This article takes a two-part look at the AI economy. On one side, you’ve got the hardware backbone—semiconductors—with TSMC leading the charge. On the other, there’s the software-centric growth story from Palantir and its AI Platform (AIP).
It’s wild how AI demand is reshaping both chip manufacturing and software ecosystems. The ripple effects hit investors and technologists in equal measure.
Semiconductors Drive AI Growth: TSMC’s Global Dominance
AI applications depend on advanced semiconductors. Market projections say this sector could nearly triple in the next decade, reaching about $2.8 trillion.
TSMC holds the top spot as the leading foundry, with a huge chunk of the supply chain and a massive customer list. The hardware side forms the base layer for everything from AI accelerators to new data centers.
TSMC’s scale and wide customer base give it a durable edge. The company delivers specialized chips at a scale few can match, and that’s become a major choke point as AI compute and inference needs skyrocket.
Dominance, Customers and Product Breadth
TSMC claims an estimated 72% market share as the leading foundry. They make chips for big names in AI like Nvidia, Broadcom, AMD, Intel, Apple, Qualcomm, and MediaTek.
Last year, TSMC served 534 customers and churned out around 13,000 products for a bunch of different applications. That’s a lot of manufacturing muscle and product variety—perfect for supporting AI accelerators at scale.
TSMC expects AI accelerator revenue to grow at a mid-to-high-50% CAGR through 2029. Overall revenue should rise about 25% CAGR in the same period.
At about 26x forward earnings, TSMC looks like a solid long-term play for anyone betting on AI-driven demand.
- Market trajectory: AI semiconductors could hit ~$2.8 trillion over the next decade.
- Leadership position: TSMC holds about 72% foundry share.
- Scale and reach: 534 customers, roughly 13,000 products in various applications.
- Growth outlook: AI accelerator revenue CAGR in the 50s; overall revenue CAGR near 25%.
- Valuation note: ~26x forward earnings—pretty supportive for a long-term thesis.
Palantir’s AI Platform AIP: Software-Driven AI Growth
Switching gears to software, Palantir Technologies shows how platforms can turn AI into real revenue. Their Artificial Intelligence Platform (AIP), launched in April 2023, mixes customer data with large language models to automate workflows and help people make smarter decisions.
Since AIP arrived, Palantir’s customer base and deal flow have picked up noticeably. The company saw a 34% jump in customers, reaching 954 by the end of 2025.
Big deals exploded—180 deals at $1 million+ compared to 55 in late 2022. Even more impressive, $10 million+ deals shot up twelvefold.
Revenue Momentum and Strategic Outlook
Palantir wrapped up 2025 with $11.2 billion in remaining deal value. That’s three times what it had just two years before, showing a strong revenue runway fueled by AI software platforms.
Forecasts suggest a ~29% CAGR for AI software platforms through 2034. This positions Palantir as a software company worth holding onto through 2035, at least if you’re looking at the numbers.
- Customer growth: 954 customers by end-2025, up 34% year over year.
- Deal momentum: 180 deals over $1M; 55 deals in 2022; 12x growth in $10M+ deals.
- Deal value runway: $11.2B in remaining value at end-2025.
- Growth outlook: 29% CAGR for AI software platforms through 2034.
- Strategic takeaway: a durable software play with upside through 2035.
Looking at both TSMC and Palantir, you get two different but connected ways to tap into AI-driven growth. On the hardware side, scale and process leadership matter a lot to keep up with the crazy demand for AI accelerators.
The software side, meanwhile, rewards companies that can actually make sense of data and automate decisions—turning all this AI hype into real results. If you’re investing or leading tech, it’s probably wise to keep an eye on both: semiconductor capacity and these AI-native software platforms. That’s how you’ll ride the next decade of AI innovation, or at least not get left behind.
Here is the source article for this story: The Only 2 Artificial Intelligence (AI) Stocks You Need to Hold Through 2035