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Artificial intelligence (AI) infrastructure spending has been growing at an incredible pace, and the good news is that major hyperscalers, AI companies, and neocloud specialists are expected to continue investing more money in this space.
Nvidia recently noted that the combined capital expenditure of the top five hyperscalers is poised to reach $800 billion in 2026. The semiconductor specialist added that their capex could jump to $1.3 trillion in 2027. Importantly, Nvidia estimates that overall AI capex could jump to $3 trillion to $4 trillion by 2030.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Semiconductor stocks are winning big from the booming AI infrastructure spending. This explains why the PHLX Semiconductor Sector index has zoomed higher by 97% over the past year. However, Broadcom (NASDAQ:AVGO) stock has underperformed the semiconductor sector during this period, with a flat performance.
