2025 AI Stock Investment Panorama: From Industry Chain Layout to Leading Companies' Profits

The Substance and Market Positioning of AI Concept Stocks

Artificial Intelligence (AI) has permeated from the technological frontier into daily life, with applications ranging from voice assistants, financial forecasting, to medical diagnostics and autonomous driving. When we talk about AI concept stocks, we are essentially investing in the entire ecosystem behind this technological revolution—including chip manufacturers, server providers, cloud platforms, and AI software service providers.

In simple terms, AI stocks are those listed companies whose business operations are closely intertwined with artificial intelligence technology. They may not directly develop AI algorithms but provide hardware infrastructure, computing platforms, or implementation solutions for AI applications. The logic of investing in AI concept stocks fundamentally involves betting on whether this wave of computing power revolution can continue to unleash commercial value.

Reshaping the AI Industry Chain: From Hardware to Application

To understand investment opportunities in AI stocks, it is essential to grasp the vertical structure of the industry chain. Upstream are chips and computing hardware (GPU, ASIC, accelerated servers); midstream includes data center infrastructure and cloud platforms; downstream involves AI applications across various industries.

Unstoppable Momentum in Hardware and Computing Power

According to the latest IDC report, global enterprise spending on AI solutions and technologies is projected to reach $307 billion by 2025. By 2028, this figure will climb to $632 billion, with a compound annual growth rate of about 29%. Notably, the share of accelerated server expenditure will exceed 75% by 2028, becoming the core hardware supporting AI commercialization.

What does this imply? The explosion in hardware demand has only just begun. Whether training large language models or deploying inference applications, massive computing clusters are required behind the scenes. This directly creates ongoing demand for chips, servers, cooling systems, and network equipment.

Signals from Capital Allocation

Industry trends can verify this point. Bridgewater Associates significantly increased holdings in NVIDIA, Alphabet, Microsoft, and other key AI stocks in Q2 2025. This not only reflects institutional confidence in AI prospects but also highlights their strategic positioning at the core nodes of the AI ecosystem—computing power, chips, and cloud computing.

Besides individual stocks, AI-themed funds and ETFs are also rapidly expanding. As of the end of Q1 2025, global assets in AI and big data funds exceeded $30 billion, indicating strong market demand for AI allocations.

Leading AI Stocks in Taiwan: Who is Harvesting the Benefits?

Quanta Computer (2382): From OEM to AI Server Hub

Quanta Computer was once the world’s largest laptop OEM, but the company is undergoing a remarkable transformation. Its subsidiary, Quanta Cloud Technology (QCT), specializes in servers and cloud solutions, successfully entering the supply chain of large US data centers and AI servers. Major clients include NVIDIA and international cloud service providers.

In 2024, Quanta’s revenue reached NT$1.3 trillion, with an increasing proportion from AI server business and improving gross margins. Entering 2025, this momentum accelerated—Q2 revenue surpassed NT$300 billion, up over 20% year-on-year, reaching a new high for the same period. Foreign investors are optimistic about Quanta’s long-term growth driven by AI and cloud trends, with an average target price between NT$350 and NT$370, still room for upside from current levels.

Realtek Semiconductor (3661): The Hidden Champion in ASIC Design

Realtek is a representative Taiwanese AI chip design service provider, mainly engaged in ASIC (customized chips) design, serving US cloud giants and leading companies in high-performance computing and AI fields. In 2024, full-year revenue was NT$68.2 billion, with a growth rate exceeding 50%, demonstrating strong growth driven by AI demand.

Q2 2025 was particularly impressive—quarterly revenue exceeded NT$20 billion, doubling compared to the same period last year. Gross margin and net margin continued to improve as large AI customer projects entered mass production, and new AI accelerators and data center orders were received. With the rapid expansion of generative AI applications worldwide, the market is optimistic about Realtek’s long-term growth, with foreign institutional target prices between NT$2,200 and NT$2,400, still with potential upside.

Delta Electronics (2308): The Unsung Hero in Power and Cooling

Delta Electronics is a global leader in power management and energy solutions, but few realize they are a key participant in the AI server supply chain. Their high-efficiency power supplies, cooling, and cabinet solutions are indispensable in modern data centers. In 2024, revenue was about NT$420 billion, with the contribution from data centers and AI applications steadily increasing.

In Q2 2025, revenue was approximately NT$110 billion, up over 15% year-on-year, with high gross margins maintained. As demand for AI servers and data center infrastructure expands, Delta’s growth momentum becomes even more evident.

