Mega-cap tech is getting punished for AI spending, but secondary chip deals are booming
While the giant tech companies have been sinking over fears their AI investments won't pay off, actual AI infrastructure companies like Broadcom and Palantir are locking in massive new contracts. The money isn't leaving AI; it's just moving to the companies actually making the new technology work.
Idea
The broader tech market has shed trillions because investors are worried about massive AI spending at the big tech giants. However, deals like Broadcom partnering with OpenAI and Nvidia securing sovereign-AI contracts show that the companies supplying the picks and shovels are still seeing massive, guaranteed revenue. This divergence creates an opportunity to buy the infrastructure winners while avoiding the bloated mega-caps.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| PLTR | LONG | +0.00% ✗ | +2.26% ✓ | — |
| NVDA | LONG | +0.00% ✗ | +4.77% ✓ | — |
Price change since publication · updated Jul 12
Key details
Community
News sources
- Magnificent Seven shed $2.3 trillion in June as AI spending comes under closer scrutiny (MSFT) — Yahoo Finance
- Palantir Jumps 9% on NVIDIA Sovereign-AI Deal, Palo Alto Networks Climbs 4% — Yahoo Finance
- Following the Broadcom-OpenAI Deal, Wall Street Says AVGO Stock Still Could Gain 40% From Here — Yahoo Finance