Tech giants are spending billions on AI — grab the companies holding the picks and shovels
Google's parent company, Alphabet, just increased its fundraising goal to a massive $85 billion to double down on artificial intelligence. Meanwhile, Nvidia's leader is promising massive returns from the AI boom, and their own recent profits back that up.
Idea
The biggest tech companies are in an arms race to build artificial intelligence, and Alphabet raising $85 billion proves they are not slowing down. All of this spending heavily benefits Nvidia, which has already pulled in nearly $20 billion in profit recently from selling the computer chips needed for AI. Even though tech stocks have had a rough few days, the massive amount of money flowing into this sector makes a strong case for their long-term growth. Buying the dips in the companies actually supplying the AI revolution, like Nvidia, is a solid way to play this trend.