Spending on artificial intelligence (AI) infrastructure continues to soar, benefiting stocks across the semiconductor value chain. In June, Bloomberg Intelligence predicts that AI spending on hardware, software, and services will reach $2.3 trillion by 2032, including $658 billion for AI training and $1.3 billion for inference. It’s a big market that should produce many winners.
With that in mind, let’s take a look at what an investment of around $5,100 spread across a basket of top AI infrastructure stocks, including Nvidia (NVDA +0.14%), Advanced microdevices (AMD +2.80%), Broadcom (AVGO +3.67%), Semiconductor manufacturing in Taiwan (TSM -0.72%)And ASML (ASML -1.39%) – could return by 2030.
Image source: Getty Images.
Semiconductor stocks are often valued based on a forward P/E, so we’ll use that as our North Star to determine potential future stock prices. So, for 2030 valuations, we will use analyst EPS estimates for 2031 when available.
1.Nvidia
For our semiconductor basket, Nvidia is our main player in the AI training and graphics processing unit (GPU) market. However, the company has truly transformed itself into a comprehensive AI player. With $940, you could buy four shares.
Today’s change
(0.14%) $0.34
Current price
$239.24
Key Data Points
Daily scope
$238.93 -$243.37
52 week range
$164.27 -$243.37
Volume
101.7 million
Average flight
122.6 million
Gross margin
74.67%
Dividend yield
0.22%
Analysts currently expect the stock to report adjusted EPS of $24.79 in fiscal 2032 (ending January), which is close to calendar year 2031. Applying a similar forward P/E multiple of 15 times what it has today would value the stock at $372, bringing your investment to almost $1,500. This represents a yield of approximately 60%.
2. AMD
AMD is following two of the strongest trends in the market. It is a significant player in the inference market, with GPUs for inference and agentic AI on CPUs. With $633 you could buy one stock.
The current consensus EPS for AMD for 2030 is $45.25, and assuming an additional 20% growth in 2031 would bring it to $54.30. That’s a huge increase from the $7.58 per share that analysts expect to earn this year. Multiply that amount by 20 given its growth, and the stock would be worth $1,086. This represents a gain of 72%.
Today’s change
(3.67%) $1:30 p.m.
Current price
$375.81
Key Data Points
Daily scope
$364.01 -$380.84
52 week range
$289.96 -$495.00
Volume
30.8 million
Average flight
22.6 million
Gross margin
66.54%
Dividend yield
0.69%
3. Broadcom
Broadcom is the basket investment in custom AI chips and networks. The ASIC (application-specific integrated circuit) market is expected to grow faster than the GPU market, and Broadcom is expected to be the biggest beneficiary. With $710, you could buy two shares.
Analysts currently expect the company’s earnings to reach $52.15 in fiscal year 2031 (ending October 2031). Multiply that estimate by 15 and the stock would be trading at $782. This would represent a gain of 120%, increasing your investment to $1,564.
4. Semiconductor Manufacturing in Taiwan
Taiwan Semiconductor Manufacturing is the world’s leading foundry, with a near-monopoly in advanced chip manufacturing. Investing in stocks is a great way to profit from the global chip boom. With $945 you can buy two shares.
The analyst consensus only extends to 2028, with a consensus of $28.33. Assuming growth of 25% the following year, 22.5% the following year, and 20% in 2031, this would bring its EPS to $39.80. Place a forward P/E multiple of 17.5 times (given its monopoly-like position) and you get a stock worth almost $700 in 2030. That’s a gain of about 48%, bringing the total investment to $1,400.
Semiconductor manufacturing in Taiwan
Today’s change
(-0.72%) $-3.50
Current price
$482.30
Key Data Points
Daily scope
$481.48 -$486.00
52 week range
$266.82 -$487.47
Volume
8.3 million
Average flight
11.4 million
Gross margin
63.08%
Dividend yield
0.78%
5. ASML
Without ASML, the AI boom would not be possible. The company has a monopoly on extreme ultraviolet (EUV) lithography technology used to manufacture critical components in advanced logic chips, such as GPUs, and high-bandwidth memory (HBM). With $1,865 you could buy one share of the Dutch company.
Because it is a monopoly, AMSL typically commands a very high multiple. For 2030, analysts forecast EPS of $101.57, and if we estimate an additional 10% growth, it would reach $111.72. Assign a multiple of 30 to it and the stock would be trading at $3,351, which equates to an 80% gain.
The total
In total, your initial investment would be just under $5,100 and your final investment for 2030 would be worth $8,900. That’s a solid 75% gain in about four years.
Obviously, there are many variables at play. If the AI infrastructure boom collapses, you could see a negative return, but if profits are constantly growing, which tends to happen, the stocks could also generate much higher returns. Still, this looks like a solid basket of AI stocks to buy and hold for the long term.
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