2 Hidden Businesses to Watch as AI Keeps Heating Up
2026-07-24 01:07
•Motley Fool Staff •The Motley Fool
••••• •••••••••••• Axe Capital view
AI Infrastructure Winners: What South Africans Should Watch
Strong AI demand is driving chipmakers and data center suppliers globally—here's what it means for the rand and JSE investors.
Taiwan Semiconductor's blistering 68% revenue growth signals that AI's hardware appetite isn't a short spike but a structural shift. Globally, data center giants like Meta doubling their Louisiana supercomputer spend to $50 billion underscore this. South Africa’s connection isn’t direct, but the USD/ZAR exchange rate tends to reflect global tech demand for semiconductor supplies. A stronger dollar usually pressures the rand, impacting local tech exposure like Naspers and Prosus, which rely heavily on global online platforms and cloud computing advances. On the ground, firms like Barloworld and Motus benefit indirectly as industrial and fleet clients upgrade plans fueled by better tech. For now, the AI cycle supports a selective bullish stance—favouring exposure to large global tech via Naspers/Prosus while keeping a close eye on USD/ZAR moves. If the AI hype dies down or TSM’s orders disappoint, local rand assets could face sharp volatility. this is just my opinion and not financial advice
Buy or hold Naspers and Prosus for tech upside but trim if USD/ZAR breaks decisively above 19, which could pressure earnings. Watch Barloworld and Motus for cyclical recovery but wait for clearer signals.
- Naspers
- Prosus
- USD/ZAR
- AI demand slows unexpectedly
- USD/ZAR spikes hurting rand-based earnings
6/10
Despite concerns that AI trends may be peaking, Taiwan Semiconductor's 68% year-over-year revenue growth in June and Meta's expansion of its Louisiana data center to $50+ billion demonstrate sustained momentum in AI infrastructure buildout. The podcast highlights two lesser-known companies positioned to benefit: Comfort Systems USA, which provides specialized cooling and electrical work for data centers, and Celestica, which assembles advanced chips into custom AI server racks.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Motley Fool Staff
Categories: Equities, Earnings, Technology, AI, Semiconductors
Tickers: TSM, META, FIX, CLS, NVDA, AMD, AAPL, GOOG, GOOGL, GOOGM, GOOGN, MSFT
Sentiment: Positive - Company reported 68% year-over-year revenue growth in June with accelerating demand trajectory (18% in April, 30% in May, 68% in June). First half 2026 revenue reached $75 billion, up 36% YoY. On track for $40 billion in AI chip revenue representing 25% of total revenue. Advanced manufacturing lines are fully booked, indicating strong demand durability. Company announced major expansion of Hyperion data center project in Louisiana from $27 billion to $50+ billion direct investment, with total project costs potentially exceeding $250 billion including infrastructure. Expansion demonstrates confidence in long-term AI infrastructure needs and commitment to proprietary custom hardware development.
Keywords: AI infrastructure, data center expansion, semiconductor manufacturing, supply chain bottlenecks, capital expenditure, liquid cooling technology
Insights:
- TSM: Positive: Company reported 68% year-over-year revenue growth in June with accelerating demand trajectory (18% in April, 30% in May, 68% in June). First half 2026 revenue reached $75 billion, up 36% YoY. On track for $40 billion in AI chip revenue representing 25% of total revenue. Advanced manufacturing lines are fully booked, indicating strong demand durability.
- META: Positive: Company announced major expansion of Hyperion data center project in Louisiana from $27 billion to $50+ billion direct investment, with total project costs potentially exceeding $250 billion including infrastructure. Expansion demonstrates confidence in long-term AI infrastructure needs and commitment to proprietary custom hardware development.
- FIX: Positive: Company specializes in HVAC, plumbing, and electrical work for commercial data centers. Recent quarter showed 56% revenue growth YoY, EPS more than doubled, and backlog grew 80%. Well-positioned to benefit from liquid cooling requirements in next-generation data centers with lead times exceeding one year.