Tech giants are pouring billions into AI — ride the wave on chip and server suppliers
The biggest tech companies in the world are pouring unprecedented amounts of money into artificial intelligence. Alphabet just increased its fundraising to nearly $85 billion, and Meta, Microsoft, and Amazon are gearing up to spend similarly shocking amounts.
Idea
Alphabet and the other tech giants are collectively committing hundreds of billions of dollars to build out AI capabilities. This massive spending has to go somewhere, and the primary beneficiaries are the hardware and networking companies that build the physical data centers and chips. Even though the broader market has been jittery lately, these infrastructure companies have a guaranteed wave of incoming revenue from these recently announced mega-deals, making their recent dips a potential buying opportunity.