Big tech is dumping $84B into AI infrastructure — buy the chip equipment makers they're forced to buy from
The big tech companies are panicking to get their hands on enough AI chips, with Google's parent company Alphabet raising a record $84.75 billion to fund the buildout. At the same time, the equipment makers who actually build the chip factories are seeing massive order growth — making them a smarter way to play the AI boom than the overvalued tech giants themselves.
Idea
AI demand is so strong that even Alphabet can't keep up, prompting them to raise a historic $84.75 billion to fund infrastructure. Meanwhile, Microsoft is having its worst month since 2000, showing that the big tech buyers are under pressure. The smart money here is in the companies selling the picks and shovels: Lam Research just had its price target raised by $150 as chip equipment spending heads toward $250 billion. When the big tech stocks drop on valuation concerns, chip equipment makers like LRCX offer a way to profit from the same AI buildout without paying the premium for the big tech names.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| GOOGL | LONG | +0.95% ✓ | +3.62% ✓ | — |
| MSFT | LONG | +1.28% ✓ | +5.00% ✓ | — |
Price change since publication · updated Jul 11
Key details
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News sources
- Lam Research (LRCX): BofA Raises Its Target by $150 as Chip Equipment Spending Heads Toward $250 Billion — Yahoo Finance
- AI Demand Is Outstripping Supply — Even Google Can't Keep Up — Yahoo Finance
- Microsoft stock is headed for its worst month since 2000 — Yahoo Finance
- Alphabet (GOOGL) Prices the Largest Equity Capital Raise in US Corporate History at $84.75 Billion — Yahoo Finance