Alphabet Is Raising $80 Billion for AI Infrastructure. These 4 Semiconductor Stocks Win the Most.
Spending on AI infrastructure is expected to climb 30% per year for the rest of the decade.
Alphabet Is Raising $80 Billion for AI Infrastructure. These 4 Semiconductor Stocks Win the Most.
Overview
One of the biggest investment themes in recent years has been the build-out of artificial intelligence (AI). The overall AI market is expected to grow from $390.9 billion in 2025 to nearly $3.5 trillion by 2033, which is a compound annual growth rate (CAGR) of 30.6%.
Drilling down a little further, spending on AI infrastructure -- chips, storage capacity, data centers, and assorted equipment -- is projected to have an equally robust growth curve, jumping from $35.4 billion in 2023 to $223.4 billion by 2030, with a CAGR of 30.4%.
Details
This kind of explosive growth is why companies like Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are digging deep to add computing capacity. And that spending isn't slowing down. Alphabet plans to spend as much as $190 billion this year on capital expenditures, and recently announced it is raising $80 billion through stock sales and a $10 billion investment from Berkshire Hathaway to fund those efforts.
Source
Originally published at www.fool.com.
