2 Unsung Heroes of Big Tech's $725 Billion AI Capex Spend
Broadcom and TSMC are two unheralded AI infrastructure winners.
2 Unsung Heroes of Big Tech's $725 Billion AI Capex Spend
Overview
The artificial intelligence (AI) infrastructure market is booming, with big tech companies set to spend around $725 billion on capital expenditures (capex) this year alone. To put that in perspective, that is more than the gross domestic product (GDP) of all but 22 countries in 2025.
While AI infrastructure stocks have performed well, I think two stocks that have generally been underappreciated during this boom have been Broadcom (NASDAQ: AVGO) and Taiwan Semiconductor Manufacturing (NYSE: TSM). Let's take a closer look at these two unsung AI stocks and why they look like buys.
Details
As spending on AI chips ramps to extraordinary levels, hyperscalers (owners of large data centers) have been increasingly looking for ways to save on costs. One of the best ways to do this is to turn to custom chips called application-specific integrated circuits (ASICs). These are chips that are hardwired to handle specific tasks. Because they are sole-purpose chips, they tend to handle the tasks for which they were developed well, while also being more energy efficient. This is particularly ideal for AI inference, which is an ongoing cost.
Source
Originally published at www.fool.com.
