Semiconductor companies are poised to become the biggest cash generators of the artificial intelligence boom, while the technology giants spending on AI infrastructure are expected to burn through record amounts of capital.
Cash Flow Shift According to the research by Bank of America highlighted by The Kobeissi Letter on Sunday, NVIDIA Corp (NASDAQ:NVDA), Micron Technology Inc (NASDAQ:MU), Broadcom Inc (NASDAQ:AVGO) and Applied Materials Inc (NASDAQ:AMAT) are projected to generate a record $430 billion in combined free cash flow over the next 12 months, more than triple their combined total from two years ago.
At the same time, the combined free cash flow of Amazon.com Inc (NASDAQ:AMZN), Google's parent company Alphabet Inc(NASDAQ:GOOGL) (NASDAQ:GOOG), Meta Platforms Inc (NASDAQ:META), Microsoft Corp (NASDAQ:MSFT) and Oracle Corp (NYSE:ORCL) is projected to turn negative for the first time on record.
Shocking stat of the day:Nvidia, $NVDA, Micron, $MU, Broadcom, $AVGO, and Applied Materials, $AMAT, are now expected to generate a record $430 billion in combined free cash flow (FCF) over the next 12 months.That would be more than TRIPLE the FCF they generated just 2 years… pic.twitter.com/KeUZUMejrA— The Kobeissi Letter (@KobeissiLetter) July 12, 2026 Read Also: SK Hynix Retreats 10% in Seoul After Red-Hot Nasdaq Debut, Analyst Points to 'Correctional Period' ETFs in Focus The largest ETFs that provide exposure to semiconductor companies are the VanEck Semiconductor ETF (NASDAQ:SMH), iShares PHLX SOX Semiconductor Sector Index Fund (NASDAQ:SOXX), and the Direxion Daily Semiconductor Bull 3X ETF (NYSE:SOXL).
