acquire-core-scientific-122700931.html