2 Millionaire-Maker Technology Stocks

Everyone loves in the hottest new nology

The blem is, in cutting-edge nology can be risky, as there is constant disruption peeking around the corner that could kill your model

Just ask investors in software companies today how they feel the risk of artificial intelligence (AI)-generated graming and what it could mean for their competition

If you are going to invest in nology, you need to focus on finding companies with competitive advantages, or competitive moats around their operations

This can come in the form of economies of scale, a classic competitive advantage that can lead to durable leadership for a company in a sector

At least, that is what it can seem sometimes when ing the company

Coupang is an e-commerce marketplace in South Korea with first- and third-party sales, its own dery and warehouse network, and a burgeoning advertising and ing operation

In fact, I would argue that Coupang has imved on the Amazon dery model, if you thought that was even possible

Customers who to Coupang's Rocket Wow membership get free dery that can arrive by 7 a

The next morning if ordered before midnight

It has rapid fresh grocery dery, as well as nicians that will install appliances and car parts ordered on the Coupang marketplace

All of these services are possible because of Coupang's immense investments in infrastructure in South Korea

Coupang still has a long runway to gain market in South Korea

But it is beginning to expand its services as a full-fledged nology vider

This includes expansion geographically into Taiwan, which is seeing rapid revenue growth as the company replicates its e-commerce model

It just announced for the first time its Intelligent Cloud computing service, which is taking a page out of the Amazon playbook

It is un how large Coupang's cloud is today, but with so much spending going to cloud companies when it comes to AI, there is a ton of potential here

Image source: Getty Images

Manufacturing wess for AI The second stock on my list has even larger economies of scale than Coupang: Taiwan Semiconductor Manufacturing (TSM -2

The semiconductor and computer chip manufacturer -- otherwise just called TSMC -- dominates advanced systems that are being utilized for AI

Its largest customers include the s of Nvidia, Apple, and Qualcomm

Along with its large contracts with suppliers and customers, this capital spending gives TSMC a huge competitive advantage in scale versus the competition

In fact, no other company can match its advanced semiconductor making at such a large scale, giving TSMC little competition to be afraid of

As you might expect, TSMC's revenue has begun to soar because of the insatiable demand for AI computer chips

These are unheard-of fit margins for a heavy manufacturer, which shows TSMC's immense pricing power in the industry

In the years ahead, spending on AI is expected to keep growing at an insatiable rate, fueling semiconductor demand

This will lead the dollars to flow to TSMC's factories as it will need to pump out more and more computer chips for customers

In turn, this will lead to higher revenue and fit for the company

At a price-to-earnings ratio (P/E) of 30 today, TSMC is at a reasonable price for a monopoly vider in an industry seeing a rapid surge in demand

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors

Brett Schafer has positions in Amazon and Coupang

The Motley Fool has positions in and recommends Amazon, Apple, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing

The Motley Fool recommends Coupang

The Motley Fool has a disclosure policy.