Big Tech Is on Track to Spend Over $1 Trillion on AI Infrastructure by 2028. These 3 Semiconductor Stocks Could Be the Biggest Winners (Hint: Not Nvidia)

Every month it seems like one company or another announces it is increasing its budget for artificial intelligence (AI) data centers. Last month, Alphabet released plans for $85 billion in capital expenditures (capex) this year, up from its original 2025 outlook of $75 billion. Not to be outdone, Amazon, a week later, said it increased its capex budget to $118 billion, up from $100 billion.Big tech's spending is only set to climb higher over the next few years. Market researcher Dell'Oro Group forecasts the top 10 big tech companies will spend over $1 trillion on AI infrastructure in 2028. That's up from about $593 billion this year.Nvidia has been one of the biggest winners of these companies' spending spree so far. Its GPUs play a crucial role in AI training and inference servers. Demand for its chips has pushed both its volume and pricing higher, and that's reflected in its incredible revenue and profit growth over the last three years. Roughly two and a half years into the generative AI revolution, the company saw its revenue climb another 69% year over year, with profits climbing 57% on an adjusted basis during its most recent quarter.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool