1 AI Stock Poised to Outperform Micron and Sandisk on the Next Infrastructure Surge
TSMC is the ultimate pick-and-shovel AI stock that investors can buy to capitalize on the AI infrastructure boom.
Overview
Artificial intelligence (AI) infrastructure spending isn't slowing down, and that's not surprising, as major hyperscalers and AI companies need to fulfill massive contractual backlogs.
Oracle, for instance, recently reported a contractual backlog of a whopping $664 billion. Meanwhile, Alphabet notes that its Google Cloud backlog hit a whopping $514 billion in the second quarter. These massive numbers explain why market research firm Dell'Oro Group projects AI infrastructure spending to exceed $3 trillion by 2030. For comparison, Goldman Sachs expects over $1 trillion in AI investments this year.
Details
Dell'Oro Group's latest estimate is almost double the forecast it issued in January this year. This is great news for Micron Technology and Sandisk, two companies that have benefited significantly from heavy AI data center spending. Micron and Sandisk manufacture compute and storage memory that's solving a critical bottleneck in AI data centers by quickly transporting huge data sets to accelerator chips.
Source
Originally published at www.fool.com.