Big tech is flooding AI with hundreds of billions — buy the pick-and-shovel winners like Nvidia
The biggest tech companies in the world are collectively pouring hundreds of billions of dollars into AI infrastructure. Alphabet alone just announced an $80 billion stock sale to fund its AI buildout, and JPMorgan says this spending wave is kicking off an 'earnings supercycle' that could push stocks to new highs.
Idea
Alphabet is raising $80 billion and Meta, Microsoft, and Amazon are spending similar jaw-dropping amounts to dominate AI. All that money flows to the companies building the chips and data centers — and Nvidia has already booked nearly $20 billion in profit in just five months. JPMorgan is calling this an 'earnings supercycle,' meaning these companies' profits could keep surprising to the upside for quarters. The play here isn't guessing which AI app wins — it's owning the companies selling the picks and shovels to everyone racing to build.