MediaTek (2454): Driving Mobile AI and Edge Computing

MediaTek is among the top ten fabless semiconductor companies globally, with core businesses including mobile chips, smart home, automotive electronics, and networking chips. With the rise of generative AI and edge computing, MediaTek is actively advancing its AI chip layout. The Dimensity series mobile platforms now include enhanced AI computing units, and collaborations with NVIDIA are underway for automotive and edge AI solutions.

In 2024, revenue reached NT$490 billion, with gross margins improving quarter by quarter. In Q2 2025, revenue was about NT$120 billion, up approximately 20% year-on-year. Foreign investors see MediaTek as a key representative of Taiwan’s long-term AI concept stocks, with a target price between NT$1,300 and NT$1,400.

Unimicron (3324): The Liquid Cooling Solution Provider in the Supply Chain

As AI server chips’ power consumption surpasses kilowatts, traditional air cooling hits a bottleneck. Unimicron focuses on high-performance water cooling modules, successfully positioning itself in the global AI server supply chain and becoming a crucial driver of AI infrastructure upgrades. In 2024, revenue was NT$24.5 billion, with over 30% annual growth.

In 2025, Unimicron’s growth accelerates further. Major cloud service providers are speeding up the adoption of liquid cooling solutions, with shipments of water cooling modules for AI servers surging from Q2 onwards. With new generation, higher-power AI accelerators entering the market, the penetration rate of liquid cooling will rise rapidly. Foreign institutions generally remain optimistic about its profitability, with target prices mostly above NT$600.

Top AI Stocks in the US: Top Players in the Global Computing Race

NVIDIA (NVDA): The Absolute Leader in AI Computing

NVIDIA is the undisputed leader in global AI computing. Its GPUs and CUDA software platform have become industry standards for training and deploying large AI models. As the generative AI wave sweeps the world, NVIDIA dominates the AI infrastructure market and is viewed as the core engine driving this technological revolution.

In 2024, revenue reached $60.9 billion, with an increase of over 120%. In Q2 2025, revenue hit a new high of approximately $28 billion, with net profit growth exceeding 200%. The main drivers are strong demand from cloud service providers and large enterprises for Blackwell architecture GPUs. As AI applications shift from training to inference, the demand for high-performance computing solutions will continue to grow exponentially. It is difficult to replace in the short term, and many institutions have raised target prices and issued buy ratings.

Broadcom (AVGO): The Infrastructure Provider for AI Data Centers

Broadcom plays a critical role in AI chips and network connectivity. Leveraging its customized ASIC chips, network switches, and optical communication chips, it has successfully positioned itself in the AI data center supply chain. In FY2024 (ending Nov 3, 2024), revenue was $31.9 billion, with AI-related product revenue rapidly increasing to 25%.

Entering 2025, Broadcom’s AI deployment continues to bear fruit. Q2 revenue increased 19% year-over-year, benefiting from large cloud providers accelerating AI data center deployments. As AI model sizes grow, the demand for high-performance network connectivity and customized chips will surge. Most foreign reports are optimistic about its AI product lines, with target prices above $2,000.

AMD (AMD): The Challenger in AI Accelerators

AMD is a key innovator in high-performance computing. Its Instinct MI300 series accelerators and CDNA 3 architecture have successfully entered the AI chip market dominated by NVIDIA, providing an important secondary supply source for cloud service providers. In 2024, revenue was $22.9 billion, with data center business growing 27% annually.

In Q2 2025, AMD’s revenue grew 18% year-over-year. Benefiting from the adoption of MI300X accelerators by major cloud providers, AI-related revenue has multiplied. As AI workloads become more diverse, customer demand for alternative solutions is increasing. Most foreign institutions recognize its growth potential, with target prices mostly above $200.

Microsoft (MSFT): The Leading Platform for Enterprise AI Transformation

Microsoft is the leading platform for enterprise AI transformation worldwide, building a strong ecosystem through comprehensive cloud-to-application AI solutions. Its exclusive partnership with OpenAI, along with Azure AI cloud platform and Copilot enterprise assistant integration, has successfully embedded AI technology into global enterprise workflows.

In FY2024, revenue reached $211.2 billion, with Azure and other cloud services growing 28%, and AI services contributing to over half of the growth. In Q1 2025, intelligent cloud revenue first exceeded $30 billion. As Copilot features are deeply integrated into products used by over 1 billion users worldwide, its monetization potential will continue to unfold. Many institutions see Microsoft as the most certain beneficiary of the “enterprise AI popularization” wave, with target prices ranging from $550 to $600.