For centuries, gold has been treated as the single most precious treasure. Even today, it has an exchange value and storage value. Someone with a gold mine is considered rich because their wealth will not fade with time. Instead, it will boost during a crisis. You can turn your tax-free savings account (TFSA) into a portfolio that gives you returns in all types of markets and economies. A TFSA that you can bank upon during emergencies, economic crises, and unemployment.
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Turning a TFSA into a gold mine
The TFSA has the unique benefit of allowing tax-free growth and withdrawals. It means that you invest $7,000 after-tax income in your TFSA and pay no tax whether you earn dividends or capital gains.
If you have a good hunch for growth stocks and invested US$10,000 in Nvidia (NASDAQ:NVDA) at the start of 2024, your investment would be worth US$38,760 now. 2024 was the year when artificial intelligence (AI) was trending. NVIDIA was posting triple-digit revenue and profit growth. The fundamentals were crazy, and orders were flowing in from every corner. Even though Nvidia’s stock surged 190% in 2023, you could see there was more upside as demand was far outpacing supply. If this money were invested through a TFSA, you would have $28,760 in tax-free capital gain.
It was not just Nvidia; other AI chip stocks, like Celestica and Broadcom, also saw a multi-year rally. These trends tell us that hopping on the AI rally in the first year can bear fruit for the next two years. You will know the rally is over when growth stagnates. Note that the share price won’t see a steep downside as the rally was supported by fundamentals. Chip stocks saw real revenue and profits.
The 2026 TFSA gold mine
According to McKinsey’s research, AI-related data centre infrastructure will need $5.2 trillion in capital spending by 2030, of which 60% will be spent on chips and computing hardware and 25% on cooling and electrical equipment. After the AI chip rally of Nvidia and Broadcom, the rally is now shifting towards energy and memory chips. The significant surge in demand for high-bandwidth memory (HBM) has created a supply shortage in the oligopoly memory chip market. It has become a seller’s market, and Micron Technology (TSX:MU), Samsung, and SK Hynix have the pricing power.
Micron stock
Micron saw its average selling price (ASP) rise 20% sequentially in the first quarter of fiscal 2026. It has decided to stop making memory chips for computers and mobile phones, which have a 15% operating margin in a normal market. Instead, it will channel that capacity to make data centre HBM’s that command a 40% operating margin in a normal market.
Since 2026 will be a year of acute supply shortage, prices will peak, and operating margins could surge too. Micron stock has already surged 330% in the last 12 months, but it still has significant upside as the supply shortage could take three years to ease. That is the time it takes to build new fabrication facilities.
Micron could be your TFSA gold mine for 2026, in which you could consider investing $3,500.
Capital Power stock
Another $3,500 could be invested in Capital Power (TSX:CPX), which acquires, develops, and operates power plants. It is seeing a growing demand for gas-fired power plants from AI data centers, which is driving its stock price. Also, more power plants are increasing their adjusted funds from operations (AFFO) by 54% year-over-year. This is driving its dividend per share by 6% annually, while keeping its payout ratio manageable in the 30–50% range. This stock can be your gold mine, providing regular income in every economy and capital appreciation in the AI age.
