1 Hyperscaler Stock to Buy, 1 to Hold, and 1 to Avoid
Not all hyperscalers are created equal.
Overview
Hyperscalers, which are companies that own large data centers, have been spending aggressively to build out artificial intelligence (AI) infrastructure. Although the market has been concerned about this spending, the economics for things like cloud computing are quite good.
Amazon (NASDAQ: AMZN), for example, recently came out and said that it gets a payback on its AI chip and networking spending within two to three years, while SpaceX (NASDAQ: SPCX) has said it can get its money back within a year. Against that backdrop, let's look at one hyperscaler stock to buy, one to hold, and one to avoid.
Details
Amazon is the world's largest cloud computing company, having invented the entire infrastructure-as-a-service concept. Today, it remains the market share leader and has been seeing accelerating growth, backed by partnerships with OpenAI and Anthropic, in which it holds about a 20% stake.
Source
Originally published at www.fool.com.
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